The global video game market was valued at USD 189.3 billion in 2021 and is projected to reach USD 560.11 billion by 2030, registering a CAGR of 12.81% from 2022 to 2030.
One of the most popular types of entertainment nowadays is the video game, which gives its players the opportunity to engage in an immersive gaming experience. The International Trade Administration of the United States Department of Commerce estimates that the global market for media and entertainment reached $ 1.9 Trillion in 2016, and that figure increased to $ 2 Trillion the following year. Alongside the expansion of the worldwide media and entertainment business comes the anticipated growth of the global video game industry. It is anticipated that developments in technology and ongoing innovations in both hardware and software will continue to fuel the growth of the market over the projected period. These advancements are aimed at improving the real-time rendering of graphics. It is anticipated that factors such as the widespread availability of smartphones, the rising rate of internet penetration, and the convenience of downloading games from the internet would all contribute to the expansion of the industry.
Massive multiplayer online games (MMO), free-to-play games (F2P), and multiplayer games are becoming increasingly popular as a result of an increase in the number of people who prefer to play video games online. This pattern is expected to continue over the next several years. As a result, creators of video games are placing a greater emphasis on the efficiency and compatibility of hardware. At the same time, shifting consumer preferences and rising levels of discretionary income across the globe are driving the large-scale adoption of advanced gaming consoles equipped with sophisticated features such as record and share and cross-platform gameplay. These factors are driving the adoption of advanced gaming consoles equipped with sophisticated features.
Game developers have come to the realisation that many people use social media to search for the video game of their choice. As a result of this realisation, game developers are launching several games across various genres on social media in an effort to attract customers. These genres include action, role playing, simulation, and strategy. The increase in the number of people competing professionally in video games, as well as the growing popularity of e-sports competitions, are also boosting the sales of video games and equipment. An investigation is also being done into the viability of gaming as an educational medium with the potential to foster cognitive learning. The idea of using video games to learn new material is still in its infant stages, but it is steadily gaining support.
In the wake of the pandemic's initial outbreak, several businesses were forced to contend with setbacks and disruptions to the launches of their respective products. In addition, the numerous press conferences that were planned to provide the most recent game news and trailers have been postponed. For example, the Game Developers Conference, which was initially planned to take place in June of 2020, has been formally moved to a later date. At the same time, supply chains experienced disruptions as a result of the temporary suspension of operations at several manufacturing sites in China. This had an effect on the manufacture of hardware, including gaming consoles, which was impacted by the situation.
The expansion of internet connectivity, the growing prevalence of the use of smartphones, and the introduction of high bandwidth network connectivity such as 5G are all factors that are further creating chances for the expansion of the demand for gaming markets around the world. According to the report published by the GSMA, as of November 2021, 170 mobile operators had launched commercial 5G services, and by the end of 2021, 7 percent of the population would have access to 5G technology. This created new opportunities for mobile vendors to introduce 5G smartphones to the market.
In 2021, the mobile segment led the market with a greater than 40 percent revenue share. The mobile category is anticipated to maintain its market dominance over the projection period. The expansion of the mobile segment can be ascribed to the worldwide increase in smartphone penetration. The expansion of the mobile market can also be related to the rising desire for mobile tablets with larger screens, which provide a superior gaming experience. Growing portable console sales are also anticipated to play a significant part in fueling the segment's growth during the projected period.
The console market category is anticipated to increase at a significant rate throughout the forecast period. It is projected that lucrative features, such as high-end displays and sound systems designed to improve and enrich the gaming experience, would fuel the expansion of the console segment. Additionally, consoles are packed with new capabilities that enable gamers to capture and upload gameplay footage. In order to provide gamers with an immersive experience, next-generation gaming consoles also include dynamic simulation.
Over 62 percent of the market share in 2021 was held by the offline segment. However, the internet category is anticipated to experience the highest CAGR during the forecast period. The segment's growth is attributable to the increasing popularity of multiplayer games. Additionally, online games promote in-game communication and enhance the entire gaming experience, which bodes well for the segment's growth. Particularly influential in establishing a virtual platform for online video games are social networking sites.
The rising demand for interactive entertainment systems and the increasing number of gamers who view online video games as their preferred form of entertainment is also anticipated to play a significant influence in the expansion of the online segment. The increased smartphone penetration rate and growing inclination for cloud gaming are also creating new growth potential for the online market. As a result, market participants place a significant emphasis on producing novel video game consoles to maximize the prospects presented by internet gaming.
In 2021, Asia and the Pacific had the largest market share, accounting for more than 53 percent of total sales. The rise of China as a significant center for gaming has made it possible for the local market to take the lead in the global market. The expansion of the regional market is being driven in large part by the uninterrupted rise in the percentage of people in China who own smartphones. As a result of the aggressive pursuit of inorganic growth strategies, such as the acquisition of Riot Games and Supercell Oy, the Chinese company Tencent Holdings Limited has emerged as the largest player in the global video game market. This achievement is attributable to the fact that the company is based in China.
The increasing number of people playing video games online and the growing number of people participating in online gaming competitions in the Asia Pacific region have prompted market participants to build platforms that have the potential to give gamers access to AAA games. For example, in December 2021, Tencent Holdings Limited and NVIDIA Corporation collaborated to introduce START, a new cloud gaming service that enables gamers to enjoy AAA games on weak devices. This was made possible because of the collaboration between the two companies. Due to the fact that e-sports and massively multiplayer online games are becoming increasingly popular in South Korea, it is anticipated that the country will make a sizeable contribution to the expansion of the regional industry.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
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