The global video games market size stood at USD 188.73 billion in 2021. It is projected to grow from USD 199.74 billion in 2022 to USD 307.19 billion in 2029 at a CAGR of 6.3% over the forecast timeframe. The market is set to gain traction from increasing technological advancements. Fortune Business Insights™ mentioned this in a report titled, “Video Games Market, 2022-2029.”
The report provides an extensive overview of key drivers and challenges impacting market augmentation over the forecast timeframe. It studies the market thoroughly by fragmenting it into segments and regions. Growth rate and market share estimates of each segment and region are documented as well. Moreover, the report encompasses company profiles section that briefs readers about strategic moves made by leading players and enables them to make informed decisions.
Fortune Business Insights™ lists out all the video games market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
- Sony Group Corporation (Japan)
- Microsoft (U.S.)
- Nintendo (Japan)
- Tencent (China)
- Activision Blizzard (U.S.)
- Electronic arts (U.S.)
- Epic Games (U.S.)
- Take-two interactive (U.S.)
- Ubisoft (France)
- Bandai Namco Holdings Inc. (Japan)
Implementation of Stringent Lockdowns Boosted Product Demand
The spread of COVID-19 worldwide prompted governments to announce social distancing norms and implement lockdowns to curb the growing number of cases. Offices and schools were shut down and people were forced to isolate themselves at home. This propelled the demand for video games. Smartphone penetration also increased which raised the demand for multiplayer games.
Drivers & Restraints-
Increasing Integration of Advanced Technologies will Stimulate Industry Expansion
The growing integration of 3D, sound effects, high-definition graphics, Augmented Reality (AR), and Virtual Reality (VR) in games increases their appeal. Video games nowadays are very realistic due to their high-quality visual effects, sound effects, and detailing. A shift toward user centricity and personalization is further contributing to the global video games market growth.
On the other hand, rising concerns regarding growing aggression among teenagers due to the promotion of violence in games will act as a challenge for businesses operating in this domain.
Increasing Penetration of Smartphones will Drive Market Growth
Based on device, the global market is split into smartphones, PC/laptop, and consoles. Among these, the smartphones segment held the largest video games market share. Increasing adoption of smartphones and easy access to 5G networks resulted in a rise in the number of gamers. Technological advancements in smartphones and availability of high speed internet have boosted mobile gaming, which will also aid market proliferation.
Technological Advancements and Tech Savvy Populace will Aid Market Proliferation
According to age group, the market is divided into generation X, generation Y, and generation Z. Generation Z is tech savvy as they grew up in an era of technological advancements, availability of high speed internet, and growing smart phone penetration.
Launch of Gaming Smartphones Will Propel the Market
As per platform type, the market is arrayed into online and offline. Among these, the online segment captured the largest share due to launch of new smartphones with advanced features, increasing digitization, and rapid internet penetration. The segment consists of various types of games such as first-Person Shooter Games (FPS), Multiplayer Online Battle Arena Games (MOBA), Real-Time Strategy Games (RTS), Battle Royale games, and others.
Geographically, the market is fragmented into North America, South America, Europe, Asia Pacific, and the Middle East & Africa.
Asia Pacific to Dominate Stoked by Presence of Leading Players
Asia Pacific is a leading contributor to market growth owing to the presence of leading companies in the region and rising internet and smartphone penetration. The growing usage of smartphones urges developers to focus on developing multiplayer video games such as PUBG and COD to meet the demand of expanding consumer base, which, in turn, propels market expansion.
North America is projected to grow rapidly owing to expanding gaming community, easy access to internet, and availability of devices with advanced technology.
Product Launches to Promote Market Augmentation
Leading companies often make strategic decisions such as partnerships, mergers & acquisitions, collaborations, and investments in research & developments to maximize profits. One such decision is to launch new products with advanced features to meet growing consumer requirements.
Key Industry Development-
- July 2022: Asus launched the new ROG Phone 6 Pro and ROG Phone 6 and expanded its gaming smartphone line. The phones have IPX4 rating, latest Snapdragon 8+ Gen 1 system-on-chip, 512 GB storage, and up to 18GB RAM.
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