Global Video Game Market Size, Share & Industry Trends Analysis Report By Type (Offline and Online), By Device (Mobile, Console, and Computer), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Video Game Market
Market Report Description
The Global Video Game Market size is expected to reach $413 billion by 2028, rising at a market growth of 11.8% CAGR during the forecast period.
A video game, often known as a computer game, is an electronic game that generates visual feedback through the use of a user interface or input devices, such as a joystick, keyboard, controller, or motion-sensing device. This feedback is displayed on a visual display device such as a TV, monitor, touchscreen, or virtual reality headset. Audio feedback is given through speakers or headphones, as well as other sorts of feedback, such as haptic technologies, are frequently used in video games. Not all computer games are video games; for example, text adventure games, computer chess, and other games may not usually require a visual display.
The market demand may be fueled by game development that focuses on interactive experiences. For decades, video games have entertained both youngsters and adults. Since the early days of videogames and the first Nintendo and Atari consoles, they've gone a long way. Blurry visuals and limited acoustics have become a thing of the past, with video games becoming more realistic than ever before. As technology progresses, video games improve.
The expense of developing a game for one of the gaming platforms has risen in tandem with the increasing complexity of video game development. In terms of manufacturing and sales costs, this has pushed development process into Hollywood movie territory. The video game industry is enormous. It is bigger than the film and music businesses combined, and it's just becoming bigger.
Virtual reality is now a reality. Meta's Oculus VR division is working hard to improve the performance of the virtual reality headsets it has already delivered. In 2014, Meta paid $2 billion for Oculus VR. The Oculus Quest 2 is the current version of Meta's product. Video games have already exceeded several other types of entertainment in terms of immersion, and virtual reality would add still another layer. When consoles add peripherals to take in such inputs, there would be more experimentation with controls, such as integrating speech, touchscreens, and gestures to game dynamics.
COVID-19 Impact Analysis
While the world economy was hit hard by the COVID-19 pandemic, the video game industry continued to flourish at a spectacular rate. People were forced to stay indoors and engage in various indoor activities, such as playing video games, as a result of the lockdowns and restrictions on people's movement imposed by various governments around the world as part of their efforts to stop the spread of coronavirus. This increased the number of customers and the number of hours spent playing online games. Several gaming businesses have also made their online games available for free download.
Market Growth Factors
Growing cellular and internet subscriptions for playing video games
Several manufacturers of consoles and other gaming devices have benefitted from the increased usage of the internet, which has caused the gaming industry to change dramatically, increasing their profit margins in the process. In addition to the increased use of the Internet and social media platforms, online gaming has grown in popularity. As the Internet becomes more accessible and free, the demand for online gaming has increased. An important market force is the continuous growth in the number of Internet customers, as well as the growing number of social network accounts. As more people use the Internet, so does the demand for online entertainment.
Governments initiatives along with cloud gaming to grow the video games sector
Government and property developer initiatives to establish smart cities can dramatically increase market demand. The use of energy-efficient lighting and further development in countries can bode well for the market. The desire for video game solutions may be encouraged by rapid urbanization and the transformation of cities into smart cities. Market demand may be driven by the urgent need for infrastructure improvement and community safety. Furthermore, in the coming years, the adoption of the internet of things (IoT), 5G, and analytics might open up a slew of new options. This is really what cloud gaming is all about - isolating the technical capabilities required to execute a video game from the device on which it is played. By using faraway datacenters, a company can broadcast a game to a user's device using their computing power.
Market Restraining Factors
High costs and heating & lagging problems of the gaming Equipment
Potential clients may be put off by the use of pricey technology, lighting effects, and control systems. One of the most serious problems with computers is overheating. Since gaming laptops have higher performance and more usage, the issue causes more problems than normal laptops. Most of the Laptops do not incur overheating, but computers do. The construction of computers can leave spaces to maintain the ideal temperature. Every space is unused space here. As a result of the compactness, air does not pass through the components, which causes them to become heated and approach thermal throttling.
Based on Type, the market is segmented into Offline and Online. The online segment registered a substantial revenue share in the video game market in 2021. Due to the growing number of gamers who view online video games as a preferred form of entertainment is also predicted to contribute significantly to the online segment's growth. Smartphone penetration is expanding, and cloud gaming is becoming more popular, creating new potential for the online segment to flourish. As a result, market players are focusing their efforts on manufacturing novel video game consoles to take advantage of the prospects given by internet gaming.
Based on Device, the market is segmented into Mobile, Console, and Computer. The mobile segment acquired the largest revenue share in the video game market in 2021. Due to the increasing smartphone adoption rate around the world is responsible for the mobile segment's rise. The growing popularity of mobile tablets with larger displays, which provide a better gaming experience, can also be credited to the expansion of the mobile category.
|Market size value in 2021||USD 191.2 Billion|
|Market size forecast in 2028||USD 413 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 11.8% from 2022 to 2028|
|Number of Pages||159|
|Number of Tables||253|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Device, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia pacific segment procured the largest revenue share in the video game market in 2021. Due to the China's rise as a major gaming hub, the regional market was able to dominate the market. The unrelenting rise in smartphone usage in China is propelling the regional market forward. Tencent Holdings Limited of China has risen to become the largest participant in the video game business, due to aggressive inorganic development methods such as the purchase of Riot Games and Supercell Oy. The expanding rise of online gaming competitions and the increasing growth of digital gamers in the Asia Pacific are leading market players to build systems that could allow gamers to access AAA titles.
Free Valuable Insights: Global Video Game Market size to reach USD 413 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Electronic Arts, Inc., Nintendo Co., Ltd., Rovio Entertainment Corporation, Microsoft Corporation, Lucid Games Ltd., Tencent Holdings Ltd., Activision Blizzard, Inc., Sony Corporation, Apple, Inc., and The Walt Disney Company.
Strategies deployed in Video Game Market
» Partnerships, Collaborations and Agreements
- Jan-2022: Walt Disney signed a multi-year global licensing agreement for the Frozen franchises and Disney Princess with Mattel, an American multinational toy manufacturing and entertainment company. Through this partnership, Mattel would have the global authorization privilege to create lines of toys for Disney customer Products, Games, and launching such as figures, small dolls, and fashion dolls.
- Nov-2021: Microsoft partnered with Sega, a software and hardware company. Through this partnership, Sega aimed to leverage the Microsoft Azure cloud platform to develop extensive, global games recently declared at the Super Game project. Additionally, working together the companies aimed to evaluate advancement procedures and continue to deliver enhanced experiences to participants utilizing Azure cloud services.
- Sep-2021: Electronic Arts formed a partnership with NVIDIA, an American multinational technology company. Under this partnership, Electronic Arts would launch its popular games within NVIDIA GeForce NOW cloud gaming service, starting with Apex Legends, Battlefield 1 Revolution, Dragon Age: Inquisition, Unravel Two, and Mirror's Edge Catalyst. Additionally, GeForce NOW would broaden the abilities of the GeForce PC gaming adventure to attain millions of underprivileged gamers on a new setup and in new regions.
- Oct-2020: Microsoft formed a partnership with GameStop, the largest U.S. player in the retail sector specializing in video game and PC entertainment software. Under this partnership, GameStop would standardize the Company’s business operations on Microsoft’s cloud solutions and hardware products to deliver rich new digital experiences to customers, creating the “ultimate gaming destination” for gamers in its vision to be the premier omni-channel customer access point for video game products.
» Product Launches and Product Expansions:
- Sep-2021: Disney unveiled the Disney Classic Games Collection, a big dosage of gaming nostalgia. The classic game collection would be available for PS4, Xbox One, Steam, and Switch, with modernized 1080p-affable graphics.
- Jul-2021: Nintendo introduced Nintendo Switch OLED Model, a new version Switch game console. The OLED Model offers a bigger, brighter, and more colorful display than the previous model.
- Apr-2021: Apple introduced 30 new games into its prevailing Apple Arcade. The catalogue provides two new videogames classified to assist players to find the games they require more comfortably. Additionally, Apple Arcade provides advantages such as fully unlocked games, no ads popup, no in-app purchases, and family participation with up to six members.
- Sep-2020: Nintendo introduced Super Mario 3D All-Stars, Super Mario 64, Super Mario Sunshine, Super Mario Galaxy, Super Mario Bros. 35, and Super Mario 3D World + Bowser’s Fury. Through this 35th anniversary event, Nintendo also launched Mario Kart Live: Home Circuit game, which would deliver pleasure of Mario Kart series to the actual world leveraging the Nintendo Switch system to control a real Karts and actual players.
» Acquisitions and Mergers:
- Aug-2021: Rovio completed the acquisition of Ruby Games, a hyper-casual game developer, and publisher based in Turkey. Through this acquisition, the company aimed to take a crucial step up in growth approach by arriving the quick-growing hyper-casual market to reinforce its spectator base, and provide players a more distinct suite of titles.
- Jul-2021: Tencent took over Sumo Group, a British video game developer. Through this acquisition, Tencent aimed to deliver its resources and expertise to boost the advancement of Sumo in the U.K. and abroad, supporting Sumo for elite creative genius.
- Jun-2021: Electronic Arts completed the acquisition of Playdemic from AT&T, a provider of telecommunications, media, and technology services. Through this acquisition, the company aimed to provide new participative amusement for approximately half a billion participants across the globe.
Scope of the Study
Market Segments Covered in the Report:
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Electronic Arts, Inc.
- Nintendo Co., Ltd.
- Rovio Entertainment Corporation
- Microsoft Corporation
- Lucid Games Ltd.
- Tencent Holdings Ltd.
- Activision Blizzard, Inc.
- Sony Corporation
- Apple, Inc.
- The Walt Disney Company
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North America Video Game Market Report 2022-2028
Europe Video Game Market Report 2022-2028
Asia Pacific Video Game Market Report 2022-2028
What would be the size of the video game market by 2028?
The global video game market size is expected to reach $413 billion by 2028.
What are the key driving factors and challenges in the video game market?
Growing cellular and internet subscriptions for playing video games are increasing are driving the market in coming years, however, high costs and heating & lagging problems of the gaming Equipment growth of the market.
What are the major top companies in the competitive landscape?
Electronic Arts, Inc., Nintendo Co., Ltd., Rovio Entertainment Corporation, Microsoft Corporation, Lucid Games Ltd., Tencent Holdings Ltd., Activision Blizzard, Inc., Sony Corporation, Apple, Inc., and The Walt Disney Company.
Which segment shows a high revenue share of the video game market in 2021?
The Offline segment acquired maximum revenue share in the Global Video Game Market by Type in 2021, thereby, achieving a market value of $279.5 billion by 2028.
Which segment shows the high growth rate of the video game market over the forecast period?
The Console segment is showcasing a CAGR of 12% during (2022 - 2028).
Which region dominated the video game market in 2021?
The Asia Pacific market dominated the Global Video Game Market by Region in 2021, and would continue to be a dominant market till 2028.