The video game market size is growing very fast. It has become so large that websites such as gamesgrace.com and others have become mainstream sites for people to get news and reviews. According to the UK Interactive Entertainment Association, the market will reach $300 billion by 2025. With an estimated 2.5 billion players worldwide, the gaming industry employs millions of people worldwide.
The growing demand for video games and the growth of online gaming platforms such as Steam and Netflix are essential factors driving the gaming industry’s development until 2024. China is considered the largest games market with an estimated turnover of 41 billion US dollars by 2024, closely followed by the US, Europe, Japan, the Middle East, and North Africa.
It has increased so much that there is much talk about the saturation point of the market. The future video game market seems very promising, with enormous opportunities for smartphones, tablets, and computers. Moreover, the video game industry is also expected to decrease in 2024 because of the global economic slowdown caused by COVID-19.
However, the market will still see a recovery in the next year, and it’s expected to reach a staggering $ 204 billion by 2024 with an average CAGR of 6%.
Many factors could affect the forecasted growth rate of the market. The forecast may vary depending on which video game console is being used, which mobile platform is used, the age group of users, the percentage of people playing at home versus playing at a place of business, and the country where it is located.
The first five years are widely considered the golden age of video game consoles. The Wii launched in 2024 and has been an incredible success so far. Sony and Nintendo followed suit with their respective consoles; however, the Wii had received critical acclaim for its innovative motion control gaming.
As mentioned above, the Wii received great reviews from critics and gamers alike. This was expected because of its innovative motion control feature. This technology is only available on the PlayStation 3 and Xbox 360 so far. One of the factors why the Wii sold so well is that there is no clear leader in this device type.
The video game market size is predicted to increase through the next five years, depending on which device type is utilized.
Next, let’s discuss the segmentation in terms of game types and device types. Currently, there are three major categories for games. They are first-person shooter, action role-playing, and the racing category. Each of these categories has a sub-group like tactical combat, military combat, and the detective story.
Based on these different segments, we can develop an outlook on the market size for each sub-group. Besides, these outlooks can also be categorized into two distinct categories. The first category includes competitive industry players who invest in research and development of new technologies or test their products against competitors.
Next is the non-competitive market participants who follow the trends of other market participants and use their technological innovations to create new products or adjust an existing product to meet the needs of a new segment of customers.
As these video game market participants invest in the R&D, they can create new technologies to keep up with other players. The second category of game market size is the segmentation by device type. There are three types of devices to consider.
These include the personal computer (PC), the handheld game console (HMD), and the video game accessories (OEM). Based on the above device type analysis, you can develop an outlook of the market size for each sub-group.
The largest segment of the market will be mobile games, with a projected market volume of 19.5 billion dollars in 2024 and 29.7 billion dollars by the end of 2024. By 2024, the mobile games market in the US, Europe, Asia-Pacific, and the Middle East and Africa (MEA) will be worth $2.1 billion, $1.4 billion, or 1 percent. Technavio has in its latest report “Video game market size and trends.
Critical factors for market growth are the increasing adoption of mobile devices and improved internet access. Mobile gaming is growing significantly compared to other segments and is the largest segment in the global video game market with a market volume of 19.5 billion dollars by 2024.
Mobile and cloud gaming will lead the growth, with the market continuing to shift to recurring revenue from mobile and mobile games – games only, cloud and virtual reality games. If cloud gaming will change the way we play, download our free white paper to get more insights and see how the steps toward monetizing the game are intensifying. Esports is also making its mark on the video game market, with revenue expected to rise to $2.5 billion by the end of 2024.
