Game Engines Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Type (3D, 2D), By Platform (Console, Mobile, Computer), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global game engines market size was valued at USD 2.14 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.76% from 2022 to 2030. Game engines offer developers a host of tools and components to enable them to create gaming applications robustly. Advances in technology and continued innovation in both hardware and software have created the trend of high-quality video games and compelling tools for a host of applications, including e-learning, training, and gaming console, thus propelling the growth of the market. Additionally, industry players are utilizing game engine technologies for real-time 3D solutions for architecture modeling, design modeling, content creation, and more. Prominently, game developers are expected to prioritize commercially developed gaming engines such as Epic Games’ Unreal Engine or Unity Technologies’ Unity Game Engine to rev up game development.

Game architectures offer features, including animation, and are responsible for providing memory management, collision detection, and graphics. Moreover, the growing trend of augmented reality (AR) and virtual reality (VR) technologies in game frameworks is poised to reinforce market growth as it helps developers meet the demand to create more immersive video games and content. Through these immersive video games, developers offer gamers the chance to explore opportunities in individualizing in-game content, including building and sharing level components and customizing avatars and in-game items by creating such in-game modifiers. This, in turn, increases the demand for gaming engines and fuels the growth of the market.

During the COVID-19 pandemic, video gaming gained an uptick worldwide as it became a major form of entertainment for people during quarantine, which boded well for the industry forecast. Gaming offered an engaging distraction for people amidst social distancing as consumers exhibited robust demand for online and interactive entertainment. The pandemic increased the demand for video games, wherein developers began utilizing game framework engines to create new and addictive video games. For instance, in April 2020, Microsoft’s Xbox Game Pass service exceeded 10 million members. Moreover, in May 2020, multiplayer gaming among those 10 million members rose by 130 percent. The post-COVID outlook also highlights a surge in demand for video games, which will drive developers to use game engines and push market growth.

Additionally, the onset of the COVID-19 pandemic furthered the penetration of video games as online multiplayer video games became a viable tool for users during quarantine. Developers realized that video games were one of the few forms of entertainment during quarantine and turned towards game development engines to create more games, such as Among Us, which gained immense popularity due to its online multiplayer feature during the early stages of the pandemic. Moreover, game engines allow developers to work remotely due to their cloud-based features and high-performance remote desktop support. For instance, in August 2021, Unity announced it had completed the acquisition of Parsec, a remote desktop, and streaming technology company, for USD 320 million. This acquisition would allow developers to work on the game engine from anywhere, through the cloud infrastructure, and use real-time 3D capabilities.

Game developers and other stakeholders are using gaming engines to focus on the asset store, multiple platform support, and compelling graphics. For instance, in March 2022, Developer Spiral House announced that PC Building Simulator would be launched on the Epic Games Store. The U.K.-based game developer inferred that the sequel would have improved graphical fidelity to boost the realism of hardware and software simulation as it was developed on the Unity game engine. Industry players have also increased their focus on innovations and product offerings. For instance, in January 2022, Crytek was reported to have confirmed that a new Crysis game was in development.

Component Insights

The solution segment accounted for the largest share of over 80.0% in 2021 due to the soaring popularity of multiuser game applications in competitive gaming tournaments such as Counter-Strike: Global Offensive Major Championships, eSports World Convention, and Evolution Championship Series. Moreover, 3D game-engine solutions have gained traction to make the game development process more intuitive. Forward-looking companies are exploring opportunities in 3D game development engines to minimize time and cost. The immense popularity of 3D game engines, such as Unreal Engine and Unity Engine, has encouraged millennials and the Gen Z population to emphasize their use.

The services segment is expected to grow at the highest rate of 18.8% over the forecast period owing to the game engine services that enable developers to emphasize product engagement and foster AR experience traction. Developers often use popular game framework engines available as a service to develop video games as they come inbuilt with powerful tools and features with no or minimum subscription fees. On the other hand, game engine developers offer their engines as a service to bring in more users on a subscription or royalty basis. Furthermore, the growing prominence of cloud gaming services and game streaming services is propelling the game engine service market value.

Type Insights

The 3D game engine type accounted for the largest share of over 80.0% in 2021 owing to the high visual quality, asset store management, intriguing gameplay, and intuitive design. 3D game development has further received applications across gaming consoles, mobile devices, and desktop applications. For instance, in July 2022, Cocos Technology announced that Cocos Creator added the ability to develop 3D games for the Nintendo Switch. Gaming app development companies have increased the demand for 3D game engines as they offer user-friendly features and robust debugging. Besides, 3D rendering has become sought-after to provide a realistic gaming experience with facilities, including animation, scripting, AI, memory management, networking, and streaming.

The others segment includes 4D and 5D game engines, among others. This segment is anticipated to grow at the highest rate over the forecast period due to the trend of gamers demanding modern video games with significantly more immersion than regular 3D video games. Such game engines require powerful hardware to support the addition of extra dimensions. Moreover, the segment is expected to grow as the 4D and 5D game engines are predicted to help deliver the next generation of video games.

Platform Insights

The mobile segment held the largest share of over 40.0% in 2021 and is also expected to expand at the highest CAGR over the forecast period. Mobile devices are widely available globally and are also strongly penetrating rural areas, which has increased the access of users to the platform. The trend of free-to-play games on the mobile platform pushes the demand for game engines as developers can add advertisement support to the video game to make revenue. Lastly, the ease and convenience of downloading video games on the mobile platform have increased due to the availability of affordable internet data packs.

The console segment is predicted to grow at a rate of 16.84% during the forecast period, mainly due to reliable software quality and easy-to-use features. Some factors, such as more portability, enhanced user experience, longevity, and minimal maintenance, have solidified the position of console gaming. Developers create high-quality and open-world games on game architectures for consoles such as Microsoft Corporation’s Xbox and Sony Inc’s Playstation as they have the resources to run them smoothly and at high frame rates. Moreover, seamless user experience and reduced cost have augured well for major players gearing to foster their portfolios. Prominently, gamers have exhibited an increased demand for the console with advanced graphics, triggering the demand for gaming consoles across emerging and advanced economies.

Regional Insights

Asia Pacific accounted for the largest market share of over 45.0% in 2021 due to the strong trend of playing and creating video games and the high penetration of mobile platforms in the region, which has provided promising growth opportunities to the market. The growth is mainly attributed to the gaming disruption witnessed across China, India, Australia, and Japan. Game engine service providers are expected to observe an increased consumer demand and low-barrier entry for low-cost alternatives and innovations. For instance, in August 2022, Unity announced a deal valued at USD 1 billion with leading partners to form “Unity China,” a new Joint Venture. It could underpin Unity’s portfolios in gaming, and the JV will focus on building custom versions of its core products for game developers. Moreover, gaming consoles, PCs, and cloud-based games will complement the disruption across the region, boding well for stakeholders.

The Middle East and Africa region is anticipated to record the highest CAGR of 19.54% from 2022 to 2030. The game engine industry proliferates in the Middle East and Africa region, with rising demand and investment in locally developing video games. Countries in the region are helping grow the market by partnering with or acquiring globally established video game companies or distributors. For instance, the Saudi Public Investment Fund acquired 8% shares of Embracer Group, a European video game distribution company, for USD 1 billion. This acquisition falls in line with the Saudi government’s aim to bring the video games and development industry to Saudi Arabia by 2030.

Key Companies & Market Share Insights

The competitive landscape highlights the industry dynamics reshaping the global market. Incumbent companies and new entrants anticipate organic and inorganic growth strategies, such as product launches, mergers & acquisitions, geographical expansion, technological advancements, and geographical expansion, to remain pronounced in the ensuing period. Lately, gamification has gained ground across the automotive, bank, and financial sectors to foster customer experience.

Key companies are investing significant revenue in acquisitions and the development of modern technologies. For instance, in April 2022, Sony announced pouring USD 1 billion into Epic Games to bolster its relationship in the metaverse space. Additionally, in 2020, Sony, Inc. is reported to have injected USD 250 million into Fortnite video game and Unreal Engine maker, Epic Games, for a 1.4% stake. Sony, Inc. followed up by investing another USD 200 million in Epic Games in April 2021. These investments help game engine companies expand and offer game development engines for free. Some prominent players in the global game engines market include:

• Unity Software, Inc.

• PixiJS

• Unreal Engine (Epic Games)

• Cocos Engine (YAJI Software)

• Godot

• YoYo Games Ltd. (GameMaker Studio 2)

• RPG Maker (DEGICA Co., Ltd.)

• Buildbox (AppOnboard, Inc.)

• Marmalade SDK

• Crytek GmbH

• Solar2D LLC

• The Game Creators Ltd. (AppGameKit)

• GameSalad

• Gamua GmbH

• MonoGame

• libGDX

• Urho3D

• Stencyl, LLC

• GDevelop Ltd.

• Gideros

• Open 3D Engine

Game Engines Market Report Scope

Global Game Engines Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global game engines market report based on component, type, platform, and region:

• Game Engines Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Solution

  • Services

• Game Engines Type Outlook (Revenue, USD Million, 2018 - 2030)

  • 2D Game Engines

  • 3D Game Engines

  • Others

• Game Engines Platform Outlook (Revenue, USD Million, 2018 - 2030)

  • Mobile

  • Console

  • Computer

  • Others

• Game Engines Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa