The global gaming market size was valued at USD 97.80 billion in 2016 and is expected to witness remarkable growth over the next eight years. Technological proliferation and innovation in both hardware and software are expected to be key factors driving the market. Growing penetration of internet services across the globe, coupled with easy availability and access to games on the Internet, is also expected to keep growth prospects upbeat over the coming years.
Rising inclination to shift from physical games to online games has led industry participants to focus on hardware compatibility and efficiency. Free2Play (F2P), massively multiplayer online (MMO), and multiplayer games have progressively gained popularity, a trend that is anticipated to continue over the next eight years.
The trend of social media gaming is expected to have a positive impact on market growth. For instance, a substantial percentage of the global population uses social networking sites such as Facebook and Reddit to play games. Availability of games across different genres such as action, role play, simulation, and strategy are also influential in attracting customers.
Copyright and piracy issues are expected to negatively impact market growth. Concerns relating to fraud during gaming transactions are expected to hamper market growth. A steep rise in video game-related health issues and problems is further expected to restrain the market growth.
On the basis of device, the gaming market has been segmented into console, computer, and mobile devices. The console device segment dominated the market in 2016 and was valued at USD 36.65 billion. Advantages such as availability of high-end displays and sound systems that provide an improved and rich experience to customers are anticipated to drive segment growth over the forecast period.
The mobile device segment is expected to gain momentum owing to increasing smartphone penetration across the globe. Tablets are estimated to drive the growth of the mobile device segment owing to advantages such as larger displays and better viewing experience.
The online gaming segment is expected to gain traction over the forecast period. Increasing demand for multiplayer games is driving the demand for online games as they facilitate in-game communication and improve the overall experience. Social networking sites are influential in providing online games a virtual platform for expansion.
Market players involved in the development of gaming consoles are laying emphasis on capitalizing opportunities offered through online games. For instance, Xbox Live by Microsoft Corporation and PlayStation Network by Sony Corporation have gained much prominence through the online platform.
The Asia Pacific region dominated the global market in 2016 and accounted for more than 45% of the revenue. This can be attributed to the emergence of China as the ‘global gaming capital’ after it overtook the U.S. in 2016. Ever-increasing smartphone penetration and rising demand for entertainment in China is a key factor driving regional growth.
Tencent Holdings Limited, headquartered in China, has emerged as the biggest player in the global market owing to its inorganic growth strategies, such as the acquisition of Riot Games and Supercell Oy, developers of popular games such as League of Legends and Clash of Clans. The company’s growth is a significant factor driving overall growth in China.
South Korea is expected to contribute significantly to regional growth owing to its increased focus on e-sports and massively multiplayer online games. The South Korean market size was valued at USD 4.20 billion in 2016. Massively multiplayer online role-playing games have gained immense popularity in South Korea.
Key players operating in the market include Microsoft Corporation; Nintendo Co., Ltd.; Rovio Entertainment Corporation; NVIDIA Corporation; Valve Corporation.; PlayJam Ltd.; Bluestack Systems, Inc.; and Sony Corporation. These companies are largely focusing on development of engaging gaming content and next-generation gaming consoles.
Popular gaming consoles developed by these players include PlayStation 4 by Sony Corporation, Xbox One by Microsoft Corporation, and Wii U by Nintendo Co., Ltd. Market players are largely focusing on offering product differentiation and innovation with a view to increasing their market share.
Market players are laying significant emphasis on improving customer experience by offering products equipped with multi-utility features that enable users to play games and browse the Internet at the same time. These multi-utility gaming consoles are anticipated to drive market growth over the forecast period.
Attribute |
Details |
Base year for estimation |
2016 |
Actual estimates/Historical data |
2014 - 2016 |
Forecast period |
2017 - 2025 |
Market representation |
Revenue in USD Billion and CAGR from 2017 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Latin America, and MEA |
Country scope |
U.S., Canada, U.K., Germany, South Korea, Japan, China, Brazil |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2017 to 2025. For the purpose of this study, Grand View Research has segmented the global gaming market report on the basis of device, type, and region.
Device Outlook (Revenue, USD Billion, 2014 - 2025)
Console
Mobile
Computer
Type Outlook (Revenue, USD Billion, 2014 - 2025)
Online
Offline
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
Asia Pacific
China
Japan
South Korea
Latin America
Brazil
Middle East & Africa (MEA)
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
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