Global Video Gaming Market Outlook to 2030

Global Video Gaming Market Overview

• The global video gaming market was valued at USD 220 Bn in 2023, is driven by increasing popularity of mobile and online gaming, advancements in gaming technology, and the expansion of the gamer demographic, including both casual and professional gamers.
• Key players in the market include Tencent Games, Sony Interactive Entertainment, Microsoft Xbox, Nintendo, and Electronic Arts (EA). These companies lead due to their strong portfolios, innovative technologies, strategic partnerships, and substantial market presence.
• In 2023, Tencent Holdings made significant strides in expanding its global market share and product lines. It acquired Japanese game developer Visual Arts, known for galgame and visual novels, and introduced new product lines under Level Infinite. Geographically, Tencent invested in Lighthouse Games, a UK-based AAA studio from Playground Games, to support its forthcoming title.

Global Video Gaming Current Market Analysis

• APAC as dominant region: The APAC region leads the global video gaming market, driven by several key factors. A large, tech-savvy population in countries like China, Japan, and South Korea fuels strong demand for mobile and console gaming, with 1.29 billion mobile gamers in 2021. The region's robust infrastructure ensures fast internet connectivity, enhancing the online gaming experience. Additionally, a growing middle class, with a disposable income per capita of USD 8,200 in 2022, drives higher gaming expenditures. The prevalence of eSports and gaming tournaments attracts significant investments, while innovations in AR and VR position APAC as the leading hub for gaming.
• North America as emerging region: North America is emerging as the next promising region for the global video gaming market, driven by several key factors. The region boasts a high disposable income, with the United States' total personal disposable income reaching USD 21 Tn in 2023, and a strong consumer base with a growing interest in gaming. Technological advancements, such as the widespread adoption of 5G comprising 29% of all mobile connections in the region in 2023 and the increasing popularity of cloud gaming, are enhancing the gaming experience.
• China as dominant country: China has become the leading country in the global video gaming market, driven by its large and growing affluent population of over 685 million with a strong gaming interest across mobile and traditional platforms. Government support for the tech industry, along with advanced infrastructure for high-speed internet and 5G, further accelerates this growth. Major Chinese tech giants like Tencent and NetEase play a significant role, investing heavily in game development and acquisitions. Additionally, the rise of eSports and streaming platforms enhances the gaming culture, solidifying Chinas position as a powerhouse in the industry.

Global Video Gaming Market Segmentation

The Global Video Gaming Market can be segmented based on several factors:

By Platform: Global video gaming market segmentation by platform is divided into mobile, PC and console. In 2023, mobile gaming emerged as the most dominant segment of the global video gaming market, driven by widespread smartphone adoption and the growth of high-speed internet. The convenience of mobile platforms, along with the popularity of casual gaming and in-app purchases, reinforces mobile gaming's leading position.

By Technology: In the Global video gaming market segmentation by technology is divided into hardware and software. In 2023, software was the leading segment in the global video gaming market, driven by advancements in game engines, high-quality graphics, and immersive gameplay. The demand for sophisticated development tools and continuous content updates further fueled the growth of the software segment.

Global Video Gaming Market Competitive Landscape

• Microsoft Corporation Acquired Activision Blizzard: In October 2022, Microsoft Corporation completed its acquisition of Activision Blizzard for USD 75 Bn, significantly expanding its footprint in the gaming industry. Following this, Blizzard Entertainment announced the next three expansions for World of Warcraft, beginning with "The War Within" in 2024, marking the start of the Worldsoul Saga.
• Sony Interactive Entertainment Strategic Acquisitions: In August 29, 2022, Sony Interactive Entertainment announced the acquisition of Savage Game Studios, a mobile game development studio with offices in Helsinki and Berlin. Savage Game Studios joined the newly established PlayStation Studios Mobile Division, an independent entity from console development.
• NetEase, Inc. Partnership: In 2024, NetEase renewed its partnership with Microsoft (Blizzard) to re-launch Warcraft and other games in China. Also, a joint venture between Sandsoft Games from Saudi Arabia and NetEase Games was established to oversee game publishing, marketing, live operations, and esports activities in the MENA region.

Global Video Gaming Industry Analysis

Global Video Gaming Market Growth Drivers:

• Rise in Mobile Gaming: The proliferation of smartphones has significantly boosted the mobile gaming segment. In 2024, the number of smartphone users globally reached 4.9 Bn, with a substantial portion actively engaging in mobile gaming. This growth is driven by improvements in mobile technology, which enable more sophisticated and immersive gaming experiences on mobile devices.
• Growth of Cloud Gaming: The adoption of cloud gaming services has been a significant driver in the market. In 2024, cloud gaming subscriptions reached 50 Mn users. The convenience of accessing high-quality games without the need for expensive hardware is attracting a broad audience, and this trend is expected to add to the gaming industry.
• Expansion of Esports: Esports continues to grow as a major driver in the video gaming market. In 2024, the global esports audience was estimated at 540 Mn, with revenues from esports tournaments and related activities reaching USD 4.3 Bn. The increasing popularity of competitive gaming, sponsorships, and media rights deals are expected to further fuel the growth of esports.

Global Video Gaming Market Challenges:

• Cybersecurity Threats: Cybersecurity remains a critical challenge for the gaming industry. In 2024, there were over 150 Mn reported cyber-attacks on gaming platforms, resulting in financial losses. Ensuring the security of user data and maintaining trust in gaming platforms is essential to mitigate these threats and protect market revenue.
• High Development Costs: The cost of developing high-quality games has risen significantly. In 2024, the average cost to develop a AAA game was around $100 Mn. These high costs pose a challenge for game developers, especially smaller studios, as they require substantial investment and financial backing to produce competitive games. This financial barrier could hinder market entry and innovation.

Global Video Gaming Future Market Outlook

The Global Video Gaming market is expected to reach USD 360 Bn by 2029 driven by increasing penetration of 5G technology, the rise of cloud gaming services, and the expansion of the gaming audience across emerging markets. Additionally, innovations in virtual and augmented reality are expected to open new avenues for immersive gaming experiences.

Future Market Trends

• Growth of Subscription Gaming Services: Over the next five years, subscription gaming services like Xbox Game Pass and PlayStation Now are expected to see substantial growth. By 2029, these services are projected to attract more subscribers globally, generating revenue. The convenience and value offered by these subscriptions will drive their popularity among gamers.
• Expansion of the Metaverse: The integration of gaming into the metaverse will be a major trend in the coming years. By 2029, the metaverse gaming market is expected to show robust growth, driven by advancements in VR and AR technologies. This immersive virtual environment will create new opportunities for social interaction, gaming experiences, and in-game purchases, significantly boosting market revenue.