Video Game Market Size, Share, Analysis, Trends, Growth, 2032

Video Game Industry Prospective:

The global video game market size was worth around USD 219 billion in 2023 and is predicted to grow to around USD 712 billion by 2032, with a compound annual growth rate (CAGR) of roughly 14.0% between 2024 and 2032.

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Video Game Market: Overview

An electronic game played by interacting with a user interface or input device—such as a keyboard, joystick, controller, or motion sensor—that produces visual feedback from a display device is known as a "computer game". A computer game might also be referred to as a "video game."

On a computer monitor, television, flat-panel display, touchscreen on handheld devices, or virtual reality helmet, these gadgets are commonly seen in video format. Most modern video games are audiovisual, with audio complements from speakers or headphones and occasionally other sensory input (like haptic technology that offers tactile sensations). Haptic technology, for instance, creates tactile feelings. Many video games also provide webcam and microphone inputs, letting players livestream and communicate inside the game.

Key Insights

• As per the analysis shared by our research analyst, the global video game market is estimated to grow annually at a CAGR of around 14.0% over the forecast period (2024-2032).
• In terms of revenue, the global video game market size was valued at around USD 219 billion in 2023 and is projected to reach USD 712 billion by 2032.
• Expanding gaming demographics are expected to drive the video game market over the forecast period.
• Based on the device, the mobile segment is expected to hold the largest market share over the forecast period.
• Based on the type, the online segment is expected to dominate the market expansion over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

Video Game Market: Growth Drivers

Rising mobile gaming across the globe drives market growth

A major element driving the explosive growth of the video game market is the continually rising frequency of the use of smartphones, which, in combination with improvements in mobile internet connectivity, is making gaming available to a wider public. Industry statistics show that ranging from 5.35 billion users in 2024 to 7.9 billion users in 2029, internet usage is predicted to rise by 47% in just five years. This marks a notable rise in the number of users at this present level.

The Global Web Index claims that users' age group determines the time they spend on the internet. Still, people spend an average of 6.5 hours per day utilizing the internet. In terms of perspective, those between the ages of 16 and 24 spend an extra 2.5 hours more time online than those between the ages of 55 and 64.

While just 65% of those aged 25 and above have access to the Internet, 75% of adults between the ages of 15 and 24 have it. Regarding Internet access, there is a rather big difference. The several parts of the planet differ greatly from one another. The United States Census projects that around 322, 563, 519 people will have an Internet connection as of 2024. This explains close to 95% of the United States of America's total global population. Furthermore, this is greatly driving the statistics of the gaming industry forward.

Video Game Market: Restraints

Rising game prices & consumer spending concerns hinder market growth

Both game producers and players are now quite concerned about the rising price of video games. Higher game pricing is caused by several factors that influence consumer behavior and market expansion in general.

AAA games now frequently cost over $100 million to make, owing to their advanced graphics, artificial intelligence, and open-world settings. Wages, hardware parts, and marketing costs have all been affected by inflation. Major publishers have increased the typical game pricing from $60 to $70 (PlayStation, Xbox) to make up for this.

Additionally, businesses sell deluxe, gold, and ultimate editions for between $90 and $120+. DLCs and paid expansions raise the total cost of a full game experience. Therefore, growing game prices & consumer spending concerns are hampering the video game market.

Video Game Market: Opportunities

The emergence of the 5G network offers a lucrative opportunity for market growth

The number of gamers worldwide increased even more with the introduction of the 5G network. To obtain a competitive advantage, major market companies have made significant moves in this direction. AT&T and NVIDIA Corp. announced their partnership in January 2022 to provide premium 5G cloud gaming experiences. Users will be able to play about 100 free-to-play games and their games on well-known PC game retailers like the Epic Games Store, Steam, Ubisoft Connect, Origin, GOG, and others, thanks to this effort.

Gamers will be able to experience a virtual world due to the realistic, cutting-edge graphics based on NVIDIA RTX technology and sophisticated AI capabilities. Thus, the emergence of the 5G network offers a lucrative opportunity to the video game industry.

Video Game Market: Challenges

Cybersecurity and cheating issues pose a major challenge to market expansion

Developers, publishers, and players are increasingly worried about cybersecurity concerns and cheating as the video game industry grows. These problems compromise the game's integrity, financial stability, and player enjoyment. Targeting user accounts on services including Xbox Live, PlayStation Network (PSN), and Steam, hackers often use Phishing attacks to fool people into revealing login details, therefore compromising accounts and in-game objects.

Attacks using malware and ransomware endanger personal data and game companies' security. Third-party devices (like Cronus Zen & XIM Apex) also allow console cheating by lowering recoil and improving aim help. The cybersecurity and cheating issues pose a major challenge for the video game market.

Video Game Market: Report Scope

Video Game Market: Segmentation

The global video game industry is segmented based on device, type, and region.

Based on the device, the global video game market is bifurcated into console, mobile, and computer. The mobile segment is expected to hold the largest market share over the forecast period. Growing internet penetration worldwide and the increasing number of cell phones are generating great potential for mobile gaming.

Technological advancements in terms of smartphone gaming hardware, in addition to their convenience, accessibility, and availability of low-cost alternatives, have helped mobile games become more and more popular worldwide, motivating gamers to change from consoles and pre-installed PC games to smartphone gaming.

Furthermore, the popularity of mobile gaming among young people is likely to present profitable prospects for the mobile device market. For instance, the Techpenny 2023 statistics show that the average age of mobile gamers is 36.3 years. Moreover, 86% of Generation Z—born between 1997 and 2012—play video games on their mobile devices.

Based on the type, the global video game industry is bifurcated into online and offline. The online segment is expected to dominate the market expansion over the projected period. Increased internet penetration, the expansion of the online casual gaming market, and the growing appeal of Free2Play (F2P) and massively multiplayer online (MMO) games are the main drivers of this segment's growth.

The industry is expanding as a result of technological developments, including mixed reality (MR), virtual reality (VR), and augmented reality (AR). Additionally, the expansion of the online gaming market is aided by the popularity of multiplayer games and esports competitions.

Video Game Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global video game market during the projected timeline. The Entertainment Software Association estimates that more than 65% of Americans play video games, with over 212.6 million players every week. This counts 25% of gamers over 45 and 26% of players under the age of eighteen. Video games are extremely popular in the region, so the market is expanding.

A strong concentration of big video game producers and corporate behemoths like Amazon Web Services, Inc., Apple Inc., Google LLC, Microsoft Corp., and NVIDIA Corp. helps its growth even more. These companies focus on corporate development initiatives like product introductions, strategic alliances, and increasing their presence. Thus driving the video games market growth in the region.

Video Game Market: Competitive Analysis

The global video game market is dominated by players like:

• Tencent Holdings Ltd.
• Activision Blizzard
• Apple Inc.
• Disney
• Electronic Arts Inc.
• Microsoft Corp.
• Rovio Entertainment Corporation
• Lucid Games
• Nintendo
• Sony Interactive Entertainment Inc.

The global video game market is segmented as follows:

By Device

• Console
• Mobile
• Computer

By Type

• Online
• Offline

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa