Video Games Market
Video Games Market By Game Type (Action, Adventure, Arcade, Sports, Strategy, Role-Playing Video Games), By Hardware (Handheld Console, Static Console), By Physical Platform (Computer, Console) By Digital Platform (Online, Mobile, Virtual Reality) & Regional Forecast to 2031
Video Games Market Outlook
The video games market registered soaring growth in 2021 with worldwide revenues up by nearly a tenth each year. A new forecast by Fact.MR estimates that video games revenues will more than triple between 2021 and 2031, reaching US$ 510 Bn with a CAGR of almost 13%.
Mobile video games have gained high traction, capturing nearly 50% market share of video gaming industry, while immense popularity of the PlayStation has bolstered the market demand for gaming consoles.
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Key Points Covered in Video Games Industry Survey:
- Market Estimates and Forecasts 2016-2031
- Key drivers and restraints shaping market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Video Games Market and How to Navigate
- Recommendation on Key Winning Strategies.
Sales Analysis of Video Games during 2016-2020 Vs Future Outlook for 2021 to 2031:
The global video game market size surpassed nearly US$ 151 Bn, registering nearly 8% CAGR from 2016 to 2020. Technological advancements such as virtual reality, the global video games industry has offered a plethora of expansion opportunities for major developers.
Based on type, online gaming exhibits massive potential for growth in the upcoming future. Gone will be the days of purchasing game cassettes and CD’s during a specific holiday season. Online subscriptions have enabled unlimited streaming of online games by professionals, a trend which will majorly stimulate demand.
Manufacturers are highly likely to concentrate their operations across the emerging markets in the Asian region- with India, South Korea, China and Japan emerging as major gaming hubs in forthcoming years. Based on aforementioned trends, it is expected that the global market for video games will surge at a whopping 13% CAGR from 2021 to 2031.
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How have Technological Advancements Shaped Video Games Demand?
Sports games or more popularly e-sports have cemented the way for a new phenomenon in the video games industry. With the rapid advances in processing units used in gaming consoles, the demand for video games across the world has multiplied manifold.
Besides, with developments in computer graphic techniques, video games bring a feeling of more immersive experiences for gamers. These advances have been so massive that experts suggest gaming technology is no longer a constraint but an enabler in the rapid growth of the market globally.
Why is Increased Smart Device Ownership Bolstering Video Games Sales?
With smartphones and other devices usage at an all-time high, video gaming has never been so convenient, easy and affordable. Widespread technological advancements have made it possible to access video games at out fingertips. Advanced graphics provide a real-time experience for all users.
Amongst all smart devices, mobile gaming has emerged as the most popular. Easy accessibility and greater affordability are attributed as chief drivers behind increased smartphones usage. Sales of mobile video games especially spiked amidst the COVID-19 pandemic, as stay-at-home directives prompted people to increase more screen time.
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How is the U.S Emerging as a Video Games Hub?
The U.S market was estimated nearly US$ 43 Bn in 2020, and is expected to register a CAGR of around 11% during the forecast period. Espousing gaming platforms, such as E-sports, drives the market in the country.
Furthermore, with the arrival of cloud gaming and expanding internet penetration in the country, which is approximately 94% as of May 2020, according to the International Telecommunication Union, has further increased the average time spent across digital media by an adult. These factors are driving the digital gaming market in the country.
Why is the Video Games Industry Flourishing in China?
The mobile gaming market in China is presently the most popular gaming market in the world, and is one of the most lucrative. In 2020, China's mobile gaming revenues cultivated by 31% to value nearly US$ 30 Bn.
Moreover, technical innovations, expanding market demographics, and an increase in video game-related merchandise have all contributed to the video game industry's new scope.
China retains its position as the world’s largest gaming market in 2020 with 55% of the total global players. Sales especially picked up pace in the post-pandemic period, registering over 15% gain in Q3 2020, racking up US$ 10.4 billion in revenue.
Why are Mobile Video Games Likely to Remain Top Selling?
Mobile video games have gained high traction by leaving behind gaming console and PC games way back in past few years. Furthermore, it dominates the gaming industry with nearly 55% share, reaching US$ 162 Bn in 2020.
Moreover, it is projected to grow with a CAGR of 11% and the market value is likely to nearly double by 2031 end. With the growing strength of streaming (supported by 5G), cloud gaming services, and mobile esports, most gamers will embrace mobile gaming in the next few years.
How has Virtual Reality Changed the Gaming Industry?
Despite being a fairly new industry, the demand for virtual reality is growing fairly well, counting within the video gaming segment, which allows gamers to transport themselves to different worlds.
The virtual reality gaming space is expanding its professional value with the assistance of new innovations. Awareness of state-of-the-art VR accessories, such as headsets, bodysuits, and gloves, is rapidly growing amongst players. A CAGR of around 10% is projected for this segment.
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.
- In June 2016, Tencent has announced the acquisition of 85% ownership of Supercell, the massively profitable Finnish firm behind hit game Clash of Clans, for around US$ 8.6 Bn.
- In March 2021, Microsoft finalized its US$7.5 Bn deal to acquire ZeniMax Media, the parent company of Doom and Fallout studio Bethesda Softworks. The finalization comes just a day after Microsoft secured regulatory approval from the EU for the acquisition, and it will now bolster the company’s first-party Xbox games studios up to a total of 23.
Market size value in 2020
USD 151 Billion
Market forecast value in 2031
USD 510 Billion
CAGR of 13% from 2021 to 2031
Historical Data Available for
|US$ Mn for Value & ‘000 Units for Volume|
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Segments Covered
- Action Video Games
- Adventure Video Games
- Arcade Video Games
- Casual Video Games
- Children’s Entertainment Video Games
- Strategy Video Games
- Sports Video Games
- Shooter Video Games
- Role-Playing Video Games
- Racing Video Games
- Handheld Console Video Games
- Static Console Video Games
- Video Gaming Accessories
- Computer Video Games
- Console Video Games
- Online Video Games
- Mobile/Tablet Video Games
- Handheld Video Games
- Virtual Reality Video Games
- FAQs -
As of 2021, the market for video games is estimated to reach US$ 68 Bn
From 2016 to 2020, sales of video games expanded at approximately 8% CAGR
From 2021 to 2031, demand for video games is expected to surge at approximately 13% CAGR
Incorporating technologies like AI and VR to increase more life-like gaming experience are likely to transform Video games market across key industries.
Increasing number of internet users and high investments in gaming industry are the prominent demand driver for the market.
The Asian video games market is projected to register a CAGR of nearly 12% during the forecast period.
According to Fact.MR, sales of video games in the U.S amounted to US$ 43 Bn in 2020
As of 2020, China accounted for over 3 out of 10 sales of the global video games industry
Disney Interactive Studios, Vivendi SA, Supercell Oy, Ubisoft Entertainment SA, Electronic Arts Inc., Microsoft Corporation, Sony Corporation, NVIDIA Corporation, Nintendo Co. Ltd. are prominent Video Games producers included in the report.
By digital platform, sales of mobile/tablet video games are expected to surge at a CAGR of 11% until 2031
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
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