Video Games Market

Video Games Market Analysis By Game Type (Action, Adventure, Arcade, Sports), By Hardware (Handheld Console, Static, Video Gaming Accessories), By Physical Platform (Computer, Console), By Digital Platform (Online, Mobile/Tablet, Handheld, Virtual Reality) and By Region- 2022 to 2032

Analysis of Video Games market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Video Games Market Outlook (2022-2032)

The global market for video games reached a valuation of around US$ 170.53 Billion in 2021 and is slated to accelerate at a CAGR of 13% to top US$ 650 Billion by 2032. Developments in technology and continued innovation in both hardware and software to improve the real-time rendering of graphics are likely to drive the growth of the market throughout the conjecture period.

Mobile video games have gained high traction, capturing nearly 50% market share of the video gaming industry, while the immense popularity of the PlayStation has bolstered the market demand for gaming consoles.

Report Attributes


Video Games Market Size (2022)

US$ 192.59 Billion

Projected Market Value (2032F)

US$ 650 Billion

Global Market Growth Rate (2022-2032)

13% CAGR

Asia Pacific Market Share (2022)


North America Market Share (2022)


Market Share of mobile video games (2022)


Key Companies Profiled

  • Activision Blizzards Inc.
  • Nintendo Co. Ltd.
  • NVIDIA Corp.
  • Sony Corp.
  • Microsoft Corp.
  • Electronic Arts Inc. (EA)
  • Ubisoft Entertainment SA
  • King Digital Entertainment Plc.
  • Supercell Oy
  • Take-Two Interactive
  • Vivendi SE
  • Konami Holdings Corporation
  • Disney Interactive Studios
  • THQ Nordic GmbH
  • Sega Corporation

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Video Games Demand Analysis (2017-2021) in Comparison to Market Estimations (2022-2032)

The global video game market size surpassed nearly US$ 170.53 Billion, registering nearly 11% CAGR from 2017 to 2021. Technological advancements such as virtual reality, and 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 CDs during a specific holiday season. Online subscriptions have enabled unlimited streaming of online games by professionals, a trend that will majorly stimulate demand.

Manufacturers are highly likely to concentrate their operations across emerging markets in the Asian region- with India, South Korea, China, and Japan emerging as major gaming hubs in forthcoming years. Based on the aforementioned trends, it is expected that the global market for video games will surge at a whopping 13% CAGR from 2022 to 2032.

How have Technological Advancements Shaped Video Games Demand?

Emerging Popularity of PlayStations and Mobile Games to Proliferate the Demand for Video Games

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.

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Why is Increased Smart Device Ownership Bolstering Video Games Sales?

Enhanced Mobile Hardware Boosts the Excellent Gaming Experience

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 our 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 smartphone usage. Sales of mobile video games especially spiked amidst the COVID-19 pandemic, as stay-at-home directives prompted people to increase screen time.

How Crucial is Development in the Video Games Market for Start-Ups?

Integration of Virtual Reality in the Creation of New Games has amplified the Popularity of Video Games

The mobile technology boom in recent years has transformed the industry and opened the doors to a new generation of gamers. Owing to the emerging popularity of online gaming, several new players are entering the industry with the integration of cutting-edge technology for an enhanced gaming experience.

For instance :

  • Founded in 2016, Scopely is a mobile game developer focusing on the development of casual games. The company focuses on the development of puzzle and role-playing games, including "Yahtzee with Buddies", "Scrabble", "MARVEL Strike Force" and "The Walking Dead - Road to Survival." The games are available for Android and iOS users. It monetizes through in-app ads and purchases. Since its foundation, the company has garnered overall funding of US$ 999 Million.

The future of gaming is all about the latest trends, integration, and innovation. The new platforms are just going to make it more entertaining. Emerging popularity has skyrocketed the sales of the mobile gaming industry and is predicted to witness tremendous growth over the coming years.

  • Established in 2012, Improbable is a platform offering distributed simulation software for video games and corporate sectors. The platform offers a cloud-based computing solution that enables game developers to create, run, and operate online games. Also, allow developers to write code using any simulation software and distribute their code across multiple machines.

Which Regional Market is catching the Attention of Video Games Suppliers?

Integration of Artificial Intelligence & Emergence of New Gaming Companies Will Further Expand the Regional Share

In terms of revenue contribution, prominent regions like the Asia Pacific and North America are the major contributors accounting for the highest share. The proliferation of smartphones, the mounting internet penetration rate, and the easy accessibility of games on the internet are likely to contribute to the growth of these market

In 2022, the Asia Pacific dominated the market; accounting for nearly 42% share of the global revenue collection. The surfacing of China as a primary gaming hub endorsed the regional market to govern the overall market. The persistent increase in the smartphone penetration rate in China is propelling the growth of the regional market. Tencent Holdings Limited of China aroused as the largest player in the global video game market due to its inorganic growth strategies, such as the acquisition of Riot Games and Supercell Oy, which the company has been pursuing aggressively.

The mounting number of online gamers and the burgeoning popularity of online gaming tournaments in the Asia Pacific is encouraging market players to introduce platforms that can potentially allow gamers to access AAA games. For instance, in December 2021, Tencent Holdings Limited partnered with NVIDIA Corporation to launch START, a new cloud gaming service, to allow gamers to access AAA games on underpowered devices. South Korea is expected to contribute significantly to the growth of the regional market owing to the rising popularity of e-sports and massively multiplayer online games in the country.

Other regions are also gaining significant market share, backed by the emerging craze for mobile video games and the popularity of PlayStation (PS) among adults looking for an exceptional gaming experience embedded with advanced graphics and tools.

Country-wise insights

How is the U.S Emerging as a Video Games Hub?

The U.S market was estimated at nearly US$ 43 Billion in 2021 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, the arrival of cloud gaming and expanding internet penetration in the country, which is approximately 94% as of May 2021, 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 in the world and is one of the most lucrative. In 2021, China's mobile gaming revenues cultivated by 31% to a value of nearly US$ 30 Billion.

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 2021 with 55% of the total global players. Sales especially picked up pace in the post-pandemic period, registering over a 15% gain in Q3 2021, racking up US$ 10.4 billion in revenue.

Category-wise Insights

Why are Mobile Video Games Likely to Remain Top Selling?

Mobile video games have gained high traction by leaving behind gaming consoles and PC games way back in past few years. Furthermore, it dominates the gaming industry with nearly 55% share, reaching US$ 162 Billion in 2021.

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 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.

Blockchain-based gaming

With powerful data encryption techniques, gaming is set to become secure from hackers and middle-way thefts in online transactions. The technology is likely to make in-game purchases even safer and more frequent. It’s anticipated that by end of 2023 people will make USD 200 Billion worth of in-game purchases.

Metaverse Gaming

Since the debut of video games on Metaverse has become hype, many gaming studios and companies have started carving the first game in Metaverse. The market in Metaverse games is anticipated to cross a valuation of USD 710.21 Billion by 2027. NFT sales in 2021 amounted to USD 25 Billion from USD 94.9 Million in the previous year 2020. This is anticipated to increase in the forecast period owing to rising virtual reality in Metaverse gaming.  NFT also initiated the “play to earn” (P2E) model which encourages people to play games by offering financial incentives.

Competitive Landscape

Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.

  • In January 2022, Microsoft Corp. announced plans to acquire Activision Blizzard Inc., a leader in game development and interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse.
  • In February 2022, Nintendo Co. Ltd continues its development expansion with the acquisition of long-time partner SRD. The deal is the latest step in Nintendo’s plan to expand its internal development capabilities.
  • In June 2021, Tencent announced the acquisition of 85% ownership of Supercell, the massively profitable Finnish firm behind the hit game Clash of Clans, for around US$ 8.6 Billion
  • In March 2021, Microsoft finalized its US $7.5 Billion 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.

Key Segments in Video Games Industry Research

  • By Game Type :

    • Action
    • Adventure
    • Arcade
    • Casual
    • Children’s Entertainment
    • Strategy
    • Sports
    • Shooter
    • Role-Playing
    • Racing
  • By Hardware :

    • Handheld Console
    • Static Console
    • Video Gaming Accessories
  • By Physical Platform :

    • Computer
    • Console
  • By Digital Platform :

    • Online
    • Mobile/Tablet
    • Handheld
    • Virtual Reality
  • By Region :

    • North America
    • Latin America
    • Europe
    • Japan
    • APEJ
    • Middle East & Africa

- FAQs -

What is the expected closing market value for Video Games in 2032?

By 2032, the Video Games landscape is slated to reach a valuation of US$ 650 Billion.

How will the Asia pacific market for Video Games flourish until 2032?

As per Fact.MR’s projections, the market for Video Games in the Asia Pacific will likely expand at a 42% CAGR.

Which is the most preferred Hardware Type for Video Games?

Based on Hardware, the handheld segment for sales of Video Games captures the highest share, documenting a 12.5% value CAGR.

By Digital Platform type, which segment is likely to experience the fastest growth rate?

The Mobile gaming segment is expected to grow the fastest, at a CAGR of ~13%.

At what percentage will the industry expand during the 2022-2032 period of assessment?

From 2022 to 2032, the Video Games industry is poised to flourish at a 13% CAGR.

At what value will the Video Games market close in 2022?

As of 2022, Fact.MR expects the Video Games industry to be valued at US$ 192.59 Billion.

From 2017-2021, what was the documented growth rate for the Video Games market?

According to Fact.MR, a CAGR of 11% was recorded for the Video Games market from 2017-2021.

What was the market worth for Video Games in 2021?

As of 2021, the Video Games market was valued at US$ 170.53 Billion.

Video Games Market

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