Consumer Goods

Gaming Market is Expected to Reach USD 510.54 Billion by 2031

Mar 2024

Consumer Goods

As per the report published by Kings Research, the global Gaming Market was valued at USD 255.21 billion in 2023 and is projected to reach USD 510.54 billion by 2031, growing at a CAGR of 9.20% from 2024 to 2031.

The rise in popularity of Esports is driving the expansion of the gaming industry. Esports competitions and leagues draw significant crowds and provide channels for brand collaborations, endorsements, and promotional activities. As Esports gains more traction, game developers can introduce fresh and inventive games tailored for competitive gaming, enabling them to access a profitable market and build a devoted fan base. Furthermore, sponsors can connect with a broad and attentive audience through diverse branding prospects like in-game promotions and logo showcases during competitions. Organizers of events can profit from the growth of Esports by hosting and managing tournaments, generating income from ticket sales, merchandise, and broadcasting privileges.

Additionally, cloud gaming platforms are playing a crucial role in the growth of the gaming market. Cloud gaming eliminates the need for to invest in expensive gaming hardware, making gaming more accessible to a wider audience. This shift opens up new possibilities for sponsors to reach even larger and more diverse demographics, as cloud gaming platforms attract a broad range of players. Furthermore, the convenience and flexibility of cloud gaming allow for seamless integration of in-game advertisements and branding opportunities, creating a new avenue for sponsors to engage with gamers and maximize their brand exposure.

Key Insights

  • By game type, the shooter segment held a significant revenue share of 35.68% in 2023
  • By device type, the mobile phone segment generated a notable revenue share of 48.65% in 2023
  • By end user, the male segment accounted for a substantial revenue share of 58.35% in 2023
  • In terms of region, Asia Pacific held the largest market share of 35.26% in 2023

Electronic Arts Joined Forces with Marvel to Establish a New Video Game Studio in Seattle

July 2023: Electronic Arts (EA) launched a Seattle-based studio named Cliffhanger Games. The primary focus of Cliffhanger Games is to develop an exclusive single player game featuring the renowned Marvel superhero, the Black Panther.

Rising Popularity of Online Gaming Fuels Market Expansion

Online gaming has emerged as a significant factor driving the growth of the gaming industry. The ability to engage in online gameplay with friends and fellow gamers from different parts of the world has greatly enhanced the social aspect of gaming. The presence of online gaming platforms, multiplayer games, and in-game transactions plays a vital role in boosting the revenue generated by the gaming market. The advent of online gaming platforms such as Steam, Xbox Live, and PlayStation Network has made it convenient for gamers to connect and enjoy gaming sessions together. Multiplayer games such as Fortnite, Call of Duty, and League of Legends have gained global recognition, attracting millions of players and fostering a strong sense of community. Moreover, the introduction of in-game purchases, encompassing cosmetic items, loot boxes, and downloadable content (DLC), brings in additional sources of income for game developers, ultimately propelling the growth of the gaming market.

Integration of Virtual Reality (VR) And Augmented Reality (AR) In Gaming to Drive Market Growth

The integration of VR and AR technologies in gaming offers immersive and interactive experiences for players. VR provides a fully immersive environment, while AR overlays virtual elements onto the real world. The adoption of VR and AR in gaming presents promising growth opportunities for game developers to create unique and engaging experiences. These technologies allow players to step into virtual worlds and interact with them that were previously impossible. With VR, players have the sensation of being immersed in the game, experiencing sights and sounds as if they were physically present. The ability to move and explore these virtual environments adds a whole new level of immersion and excitement to gaming. AR, on the other hand, adds virtual elements to the real world, blending the line between fantasy and reality. This opens up endless possibilities for game developers to create innovative gameplay mechanics and storytelling techniques.

Asia Pacific to Dominate the Gaming Market with a CAGR of 7.61%

Based on region, the global gaming market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The dominance of the region can be attributed to the thriving gaming industry in countries such as China, Japan, and South Korea, where gaming has become a significant part of the culture. Additionally, the region's large population and increasing disposable income have fueled the demand for gaming products and services. With technological advancements and the rise of mobile gaming, Asia Pacific is expected to maintain its leading position in the global gaming market in the coming years.

Companies Focusing On Product Launches and Collaborations to Fulfill Consumer Demands

The global gaming market is fragmented with key players such as Blizzard Entertainment Inc., Ubisoft Entertainment, Nintendo, Electronic Arts Inc., Take Two Interactive Software Inc., Microsoft, Tencent Games, Rockstar Games, Inc., Activision Publishing Inc., and Unity Technologies. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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