The global video games market is anticipated to add more three times the value by 2031.
The video games revenues will more than triple between 2021 and 2031, reaching $510bn with a CAGR of almost 13% and by 2022 revenues are likely to reach $140bn, according to the latest intelligence report published by ESOMAR-certified market research and consulting firm Fact MR.
Historically, from 2016 to 2020, video games sales witnessed impressive growth, registering a CAGR of around 8% to top $151bn by the end of the said period. Sales have especially catapulted amidst the Covid-19 pandemic, with online video games anticipated to be the fastest-growing segment over the forecast period.
The global video games market is anticipated to add more than three times the value by 2031, and mobile/tablet video gaming is likely to account for 55% revenue, reaching $162bn by 2020.
The US market was estimated at nearly $43nn in 2020, and is expected to register a CAGR of around 11% during the forecast period. Based on hardware, handheld consoles to contribute $60bn in revenue by 2022-end.
The mobile gaming market in China is presently the most popular gaming market in the world. In 2020, China’s mobile gaming revenues cultivated by 31% to value nearly $30bn, whereas India is likely to be a lucrative market, attributed to increasing smartphone adoption.
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advances for cancer screening, mergers, and acquisitions. In June 2016, Tencent announced the acquisition of 85% ownership of Supercell, the massively profitable Finnish firm behind the hit game Clash of Clans, for around $8.6bn. In March 2021, Microsoft finalised its $7.5bn deal to acquire ZeniMax Media, the parent company of Doom and Fallout studio Bethesda Softworks. The finalisation 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.
The advent of online streaming and adoption of VR in gaming are amongst the prominent factors for market growth. Furthermore, the rapid growth in internet users is propelling the global revenue gathering. In 2020, Asia dominated the market with nearly 55% revenue and is predicted to witness substantial growth in the forthcoming years.
According to the report, prominent video game developers are increasingly focusing on providing highly sophisticated interface experiences by including advancements such as AI, VR and augmented reality, which will spur numerous innovations in forthcoming years.