Now more than ever, gaming is at the heart of the entertainment business. The way consumers engage with and through games is constantly changing. Not only does this result in more overall engagement, but it also leads to entirely new segments of game enthusiasts. There are now more than 2.5 billion gamers across the world. Combined, they spend $152.1 billion on games in 2019.
Mobile gaming will generate revenues of $95.4 billion in 2022 and account for almost half of the entire games market. This will be driven predominantly by smartphone, with revenues of $79.7 billion by 2022. Although mobile is indeed still the world’s fastest-growing games market segment, growth is slowing in mature markets such as North America, Western Europe, and Japan
The global gaming industry is expected to register a CAGR of 12% during the forecast period 2020–2025.
Though people have been talking about it for years now, it is now inevitable that virtual reality will become a major cornerstone piece of the gaming industry. By 2020, players will spend USD 4.5 billion on immersive gaming. It is 20 times more enjoyable and convenient than traditional alternatives. Companies like BigScreenVR and AltSpaceVR are two of the leaders in this industry today, accelerating a virtual future perhaps faster than many expect market.
- Also the collision of blockchain technology and gaming holds great promise for the growth of industries. Blockchains provide a useful tool for gamers for various reasons including decentralized asset exchanges, verifiable scarcity of virtual objects and collectibles, fast and secure payment networks, and an ability for developers to properly monetize their creations.
- Rising internet penetration is driving the demand of the market. The number of people with access to the internet in emerging markets has grown dramatically in the past years, due to the global expansion of Chinese smartphone manufacturers offering affordable smartphones and local government investment in mobile internet infrastructure. GlobalWebIndex’s data also indicates that more than 1 billion people around the world now stream games over the internet each month. The latest numbers indicate that almost a quarter of all internet users, more than 1 billion people watch livestreams of other people playing games each month.
- Platforms such as e-sports betting and fantasy sites have attracted more investments, which is driving the market. Approximately one-third of the e-sports fans in the United States (SPY) participate in online amateur tournaments. Because there is immense potential in this segment, Activision (ATVI) and Electronic Arts (EA) are looking to increase market penetration. Asia and Europe remains a huge market for these companies.
- However, the issues such as piracy, laws and regulations, and concerns relating to fraud during gaming transactions are expected to hamper market growth, which is a key restraint for the market.
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