The global video games market size is valued at $188.73 billion in 2021 and is expected to grow from $199.74 billion in 2022 to $307.19 billion in 2029, exhibiting a CAGR of 6.3% during the forecast period. This market is expected to gain prominence as technological developments increase.

Fortune Business Insights™ mentioned this in their report titled, "Video Games Market, 2023-2029."

Key players featured in the research report:

Leading companies in the video game market are Sony Group Corporation (Japan), Microsoft (USA), Nintendo (Japan), Tencent (China), Activision Blizzard (USA), Electronic Arts (USA), Epic Games (USA), Take-two Interactive (USA), Ubisoft (France), and Bandai Namco Holdings Inc. (Japan).

Reporting Scope -

The report provides an extensive overview of the key factors and challenges influencing the market expansion during the forecast period. The market has been segmented into segments and regions and studied thoroughly. Estimates of growth rate and market share for each segment and region have also been documented. Furthermore, the report includes a section on company profiles that educates the reader on the strategic actions of leading companies, allowing them to make an informed decision.

Drivers and Restrictions -

Increased integration of advanced technologies will drive industrial expansion.

Games are increasingly integrating 3D, sound effects, high definition graphics, augmented reality (AR) and virtual reality (VR) making them more appealing. Video games today are highly realistic due to their high quality visual effects, sound effects and details. The shift towards user centricity and personalization is further contributing to the growth of the global video games market.

On the other hand, there are growing concerns that the promotion of violence in games will increase aggression among young people, posing challenges for companies operating in this sector.

What are the factors driving the application of video games market?

Technological advancements: The relentless rate of technological innovation is the main driving force behind video game applications. From high-definition graphics to virtual reality (VR) and augmented reality (AR), evolved technologies allow developers to create more immersive and visually stunning games. These technologies are not just for entertainment; they also find applications in areas such as training simulation and medicine.
Game consoles and platforms: The proliferation of game consoles and platforms such as Xbox, PlayStation, and PC gaming has expanded the scope of video games. These platforms provide a stable ecosystem for game developers to create and distribute their products, attracting a wide variety of gamers.
Mobile gaming: The advent of smartphones has allowed billions of people to enjoy gaming. Mobile gaming apps offer convenience and accessibility, making gaming a part of everyday life. This has opened new avenues for game developers and increased the diversity of gaming applications.
eSports and Competitive Gaming: eSports has emerged as a key factor in the video game market. Competitive gaming tournaments and leagues have not only turned professional gaming into a career, but have also fostered the development of games designed for eSports. With eSports being recognized as mainstream, these trends are expected to continue.
Streaming and Content Creation: Platforms such as Twitch and YouTube Gaming allow gamers to become content creators. The ability to stream gameplay in real time and produce compelling content has transformed gaming into a spectator sport, further expanding the scope and application of video games.
Training and Training Games: Video games are increasingly being used as educational tools. Functional games designed with learning objectives in mind are utilized in schools, universities, and corporate education programs. The games provide an engaging and interactive way to acquire knowledge and skills.
Health and Wellness: Gaming shoes have entered the healthcare and wellness area. Gamified apps and devices promote physical activity, manage chronic diseases, and aid in mental health treatment. Games are also used in physical rehabilitation and pain management.

Segment -

Increasing smartphone penetration rate drives market growth

Based on device, the global market is segmented into smartphone, PC/notebook, and console. Out of this, the smartphone segment was accounted for the largest video game market share. The increasing adoption of smartphones and easy access to 5G networks has led to an increase in the number of gamers. Technological developments in smartphones and availability of high-speed internet are boosting mobile gaming, which also helps in market penetration.

Technological developments and a tech-savvy public will help the market take off.

Based on age group, the market is divided into Generation X, Generation Y, and Generation Z. Generation Z is tech-savvy as they grew up in an era of technological advancement, widespread high-speed internet, and increasing smartphone penetration.

The launch of gaming smartphones will activate the market

Depending on the type of platform, the market is positioned into online and offline. Out of this, the online segment held the largest share owing to the launch of new smartphones with advanced features, increasing digitization, and high speed internet penetration rate. This segment consists of various types of games such as first-person shooter games (FPS), multiplayer online battle arena games (MOBA), real-time strategy games (RTS), battle royale games, etc.

Geographically the market is segmented into North America, South America, Europe, Asia Pacific, and Middle East and Africa.

Regional Insights

Asia Pacific: Major players set to take the lead

Asia Pacific is the major contributor to the market growth due to the presence of major players in the region and the increasing penetration of internet and smartphones. With the increasing usage of smartphones, developers need to focus on developing multiplayer video games such as PUBG and COD to meet the needs of the expanding consumer base, thus fueling the expansion of the market.

The North American region is expected to experience rapid growth due to the expansion of the gaming community, improved internet accessibility, and the prevalence of technologically advanced devices.

Competitive Landscape -

Product launches to drive market expansion

Large companies often make strategic decisions such as partnerships, mergers and acquisitions, collaborations, and investments in research and development to maximize revenue. One such decision is to release new products with advanced features to meet the growing needs of consumers.

Development of core industries -

July 2022: Asus expands its gaming smartphone line with the release of the new ROG Phone 6 Pro and ROG Phone 6. The phones feature IPX4 grade, the latest Snapdragon 8+ Gen 1 system-on-chip, 512GB storage, and up to 18GB RAM.
See the detailed summary in the research report.