The global video game market is set to reach $346.71 billion by 2028, growing at a compound annual growth rate (CAGR) of 8.58% from 2024 to 2028. This growth is driven by a rising number of gamers, increased Gen Z population, higher smartphone penetration, increased disposable income, and growing internet access. The video game market can be divided by device into mobile, console, and personal computer (PC).
As of 2023, mobile gaming holds the largest share, followed by console gaming. By mode, the market is segmented into offline and online gaming, with the latter dominating in 2023. Asia-Pacific holds the largest market share due to the region’s substantial gamer base and rapid technological advancements.
North America, Europe, Latin America, and the Middle East & Africa are also significant contributors to the market. Key drivers include a rising number of gamers, surge in Gen Z population, increased smartphone penetration, greater disposable income, and growing internet penetration. Notable trends in the market consist of 5G Internet Connectivity, cloud gaming, new monetization models, industry consolidation, mobile gaming and platform agnosticism, emergence of the metaverse, and technological advancements.
The market must navigate challenges such as piracy protection, cybersecurity issues, and health-related concerns. Leading players in the market include Apple Inc., Microsoft Corporation, Tencent Holdings Ltd, Sony Group Corporation, Nintendo Co., Ltd., and Electronic Arts Inc. The Global Games Market Report for 2024 has been announced, revealing a 2.7% year-on-year revenue growth.
The report predicts that the global games market will generate $187.7 billion in 2024. PC gaming revenues are up by 4% year-on-year, amounting to $43.2 billion, outgrowing mobile and console revenues for the year. However, it is predicted that console revenues may rise significantly by 2025, potentially overtaking PC gaming revenues.
The number of global players has risen from 3.145 million in 2022 to 3.422 million in 2024 and is expected to reach 3.759 million by 2027.
Global games market trends and growth
This growth has led to an increase in global paying gamers by 5% to $1.5 billion in 2024, with revenue expected to hit $1.67 billion by 2027.
Asia remains the leading region in terms of the number of gamers, making up 53% of the total and experiencing a 4% increase this year. The Middle East and Africa saw the most significant growth, with an 8.2% year-on-year increase in gamers. Mobile gaming continues to be the highest revenue source across all gaming platforms, generating $92.6 billion, a 3% increase year-on-year, accounting for 49% of all gaming revenue.
The report also highlights the benefits of releasing games on cross-platforms, a trend that is increasing but not yet universal among major gaming companies. Despite a decrease in the average time players spend on games, the gaming industry continues to thrive. By next year, an estimated 3.4 billion people worldwide will be playing games, expanding the industry’s influence across media and entertainment.
An analysis of revenue streams shows a varied growth trajectory across different gaming platforms. PC games are expected to see the largest growth this year at 4%, though they will contribute the least among all sectors at $43.2 billion. Consoles are predicted to experience a 1% decline, bringing in $51.9 billion, while mobile games are forecasted to grow by 3%, generating $92.6 billion.
Geographically, the Asia-Pacific region will dominate revenue generation, contributing 46% or $85.9 billion, with China alone responsible for $45 billion. North America follows, contributing 27% or $50.2 billion, most of which ($47 billion) will come from the United States. Europe will account for 18% of total industry revenue, generating $34.8 billion.
Despite representing only 9% of revenues, Latin America, the Middle East, and Africa will see the highest growth rates this year, at 6.2% and 8.9% respectively. The Newzoo report also highlights several key issues that developers and publishers will face in 2024, including the feasibility of investing in smaller games versus large-scale projects, the integration of artificial intelligence in game development, the performance and balance of free-to-play games versus paid models, and the strategic decision between focusing on existing franchises and creating new ones. As the industry continues to evolve, adapting to these challenges will be crucial for sustained growth and innovation in the gaming market.
