Global Games Market Expected to Hit US$ 98 Billion in revenues 2023

by Rahul Rastogi Market Research Analyst

Gaming refers to the activity of playing games by using different means such as mobile phones, computers, consoles, etc. It helps in enhancing the overall concentration, creativity and strategic thinking of the player. It also benefits children in developing several life skills and assists educators to offer supplementary classroom teaching. The inception of gaming can be traced back to the early 1950s when academic computer scientists came up with sample simulations and games for research purposes. However, the first game system, known as ‘Brown Box’, was designed in the late 1960s by Ralph Baer. It consisted of a vacuum tube-circuit connected to a television set and enabled two users to control the cubes that chased each other on the screen.

 

During the early 1970s, the trend of ‘arcade’ game came into recognition with the introduction of in-house games by Atari, the first gaming company. Later, the gaming industry picked-up pace with the invention and expansion of the Internet which presented numerous opportunities to developers for marketing their video games across the world. Over the years, the gaming sector has witnessed a variety of technological developments made in both hardware and software, including augmented- and virtual-reality gaming, which have attracted a vast consumer base. According to IMARC Group, the global gaming market value was more than US$ 98 Billion in 2017.

 

Increasing usage of smartphones to induce the gaming market

One of the major gaming market trends has been the growing ubiquity of smartphones. As these devices are embedded with innovative graphic designs and other gaming features, this trend has helped in propelling the growth of the game market. In addition, international game tournaments are conducted by major sports and game federations, such as FIFA Interactive World Cup, Major League Gaming (MLG) and The International League of Legends World Championship. These tournaments have been gathering an increasing number of participants every year, in turn, driving the market growth.

 

With the availability of free-to-play business models, the players are offered free games with the option of paid upgrades. The additional revenues generated by these in-app purchases further benefit the developers. Apart from this, manufacturers have started introducing downloadable content (DLC), ranging from aesthetic outfit changes to extensive storylines, which has been acting as a positive factor for the growth of the global gaming market. Looking forward, the gaming market size is expected to reach nearly US$ 172 Billion by 2023, at a projected CAGR of approximately 10% during 2018-2023.

 

Mobiles and tablets represent the leading device type

There are various types of devices used for playing video games, such as consoles, mobiles and tablets, and computers. Mobiles and tablets currently represent the most popular devices used in the gaming industry, owing to the convenience offered by them. These devices are portable in nature as they function wirelessly and are smaller in size as compared to laptops, computers and gaming consoles. Along with this, mobiles and tablets are also cheaper than other devices.

 

Offline is the most preferred gaming platform

The two platforms on which video games can be played include online and offline. At present, users mostly prefer offline gaming platforms which can incorporate simple to complex graphics and gameplay mechanics. Offline games are more reliable than online games as it is not affected by the shutting down of the server or any disturbances from the service provider’s end. However, the demand for online games is expected to gain traction over the next few years. This can be accredited to the in-game communication facilitated by these games which is promoting multiplayer game. Apart from this, through online gaming, players are provided with a wide collection of games which they can access easily and frequently.

 

Game purchase represents the biggest revenue type

Game purchase holds the majority of the gaming market share, followed by advertising. In recent years, the freemium business model has become popular, wherein the developer offers the basic game for free so as to attain a large user-base. After this, several attempts are made for upselling various pieces of the game in the form of in-game digital video content for generating revenue. Currently, the freemium segment is led by mobile games, whereas pre-paid games dominate console and PC game.

 

Adventure/role playing is the most popular genre

On the basis of genre, the global gaming market has been segmented into adventure/role playing games, puzzles, social toys and games, strategy and simulation. Amongst these, adventure/role playing games are the most popular segment. This can be attributed to the rising interest of players in story-driven experiences. In adventure and role-playing games, players are also attracted to the never-ending storylines and the versatilities of the character they are portraying in the game.  

 

Adults represent the largest age group

Based on age group, the gaming market is segregated into adults and children. At present, adults hold the majority of the share owing to a rise in the population of young adults. With an increase in internet penetration, adults from around the world have become accustomed to playing games online. In addition, video games play the role of a stress reliever for adults who lead busy and hectic lifestyles.

 

Asia Pacific is the biggest gaming market

On a geographical front, Asia Pacific exhibits a clear dominance in the gaming market, followed by Europe, North America, Latin America, and Middle East and Africa. This is due to the increasing usage of smartphones and the consequent growth of mobile game. In this region, high-technology video game hardware is also gaining popularity as the gamers are willing to purchase premium-quality consoles.

 

The global gaming market is fragmented in nature with the presence of various small and large players currently competing in terms of quality and prices. Some of the key global players operating in this market include Apple, Disney, Ubisoft, Sony, Nintendo, Microsoft, Sega, Facebook, Zynga and Konami.

view original content: https://steemit.com/gaming-market/@prashantrastogi/global-gaming-market-driven-by-growing-popularity-of-international-tournaments

source: imarc group

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Created on Oct 24th 2018 03:43. Viewed 208 times.

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