The market size of the global gaming industry as a whole reached $195.65 billion in 2021, according to a report by San Francisco-based market research and consulting company Grand View Research released earlier this month.
In addition, the market is estimated to continue growing at a compound annual growth rate (CAGR) of 12.9 per cent between 2022 and 2030.
“Advances in technology and continued innovation in both hardware and software to enhance the real-time rendering of graphics are expected to drive the growth of the market over the forecast period,” the company said.
“The proliferation of smartphones, the growing internet penetration rate, and the easy availability of games on the internet are expected to contribute to the growth of the market,” it added.
The steadily increasing preference for online gaming has resulted in tremendous success in the segments of multiplayer online (MMO) games, such as Diablo, World of Warcraft and Final Fantasy, as well as free-to-play games, such as Destiny, Fortnite and Apex Legends.
“The trend is anticipated to continue over the forecast period,” the company noted, adding that because of this, “game developers are focusing on the compatibility and efficiency of hardware”.
Moreover, increased disposable income among both experienced gamers and newcomers to this area, especially in previously untapped markets, is contributing to the high demand for high-end consoles, such as the PlayStation 5 and Xbox Series X.
However, one factor adversely affecting market growth is the increase in sales of counterfeit or otherwise illegally distributed products, particularly in markets such as Indonesia and China.
The company added that “the growing concerns over data security and piracy protection and the rising instances of fraud during gaming transactions are also emerging as potential threats restraining the growth of the market”.
In addition to the above, the report also highlighted a sharp increase in health issues and disorders that have been identified as being the result of video game addiction.
This has been designated as another negative factor in terms of how it affects market growth during the aforementioned forecast period.
In terms of how the gaming market is distributed across devices, the mobile segment came up on top during the previous year, representing more than 40 per cent of the total revenue share.
This trend is expected to carry on until at least 2030, the company noted, particularly with the sustained proliferation and development of smartphones capable of increasingly better processing performances.
“The growth of the mobile segment can also be attributed to the increasing demand for mobile tablets featuring larger displays and hence guaranteeing a better gaming experience,” the report explained.
Furthermore, steadily higher sales of handheld consoles are also estimated to drive the growth of the mobile segment in a noticeable way.