Fastest Growing Market:
The 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.
Scope of the Report
The gaming industry is growing with the increasing per capita income, growing interest, and rising number of dual-income households that are augmenting the transformation of the global market. Also with the increasing usage of smartphones and consoles along with cloud penetration, the market shows high growth in the future.
| By Game Type |
| ||Console |
| ||Tablet |
| ||Smartphone |
| ||Downloaded/Box PC |
| ||Browser PC |
| Geography |
| || |
| North America |
|United States |
| || |
| Europe |
|United Kingdom |
|Rest of Europe |
| || |
| Asia Pacific |
|South Korea |
|Rest of Asia-Pacific |
| || |
| Latin America |
|Rest of Latin America |
| || |
| Middle East & Africa |
|Saudi Arabia |
|Rest of Middle East & Africa |
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Key Market Trends
Console Segment to Witness Significant Growth
- The most recent trend is the growing availability and popularity of multi-functional gaming console, which is emerging in the market and helping in growing the market of video games globally.
- A video game console is an interactive entertainment computer or modified computer system that produces a video display signal which can be used with a display device (a television, monitor, etc.) to display a video game. The PlayStation 4 Pro is the best version of the most popular game platform available today. With 4K, HDR 10 compatibility, and the PlayStation 4’s exclusive game library, it is currently the best plug-and-play gaming platform which predicts more revenue generation in future in video game console segment.
- Coming to new innovation, in Sep 2019, NEOGEO Arcade Stick Pro Merges both Game Console and Controller in one part where the controller also comes with “start/select” buttons, a turbo switch and ports for HDMI and USB. This new innovation will help the user to penetrate more on the console segment due to its unique features.
- Video gaming in China is a massive industry and pastime that includes the production, sale, import/export, and playing of video games. China is the largest, highest grossing and the most profitable video game market in the world, since 2015. In esports, China has been the world leader in terms of tournament winnings, possessing some of the best talents in the world across multiple video games, as well as one of the largest pool of video gamers. As of 2017, half of the top 20 highest earning esports players in the world are Chinese.
- Due to adoption of esports, the increase of video game through console is increasing and will accumulate more growth in the future.
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Asia-Pacific Holds the Largest Market Share
- Asia-Pacific hold the largest market share, where Southeast Asian holds the largest revenue. The online population in Southeast Asia (SEA) is rapidly rising, mostly due to an increase in mobile-device use and almost two thirds of the gaming population in Greater Southeast Asia are engaged in esports. Owing to this, the region is also the fastest-growing games market in the world.
- While companies from all over the world are vying for a piece of the SEA gaming pie, the region’s top publisher is local player Sea Group (formerly known as Garena). The company is best-known for publishing Tencent’s titles in SEA.
- Moreover, South Korea-based Gravity, a subsidiary of GungHo, has doubled down on SEA, investing heavily to promote its portfolio in the region, particularly the Ragnarok franchise.
- Also various new platforms are being generated to enhance the Aisa-Pacific growth. For instance,in Sep 2019, industry-leading casino content developer Betsoft Gaming announced that they will roll out a suite of highly innovative slot games specifically designed for the Asian market.
- Asia-Pacific is soon becoming the hub for many pilot projects of gaming companies. For instance, in March 2019, Tencent launched a website for the cloud gaming platform called “Start” and invited people in Shanghai and Guangdong, China to sign up for the test.
- Japan has been setting trends in gaming since the advent of the industry. It developed the consoles that shifted video games into the mainstream and pioneered a number of foundational genres, franchises, and studios. Esports and MMO games are the obvious future of the video game industry, and Japan is starting to change the way it approaches both to maintain its position as a gaming heavyweight.
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The gaming market is fragmented as the demand for online games and increasing penetration of mobile applications across the US, the UK, Italy, and China & SAR region will help attract new players in this market over the next few years. Key players are Sony Corporation, Microsoft, Nintendo, etc. Recent developments in the market are -
- Sep 2019 - Electronic Arts began a technical trial for a cloud gaming service. In launching the trial of the service, EA is joining the bandwagon for cloud gaming, which Google has been evangelizing in advance of its Stadia service launching in November.
Sep 2019 - Razer planned to invest USD 7.2 million to drive growth in Singapore’s gaming scene. With the investment, Razer looks to support esports teams and gaming companies based in the city-state or founded by Singaporeans. This funding will also go in part to Team Singapore, which they are supporting for the SEA Games.
Table Of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Rising Internet Penetration
4.3.2 Adoption of Platforms Such as e-sports Betting and Fantasy Sites
4.4 Market Restraints
4.4.1 Issues Such as Piracy, Laws and Regulations, and Concerns Relating to Fraud During Gaming Transactions
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5. TECHNOLOGY SNAPSHOT
6. MARKET SEGMENTATION
6.1 By Game Type
6.1.4 Downloaded/Box PC
6.1.5 Browser PC
6.2.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
6.2.3 Asia Pacific
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
6.2.4 Latin America
22.214.171.124 Rest of Latin America
6.2.5 Middle East & Africa
126.96.36.199 Saudi Arabia
188.8.131.52 Rest of Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Key Stakeholder Profiles
7.1.1 Sony Corporation
7.1.2 Microsoft Corporation
7.1.3 Nintendo Co., Ltd.
7.1.4 Activision Blizzard, Inc.
7.1.5 Electronic Arts Inc.
7.1.6 Ubisoft Entertainment SA
7.1.7 Square Enix Holdings Co., Ltd.
7.1.8 ZeptoLab, OOO
7.1.9 Tencent Holdings Limited
7.1.10 Sega Games Co., Ltd.
7.1.11 Capcom Co., Ltd.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS