Global Online Simulation Games Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Online Simulation Games Market is Segmented by Type (Advertising, In-App Purchase, and Paid App), and Geography.

Market Snapshot

online simulation games market size
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 14.23 %
online simulation games market share

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Market Overview

The Global Online Simulation Games Market is expected to register a CAGR of 14.23% over the forecast period (2022-2027). The global gaming simulation market is expanding as a result of more firms using gaming simulation for training and analysis, as well as rising consumer demand for virtual reality (VR) headsets.

  • One of the most prevalent and well-played game genres is simulation. The tap-and-swipe mechanics adapt well to touch devices, making it one of the most popular games on smartphones. Simulation games are entertaining to interact with, and simple to play, and some of them may be played for many years.
  • The ease in understanding the simulation games adds to the growth of the simulation games market. In simulation games, actions take place automatically, and choices just serve to steer the game's progression in particular ways. Emulation of a certain activity is the goal.
  • Market expansion is anticipated to be aided by rising demand for live gaming experiences and rising interest in simulation games over conventional games. The creation of cost-effective items made possible by technological advancements is also anticipated to positively affect growth.
  • Additionally, expanding product application possibilities with AR and VR headsets are anticipated to drive the market for simulation games. The market for simulation games will grow as a result of the need to enhance, continually expand, and upgrade gaming experiences and gaming narratives. The demand for games has increased dramatically, and stimulation games have been a big factor in this expansion.
  • However, the development of the simulation genre is a challenge. There are plenty of sim subgenres, including aircraft sims, life sims, city-builder sims, survival simulations, agricultural sims, sports sims, and a tonne of other sims, because one can model almost anything. Also, the expensive cost of gaming consoles might hinder the market from expanding.
  • The effect on the digital gaming business has been favorable during the Covid-19 epidemic. Particularly, the creation of mobile games has drawn interest. During the COVID-19 pandemic period, Sim Racing games had a noticeable improvement in terms of participants and watchers. The major cause of this growth is attributed to the several professional race pilots that took part in the sim racing competitions that were organized during this time. Simulated racing games are quite realistic and provide internet play. There are many viewers interested in this situation.

Scope of the Report

Apps for simulation games are made to closely resemble some features of reality. The Sims, a simulation of a suburban family and social life with human relationships, home improvement, and the pursuit of happiness, and SimCity, which involves building and designing an urban city from scratch, are examples of games that fit this category. Both are produced by the video game developer Maxis. Numerous flight simulators also provide accurate representations of flying commercial aircraft, complete with aerodynamics, changing weather, and airport traffic management.

The Global Online Simulation Games Market is Segmented by Type (Advertising, In-App Purchase, and Paid App), and Geography.

By Type
Advertising
In-App Purchase
Paid App
Geography
North America
Europe
Asia Pacific
Middle East & Africa
Rest of the World

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Key Market Trends

Rise in Adoption of Smartphones Contributed to Market Growth

  • Globally, mobile gaming has surpassed both console and PC gaming as the most popular gaming format. The accessibility of mobile gaming is one of its primary advantages. The majority of people own smartphones with games. A variety of technology developments and enhancements, including AR, VR, cloud gaming, and 5G, have increased the demand for mobile games.
  • It could be stated that the broad availability of smartphones and tablets as well as the availability of popular mobile games for no cost have had a significant impact on this development.
  • As per GSMA Mobile Economy Report 2021, global mobile internet subscribers were reported to be 4.2 billion, a 5% increase over the previous year 2020 which recorded 4 billion. The subscribers are anticipated to reach the 5 billion mark by 2025 as per estimates. This growth in the adoption of mobile internet increases the revenue growth of the online simulation game firms.
  • Additionally, growing R&D expenditures, and investments for the creation of new mobile games will spur product demand. A further element promoting business expansion is the rising need for portable and lightweight racing simulators. Market consolidation and product technology breakthroughs are two trends in the worldwide simulation game industry.
  • For instance, Nodwin Gaming, an esports project of JetSynthesys, received a USD 22.5 million investment from Krafton in March 2021. Battlegrounds Mobile India (BGMI), the company behind the battle royale game, has announced that it will spend USD 100 million of the proceeds from its initial public offering in the Indian gaming and entertainment industry in June 2022.
online simulation games market analysis

North America to Hold Significant Share

  • North America dominated the online simulation games market with a significant share. Some of the prominent market players are based in North America, including Sony Interactive Entertainment, Microsoft, Activision Blizzard, Electronic Arts, and Take-Two Interactive.
  • The implementation of racing platforms at various theatres in North America to support motorsports and e-sports is also projected to increase demand for simulation games in the region.
  • For instance, according to reports, F1 will open fan-focused simulation experience centers in February 2022. This will give viewers a glimpse of what it would be like to be in the driver's seat of a car capable of exceeding 300 kmph. At the end of 2022, the center will be developed in the United States.
  • Various firms in the region actively participated in acquisitions to accelerate corporate development. Spin Games LLC was acquired by Bragg Gaming Group in a cash and stock deal valued at about USD 30 million, as previously stated. The purchase of Spin Games expands Bragg's North American business and gives it access to a unique and popular iGaming product line.
 online simulation games industry

Competitive Landscape

The Global Online Simulation Games Market is moderately consolidated and has a few significant players. Few key companies currently hold a large portion of the market, such as Sony Interactive Entertainment, Tencent, Nintendo, Microsoft, NetEase, Inc, Activison Blizzard, Inc., etc. These dominant firms are growing their consumer bases internationally. These companies are advancing technologies such as AR, VR, etc., to raise their market share and profitability.

  • May 2022 - Jackalope Games, a company situated in Austin, Texas, was announced as the first American studio by NetEase Games, the online games branch of NetEase, Inc. As a first-party studio of NetEase Games, Jackalope Games will develop PC and console games.
  • August 2021 - Xperia 1 III's flagship smartphone will have an exclusive collaboration with Sony, a provider of electronics goods and solutions, according to Gameloft, a player in the production and publication of video games. With the help of an Xperia 1 III, the mobile racing game Asphalt 9: Legends finally offers a game with 120 frames per second* (FPS), owing to Gameloft's extensive collaboration with Sony.

Recent Development

  • February 2022 - Gran Turismo SophyTM, the first superhuman AI agent to exceed the world's prominent drivers in the realistic PlayStation 4 racing simulation game Gran Turismo Sport, was announced by Polyphony Digital Inc. (PDI), and Sony Interactive Entertainment (SIE). Gamers all across the world will be able to access AI-powered gaming experiences delivered by GT Sophy.
  • February 2022 - Nautilus Mobile, a mobile game production business owned by JetSynthesys, has acquired a USD 5.4 million investment from South Korean gaming firm Krafton. This is the company's first financial commitment to an Indian game development firm. The investment is concentrated to develop fresh sports gaming environments for the cricket-loving Indian audience.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Adoption of Smartphones

      2. 5.1.2 Increased Utilization of Gaming Simulation for Training and Analysis Across a Variety of Fields

      3. 5.1.3 Growing Demand for VR Headsets

    2. 5.2 Market Restraints

      1. 5.2.1 Need for Expensive Graphic Cards

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Advertising

      2. 6.1.2 In-App Purchase

      3. 6.1.3 Paid App

    2. 6.2 Geography

      1. 6.2.1 North America

      2. 6.2.2 Europe

      3. 6.2.3 Asia Pacific

      4. 6.2.4 Middle East & Africa

      5. 6.2.5 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Sony Interactive Entertainment Inc.

      2. 7.1.2 Tencent

      3. 7.1.3 Nintendo

      4. 7.1.4 Microsoft

      5. 7.1.5 NetEase, Inc.

      6. 7.1.6 Activision Blizzard, Inc.

      7. 7.1.7 Electronic Arts Inc.

      8. 7.1.8 Take-Two Interactive Software, Inc.

      9. 7.1.9 Bandai Namco Entertainment Inc.

      10. 7.1.10 Square Enix Co., Ltd.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Global Online Simulation Games Market market is studied from 2020 - 2027.

The Global Online Simulation Games Market is growing at a CAGR of 14.23% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Sony Interactive Entertainment Inc., Tencent, Nintendo, Microsoft, NetEase, Inc. are the major companies operating in Global Online Simulation Games Market.

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