Market Trends of North America Gaming Industry
This section covers the major market trends shaping the North America Gaming Market according to our research experts:
Rising Smartphone adoption and Internet Penetration Driving the Market Growth
- Accessibility is one of the primary reasons for the adoption of mobile gaming, and most smartphones are loaded with games. The growing popularity of mobile games is due to technological developments and enhancements, such as AR, VR, cloud gaming, and 5G.
- Because of its immersive and interactive technologies, augmented reality is becoming ideal for mobile gaming. Furthermore, mobile games are the most popular AR genre in app stores. Apart from previously launched AR mobile games that are still popular, such as Pokémon Go and Ingress, vendors in the North American market are creating numerous new contributions to the category.
- According to Ericsson, 5G connectivity is expected to drive the growth of the North American gaming market in the coming years, as the newer mobile technology with higher data speeds, ultra-low latency, and increased availability, among other benefits. 5G subscriptions are forecast to increase drastically in North America from 2019 to 2027, from over 1.07 million to around 399.99 million subscriptions. The region has the highest adoption rate of smart devices. As smart devices, especially smartphones, play a significant role in the development of the market, the region offers a huge opportunity for the growth of the market studied over the forecast period.
- Furthermore, regional telecom companies are aggressively making efforts to attract customers to use their 5G network. Hence, these regional vendors invest and innovate the software and platform to develop gaming applications by leveraging the upcoming 5G technology.
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United States is Expected to Hold Major Market Share
- In the United States, gaming hardware, such as consoles, is expected to hold significant demand in the market. This demand for console games is not limited to hardcore gamers who spend a substantial amount of time gaming and generate a significant share of the gaming industry.
- Gaming consoles have witnessed a steady rise in demand, owing to the continual rise in gamers and technological advancements in the United States over the last few years. The number of time users spend on gaming has been increasing as the number of games and the variety is increasingly diversified. Unique content is also being created continuously.
- In addition, the gaming consoles provide an advanced graphical output that is unmatched by other alternative platforms. The report by Entertainment Software Association stated that 63% of gamers in the United States made their purchase decision majorly based on the quality of graphics. The gaming consoles benefitted from their ability to support 4K content.
- Video gaming is no longer a hobby exclusively for the young. As generations have grown up with video gaming as a common part of life, the average gamer's age has risen. According to a survey conducted by Entertainment Software Association this year poll, 36% of video game players are between 18 and 34, with 6% being 65 and older. Time spent playing video games last year; Americans aged 15 to 19 spent 1.44 hours a day on gaming or leisurely computer use on average. The 45 to 54-year-old age group was the one that spent the least amount of time gaming. During a typical day, members of this age group spent only 0.28 hours playing on the computer.
- The key players in the market are introducing new technologies which propel the market growth in the market. For instance, in June this year, Microsoft Corporation released an Xbox app for smart TVs that enables consumers to stream Xbox video games even if they do not own consoles.
- Gaming consoles survived the revolution created by smartphones, as the games compatible with such consoles cannot be practically supported in smartphones with limited battery life. Although increased smartphone ownership was witnessed in the past decade, console manufacturers continuously try to add an edge to their gaming experience.
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