Video Game Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Video Game Market Trends and Insights

Mobile-First Gaming Adoption in Asia

Asia’s younger demographics and affordable smartphones have made the region the center of global mobile gaming revenue. China’s mobile segment generated USD 31.2 billion in 2024 after authorities approved 1,416 new domestic titles, while Indonesia recorded a USD 1.3 billion mobile spend on the back of free-to-play releases tailored to local habits. Competitive play is increasingly social; South Korea’s success with role-playing hits such as “Legend of Mushroom” illustrates how community engagement drives time-in-game. As Asian publishers refine regional payment solutions and localize narratives, publishers from outside the region must adopt a mobile-first mindset to sustain growth.

Subscription Services Redefine Monetization

Global spending on game-library, single-game, and platform-level subscriptions is projected to reach USD 19 billion in 2024 and exceed USD 27 billion by 2028, equal to 14% of total gaming expenditure. The appeal lies in perceived value: subscribers access extensive catalogs across console, PC, and cloud endpoints for a monthly fee. Early evidence indicates that these plans lift hardware sales and improve engagement without eroding premium-game revenue. Publishers benefit from steadier cash flows, while players face lower barriers to trying unfamiliar genres.

5G Accelerates Cloud-Gaming Uptake

The transition to standalone 5G networks is cutting latency to sub-20 milliseconds, enabling streamed gameplay that feels native. The cloud-gaming segment is forecast to climb from USD 6.91 billion in 2024 to USD 22.01 billion in 2028, a 33.6% CAGR. Operators in the Middle East, notably Jordan, are positioning new fibre-backed 5G nodes as catalysts for content-industry diversification ^{[1]Kevin J. Murphy, “Leveraging 5G to Transform Jordan’s Gaming Industry to Achieve Global Dominance,” ericsson.com}. Cloud access widens addressable audiences—players on modest handsets can stream titles that once demanded dedicated hardware.

Generative-AI Tools Shorten Production Cycles

Adoption of generative text-to-asset tooling is rising across art, audio, and non-player character scripting. Unity’s 2025 report notes a 36% share of studios experimenting with AI-assisted workflows, up from 31% one year earlier ^{[2]Unity Technologies, “2025 Unity Gaming Report,” unity.com}. While only 13% of surveyed developers expect AI to improve game quality in the long run, early users cite faster iteration and richer personalization of live-service updates. These efficiencies translate into shorter go-to-market timelines and more frequent content drops that keep existing players engaged.

App-Store Rules Cut Into Margins

The EU Digital Markets Act and parallel US antitrust actions require platform owners to lower commissions and permit outside payment options. Apple’s March 2025 compliance filing reduces most in-app fees to 10% and unlocks side-loading in Europe ^{[3]Apple Inc., “Apple’s DMA Compliance Report,” apple.com}. In the near term, implementation expenses and uncertainty over alternative-store uptake compress mobile profit margins for traditional publishers. Over time, cheaper distribution paths could enhance developer economics, but benefits will not be evenly distributed.

User-Acquisition Costs Keep Climbing

The global average cost per install reached USD 5.11 on iOS and USD 4.61 on Android in 2024, according to mobile-marketing benchmarks. Blame falls on tighter privacy rules that limit ad-targeting precision, forcing marketers to raise bids. A rising share of studios now track lifetime-value-to-CAC ratios at or below 3:1, prompting heavier investment in retention mechanics such as live-ops events and battle passes. Smaller teams without deep wallets face tougher economics, nudging them toward niche genres or cross-promotional alliances.

Segment Analysis

By Device Type: Cloud Traction Narrows Mobile Lead

Mobile gaming generated USD 127 billion in 2024, accounting for 49% of the video game market share. Console revenue followed at USD 50.3 billion, slightly ahead of PC’s USD 41.5 billion. Cloud-gaming services are the fastest-rising category; the segment’s video game market size is projected to reach USD 22.01 billion by 2028 on a 27% CAGR. Wider 5G rollout and aggressive platform bundling are converting non-traditional gamers who do not own dedicated hardware.

Cloud’s momentum also influences hardware strategy. Device makers are releasing handheld streaming terminals that tether to home Wi-Fi or cellular networks, blurring lines between console and mobile experiences. Publishers hedge by supporting cross-progression so players can shift screens without losing achievements. As latency drops and data-center GPU density rises, the gap between local and streamed performance narrows, challenging the historical dominance of high-end consoles.

Note: Segment shares of all individual segments available upon report purchase

By Genre: Innovation Fuels Role-Playing Momentum

Action franchises retained a 25% revenue share in 2024, headlined by annualized blockbuster releases. Role-playing games, however, are accelerating with a 15% CAGR through 2030 as studios adapt deeper stories for mobile and cross-platform delivery. In Southeast Asia, strategy, simulation, and role-playing categories all posted double-digit download gains, underscoring regional appetite for complex mechanics.

Monetization dynamics also favor RPG creators. Gacha-style character pulls and battle-pass upgrades deliver consistent revenue, while user-generated mods extend shelf life. The cloud-streaming era further boosts high-fidelity RPGs that previously demanded powerful PCs. As AI-supported quest design matures, narrative branching is expected to deepen, enticing lapsed players back into long-running worlds.

By Revenue Model: Subscriptions Complement Free-to-Play

Free-to-play titles comprised 64% of 2024 spending, underpinned by in-game cosmetic and season-pass purchases. Subscription-based offerings represent the most rapid shift, rising at a 20% CAGR; their video game market size is forecast to cross USD 27 billion in 2028. Bundled libraries enhance perceived value for price-sensitive gamers, while developers receive steady, recurring revenue that eases budgeting for live-ops updates.

Hybrid models are emerging. Publishers often launch new titles into subscription catalogs for a limited window before reverting to standalone sales. This approach converts trial users to full purchases and preserves premium pricing. Platform holders, meanwhile, negotiate timed exclusives to differentiate their ecosystems, echoing the streaming-video playbook.

Note: Segment shares of all individual segments available upon report purchase

By End-User: Casual Base Funds Esports Upscale

Casual players accounted for 60% of the active base in 2024, attracted by accessible mobile controls and quick session lengths. In contrast, professional esports athletes represent a small but fast-growing cohort with an 18% CAGR to 2030. Prize pools, media rights, and sponsorship deals lift the segment’s video game market size, while training academies and analytics platforms professionalize talent pipelines.

Brands increasingly view esports as a marketing channel toward Generation Z audiences unreachable by traditional media. Investments such as Saudi Arabia’s Savvy Games Group—backed by USD 37.7 billion for studio acquisitions and local infrastructure—illustrate state-level ambitions to capture this value chain. Concurrently, collegiate leagues in North America standardize pathways from amateur to professional competition.

Geography Analysis

Asia-Pacific retains leadership with 48% of global revenue in 2024, anchored by China’s robust ecosystem. China’s online-gaming sector is projected to climb from USD 66.1 billion in 2024 to USD 95.5 billion by 2029 on a 7.63% CAGR, with Tencent controlling roughly half of the domestic market. Japan and South Korea add depth through console and PC communities that emphasize high-spend, high-engagement genres. Regional publishers leverage locally relevant intellectual properties, creating cultural resonance that global firms sometimes struggle to replicate.

The Middle East & Africa region is the industry’s fastest-growing territory, set to expand at a 14.2% CAGR. Saudi Arabia expects its gaming sector to contribute USD 13 billion to GDP by 2030. Public-sector vehicles such as Savvy Games Group aim to attract international studios with tax incentives, regional e-sports arenas, and a labor-force-training pipeline. Across Africa, mobile accessibility drives nearly 90% of engagement, and the regional video game market size for mobile titles is on track to surpass USD 1 billion in 2024.

North America generated USD 46 billion in consumer spending during 2023, underscoring enduring console and PC loyalty. Hardware sales softened in late 2024, but PC and subscription revenues rose, signaling a pivot toward flexible content access models. Europe follows a similar digital-first trajectory; the UK market dipped 4.4% to GBP 4.61 billion (USD 3.40 billion) in 2024, yet mobile micro-transactions grew 2.6% to GBP 1.585 billion (USD 2.15 billion). The Digital Markets Act introduces alternative payment choices that could realign revenue flows toward publishers over the medium term.