The global gaming market is anticipated to reach $171.96 billion by 2025, according to a new report by Grand View Research, registering a 6.5% CAGR during the forecast period. Technological advancements in gaming hardware and software are anticipated to accelerate market growth over the next eight years.
Gaming has emerged as one of the most lucrative industries in the entertainment sector, besides music and film. Recent technological advancements, such as virtual reality and augmented reality, have been instrumental in opening up several avenues for market expansion.
Popular role-playing game The Elder Scrolls V: Skyrim is playable in VR on PlayStation 4.
The emergence of VR headsets has significantly impacted the market owing to the immersive gaming experience they offer. Commercialisation of VR headsets is on the rise and is increasingly prompting market players to generate VR content, to capitalise on the opportunities created by this technology.
Substantial growth in the development of AR and VR-related products, such as HMDs and HUDs, has remarkably enhanced the gaming experience, making it more engaging, the firm said. The emerging trend of game-based learning is anticipated to boost the adoption of video games in the academia vertical, as it not only helps in improving digital literacy but also facilitates skill development and cognitive growth.
Further key findings from the report suggest:
- The mobile segment is projected to gain momentum and exhibit a CAGR of 7.3% over the forecast period, owing to increasing smartphone penetration across the globe.
- Use of tablet phones for an improved viewing and playing experience is further expected to contribute to the growth of the mobile device segment.
- The online segment is estimated to witness substantial growth over the next eight years, expanding at a CAGR of 8.6% from 2017 to 2025. This can be attributed to increasing broadband penetration and growing online betting, gambling and social network gaming.
- The Asia Pacific market is expected to gain traction, attaining a market size of $86.84 billion by 2025.
- Emerging countries such as China, India, and South Korea are offering lucrative growth opportunities for market augmentation, which can be partly attributed to growing smartphone and internet penetration in these countries.
- Prominent players dominating the global gaming market include Tencent Holdings Limited, Nintendo, Microsoft and Sony.
