The gaming industry is one of the fastest-growing entertainment niches globally. In the coming years, it is poised to grow even further.ra
With consistent technological innovations, the sky’s the limit for the gaming industry. Today, we would shed some light on this industry. Our analysis below will help you understand how big this industry is and what lies ahead for it.
Market Growth:
Let us first look at the factors fuelling the growth of this industry.
1. Market size to reach $ 256 billion by 2025:
Did you know that the entire gaming industry is valued at $ 151.55 billion currently?
Yes, that was the size of this industry at the end of 2019. It is poised to grow at a compounded rate of 9.17% up until 2025. That translates into a market value of $ 256.97 billion by the end of 2025. While such growth is unheard of in huge industries but the gaming industry is undoubtedly outperforming other industries.
With diverse platforms like PC, smartphones, consoles, etc., making up this industry, it does not come as a surprise that the growth ahead is significant.
However, in this vast industry, not every segment is growing at the same pace. We will now help you understand what factors induce such growth.
2. Exponential growth in E-sports niche:
E-sports segment of the gaming industry is witnessing exponential growth. Quite a few games are fuelling this growth. Some examples include:
- Counterstrike: Global Offensive
- Dota 2
- League of Legends
- And so on
The e-sports segment is also building bridges between the off-line and online world. Facilitating this are the tournaments organized globally. One of the main reasons for consistent growth in the gaming industry is the e-sports niche.
3. COVID-19 induced growth:
Many other industries witnessed a vanishing growth due to Covid-19. Gaming, on the other hand, has received an impetus. That is because home entertainment is the only viable entertainment source for consumers these days.
Covid-19 induced growth is witnessed across different gaming segments. The pandemic has turned in favor of the gaming industry.
Now that you are aware of the size and growth of the gaming industry let us look at the latest trends.
Gaming Industry Trends:
There are a few long-lasting trends in the gaming industry. You cannot ignore these trends if you observe the gaming industry carefully.
1. Smartphones are leading the growth:
Smartphone gaming has become an integral part of the gaming industry. According to some estimates, the United States alone has 200 million smartphone gamers. The smartphone gaming industry is also growing at a brisk pace due to advancements in VR gaming, AR gaming, and cloud gaming.
The growth in smartphone gamers is a global phenomenon. By 2021, the number of smartphone gamers in the south-east Asian region alone is expected to reach 250 million. When you combine that with the numbers in the United States and Europe, smartphone gaming is emerging as one of the largest gaming industry segments.
2. Asia-Pacific to hold significant market share:
Asia-Pacific has various telecom providers offering unlimited data. So, the number of gamers in this region is increasing at a brisk pace. According to some estimates, by 2025, there would be 1000 545 million 5G mobile subscribers in the Asia-Pacific region.
With an estimate of 250 million players by 2021, the runway for growth is vast. Eventually, the Asia-Pacific region will undoubtedly hold a significant market share when it comes to the gaming industry. It is another emerging trend which you need to be aware of.
There have been some recent developments as well, which underline the gaming trends. We will highlight these below.
Recent Developments:
Let us look at some recent developments to gauge the direction of the gaming industry’s movement.
1. Cloud gaming impetus:
Cloud gaming offers quite a few advantages as compared to traditional gaming platforms. The problem is that no big player was willing to adopt cloud gaming as a platform. However, that changed in September 2019. Electronic Arts is trying out cloud gaming service to reach out to more players. Google is also doing the same.
The reach of these companies will surely provide an impetus to cloud gaming.
2. Significant investments in Asia pacific gaming scene:
With the Asia-Pacific region being the future of the gaming industry, investments in this region are also significant. Companies globally are not shying away from investing in this region. The latest to join the bandwagon is Razer.
Many gamers are familiar with Razer gaming laptop models. However, Razer is also stepping into the e-sports arena. For the same, it announced an investment of US$ 7.2 million in Singapore. Once again, the importance of the Asia-Pacific region is evident in this announcement.
Many such investments and deals are happening in the Asia-Pacific region by various companies.
Thus, the recent developments in the gaming industry also highlight the underlying trends.
One thing which is for sure is that the gaming industry will outpace other industries when it comes to growth. With numerous platforms and subsegments, the gaming industry is undoubtedly unparalleled and provides a slew of opportunities for everyone to explore. Do keep a watch on this industry for technological innovations and exciting developments in the years to come.
