Expected to rise up to $256.97 billion by 2025, statistics show that the gaming industry is transcending at an unexpected rate than ever before.
The gaming industry at a glance
The past few years have been excessively fruitful for gaming companies in terms of experimenting as well as generating large revenues from the business. As the demand for better games and gaming experience sky-rocketted in the past few years, tech giants and game developers have become the cornerstones for ushering the industry into a multi-billion dollar business. With PC gaming witnessing a growth of 21.1 percent in 2019, the expectations from console, VR and mobile gaming is also higher than ever before. While the demand for free-to-play gaming modules has risen tremendously over the last five years, some marketplayers of the industry are also focusing on the demand for in-game items that need to be purchased separately.
Trends in the gaming industry in the last five years
The year 2015 observed the entry of 1.5 billion gamers demanding for newer versions and types of games. This was mostly due to the advent of better internet connectivity and optic fibre. Especially in the Asia Pacific region, there was a sudden boost of gamers from developing nations due to advances in technology. In 2016, the launch of Pokemon Go, an augmented reality game, became one of the highest revenue generating mobile games in the first month of its release. This year also saw the launch of VR accessories in the market such as headsets, gloves and bodysuits. Following such discoveries in the gaming industry, there was a huge rise of start-ups pushing their boundaries of innovation and price for creating motion trackers in the gaming accessories for enhancing user experience.
A brief look at the revenue generated
In the past few years, mobile gaming has witnessed a major boost in revenue collection. With a collection of $85 billion in the last five years, mobile gaming has been one of the most successful businesses in the gaming industry. Currently occupying a market share of 49 percent alone, mobile gaming has seen a sudden surge especially in the Asia-Pacific region. While console gaming has been at a stagnant growth of 31 percent each time in the last five years, PC gaming has been fluctuating between 23 to 21 percent in revenue collection. Due to cloud based gaming services launched by Google, Microsoft and Amazon, PC gaming has witnessed a collection of $40 billion.
An interesting observation revealed by experts suggests the high revenue generation by the music industry as a result of its collaboration with the gaming industry. A significant growth of $19 billion has been observed due to the development of new games that have been using music scores as an important feature for enhancing user experience.
Deciphering the future of gaming
In terms of the revenue and consumer demand, mobile gaming is expected to grow manifold in the next few years. In 2019 alone, mobile gaming has seen approximately 2.4 billion new gamers. Technologies such as 5G virtual gaming is also expected to bring in positive responses from gamers from across the world. Countries such as Japan, South Korea and China have disclosed to be creating some games that are expected to be released by the mid of 2020.
As a whole, the gaming market is going to exceed $200 billion at the end of 2023. A major reason for this is the partial lockdown in most countries of the world. The remote opportunities have convinced more people to stay indoor and try out new gaming solutions as one of their leisure activities. Console gaming will continue to grow, but mobile gaming will be the torchbearer. Statistics also reveal that 50 percent of the gamers are already women currently and this is expected to grow even further in the next few years. Moreover, the age group between 18 to 20 is reportedly the highest consumer of console and mobile games.
Most important, the future of gaming is going to see the emergence of advancements in Virtual Reality (VR), real-time personalization and cloud-based gaming. Market players like Oculus and Valve are going to lead in creating some cost-effecting VR headsets which will further blur the lines between fantasy and reality.
On the other hand, real-time personalization technologies will allow gamers to play games that will be automatically generating content as per their preferences and playstyle. This customization is going to be possible by extracting data from the player’s game history.
Therefore, the gaming industry as a whole is undoubtedly going to be a profitable business for all its market players. The development of new games for the consumers is going to open avenues for retailers, distributors, gaming studios and game developers in the near future.