Online Games Market Size, Share, Growth, and Industry Analysis, By Type (IOS, Android and Windows), By Application (Smartphone & Tablet, PC, TV and Other), Regional Forecast To 2031

Updated On: 15 April 2024

Online Games Market Report Overview

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The global online games market size was in USD 120820 million 2021 & the online games market is expected to reach USD 381798 million by 2031, exhibiting a CAGR of 12.1% during the forecast period. 

The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The online games market is a subset of the video game industry in which games are largely played and accessed via online platforms such as the internet. In this market, players can connect to servers and communicate in real-time with other players, generally in a multiplayer environment. Role-playing games (RPGs), first-person shooters (FPS), battle royales, real-time strategy games (RTS), massively multiplayer online game (MMOs), and more genres can be found in online gaming. Online game connects people from all over the world, allowing for social engagement, competitiveness, and collaboration in virtual spaces. Many online game include persistent environments, which continue to exist and expand even when a player logs out. This can involve environmental changes, player-driven economies, and so on.

COVID-19 Impact: Increased Player Engagement to Boost Market Growth

Due to lockdowns and social distancing measures, there was an increase in demand for entertainment options, especially online gaming. Many people turned to internet games to kill time, connect with friends, and escape the stress of the pandemic. The number of new and returning gamers in the online game business increased significantly. This resulted in more players in multiplayer games, longer play periods, and more social interaction in virtual environments. As conventional retail outlets closed or decreased their operations, digital sales of games and in-game content increased significantly. Players went online to buy and download games, expansions, and microtransactions.

While some online game saw increased revenue as a result of increased involvement, others had difficulties as players' financial situations were damaged by the pandemic. The usefulness of microtransactions and in-game purchases as a source of revenue was called into question. The discontinuation or conversion of major gaming events, conferences, and expos to virtual formats damaged game publishers' ability to display new titles and communicate with their communities. The increased visibility and participation during the epidemic helped to cement the online game market's status as a significant source of amusement and revenue. This expansion will almost certainly have long-term ramifications for the industry's future development and investment.

LATEST TRENDS

"Cloud Gaming and Streaming Services to Enhance Market Growth"

Cloud gaming platforms such as Google Stadia, NVIDIA GeForce Now, and Xbox Cloud Gaming (formerly Project xCloud) were gaining popularity. These platforms let gamers to stream games straight to their devices, eliminating the need for powerful gear. With a rising quantity of high-quality games and more user engagement, mobile gaming has remained a dominant force in the online games business. On mobile platforms, games like "Among Us," "Genshin Impact," and numerous battle royales became quite popular. Cross-platform play was becoming more popular, allowing gamers on multiple devices (such as consoles, PCs, and mobile) to play together. This approach sought to make gaming more inclusive and smoother.

Online Games Market Segmentation

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• By Type

Based on type market is classified as IOS, android and windows.

• By Application

Based on application market is classified as smartphone & tablet, pc, tv and other.

DRIVING FACTORS

"Technological Advancements to Augment Market Growth"

Technology advancements, such as improved internet connectivity, increased computing power, and upgraded graphics capabilities, have enabled more immersive and engaging online gaming experiences. Because of the widespread availability of high-speed internet and the growth of mobile devices, it is now easier for gamers to connect and play games online. Online games create communities and friendships by providing a platform for social engagement and connection with friends and gamers from all over the world. Because these games are played online, they can cross geographical barriers, allowing players from many countries and cultures to communicate and play together. The implementation of the free-to-play model, which allows games to be accessed without making an initial purchase, has considerably increased the player base and made online games more accessible to a wider audience.

"Microtransactions and In-Game Purchases to Propel Market Growth"

Microtransactions and in-game purchases have provided developers with a consistent cash stream, allowing gamers to purchase virtual goods, cosmetics, and other modifications. With the emergence of esports, online games have received more attention, with competitive tournaments, leagues, and events attracting both players and fans. The rise in popularity of streaming services such as Twitch and YouTube has aided the expansion of the online gaming sector by allowing players to exhibit their skills and engage with audiences. The use of live service models, in which games receive continuing updates, expansions, and events, aids in the long-term retention of player involvement. The rise of mobile gaming has broadened the online games business, making games more accessible to people who are not typical players.

RESTRAINING FACTORS

"Monetization Challenges to Impede Market Expansion"

Online gaming requires access to high-speed internet and compatible devices. Potential players may be limited in locations with weak infrastructure or limited access to technology. While microtransactions and in-game purchases can generate money, too aggressive or abusive monetization practises can result in player resentment and governmental scrutiny. Online game frequently necessitates the creation of accounts and the sharing of personal information. Some people may be put off by concerns about data privacy, hacking, and cybersecurity. Online gaming communities can be exclusionary or unwelcoming to particular demographics in some situations, which may dissuade new players from participating in the market.

Online Games Market Regional Insights

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"Asia Pacific to Dominate the Market Due to Considerable Internet Penetration"

Asia Pacific, has a dense population and considerable internet penetration. This means that internet games have a vast potential user base. Asia Pacific has a large cultural presence in gaming. With a lengthy history of arcade gaming and console culture, video games are strongly integrated into the leisure and social fabric of these nations. Asia Pacific country have been quick to adopt new technologies, such as high-speed internet and mobile devices, both of which are required for online gaming. It is in particular, is a pioneer in esports infrastructure and professional gaming leagues, making the region a hotspot for esports and competitive gaming and lead online games market share.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Tencent (China)
• Netease (China)
• Microsoft (U.S.)
• Sony (Japan)
• Electronic Arts (U.S.)
• Sega (Japan)
• Ubisoft (France)
• Nintendo (Japan)

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.