Video Game Market to Grow by USD 111.7 Billion (2025-2029), Boosted by Smartphone Penetration and Better Internet Access, AI Driving Market Transformation – Technavio

NEW YORK, Feb. 7, 2025 /PRNewswire/ — Report with the AI impact on market trends – The global video game market size is estimated to grow by USD 111.7 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  8.6%  during the forecast period. Rising penetration of smartphones and improving internet access is driving market growth, with a trend towards increasing popularity of gaming among women. However, increasing cost of game development  poses a challenge. Key market players include Activision Blizzard Inc., Apple Inc., Aristocrat Leisure Ltd., Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., Enad Global 7 AB, Epic Games Inc., Konami Group Corp., Krafton Inc., Microsoft Corp., MOBIRIX Corp., NetEase Inc., Nintendo Co. Ltd., Playtika Holding Corp., Roblox Corp., SEGA SAMMY CREATION INC., Sony Group Corp., Take Two Interactive Software Inc., and Tencent Holdings Ltd..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Video Game Market Scope
Read moreHollywood’s Barefoot Recording Studio Opens Its Doors Report Coverage	Details
Base year	2024
Read moreSeoul Dragon City Hotel Creates Dazzling Lighting Displays with HARMAN Professional Solutions Historic period	2019 – 2023
Forecast period	2025-2029
Read moreSymphony Orchestra Performs the Most Beloved Music and Songs from METAL GEAR! Growth momentum & CAGR	Accelerate at a CAGR of 8.6%
Market growth 2025-2029	USD 111.7 billion
Market structure	Fragmented
YoY growth 2022-2023 (%)	8.1
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 54%
Key countries	US, China, South Korea, Canada, Germany, India, UK, Japan, France, and Brazil
Key companies profiled	Activision Blizzard Inc., Apple Inc., Aristocrat Leisure Ltd., Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., Enad Global 7 AB, Epic Games Inc., Konami Group Corp., Krafton Inc., Microsoft Corp., MOBIRIX Corp., NetEase Inc., Nintendo Co. Ltd., Playtika Holding Corp., Roblox Corp., SEGA SAMMY CREATION INC., Sony Group Corp., Take Two Interactive Software Inc., and Tencent Holdings Ltd.

Market Driver

The video game market is experiencing significant trends with the rise of 3D games and 3D graphics. The advent of 5G networks is enabling faster download speeds and real-time gaming experiences. Adaptability and aesthetics are essential features for consumers, leading to the increasing popularity of games with experiences. Architecture and artificial intelligence are key innovations in game development, enhancing the interactive functionality of games. Audio effects, music, and narration add to the overall pleasure and relaxation for consumers. Businesses see potential in the gaming industry, with commercial software, cloud gaming services, and educational purposes driving growth. Esports tournaments and competitions attract professional video gamers, while increasing portability through mobile phones and consoles expand the reach of gaming. Hardware innovation and technologically advanced smartphones enable better graphics and performance. The gaming industry is transforming demographics, with rising urbanization and societal availability leading to a thriving profession for game creators and developers. The ubiquity of smartphones and online gaming services offer versatility and social interaction, making gaming an essential part of modern life. Virtual reality and augmented reality add to the experience, while streaming media services and open-source software cater to the changing consumer preferences. Primary market drivers include eye-hand coordination, fine-motor abilities, and the pleasure and relaxation that gaming provides. The potential customers are vast, from spectators to supporters, and the industry continues to evolve with specialized features, real-time strategy games, and first-person shooter games. The video gaming industry is a thriving business, offering a theatrical performance for consumers and providing a platform for innovation and entertainment. 

The video game market has experienced a significant demographic shift in recent years. Historically, male gamers have dominated the industry. However, the rise of mobile gaming has attracted a growing number of female gamers. According to recent studies, female gamers now account for approximately 45% of the gaming population in the US, a figure that is projected to rise. This demographic shift is expected to positively impact the sales of gaming merchandise, software, and hardware. Notable games like League of Legends, Grand Theft Auto, and World of Warcraft have already seen an increase in female players. This trend is a positive sign for the future growth of the video game industry. 

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

 Market Challenges

• The video game market is experiencing significant changes due to advancements in technology and shifting consumer preferences. Three-dimensional games with 3D graphics are becoming essential features for businesses aiming to attract potential customers. The rollout of 5G networks enhances the experience by enabling real-time, high-quality gameplay. Adaptability and aesthetics are key, with architectures and artificial intelligence (AI) driving innovation. Audio effects, augmented reality (AR), and virtual reality (VR) add to the interactive functionality. Game creators and developers are focusing on ease of accessibility through cloud gaming services, commercial software, and multi-player capabilities. Consumers, from professional video gamers to casual players, seek the full command offered by controllers, gamepads, and keyboards. Educational purposes, entertainment, and recreation are primary market drivers, with increasing portability through mobile phones and technologically advanced smartphones. Online games, streaming media services, and esports tournaments cater to the thriving profession of gaming. The ubiquity of smartphones and transforming demographics ensure the industry’s versatility and societal availability. Challenges include the need for hardware innovation, high-quality video games, and hyper-scale cloud capabilities. Consumer expectations for specialized features, such as eye-hand coordination and fine-motor abilities, continue to rise. The market remains competitive, with businesses vying for the number of gamers and their pleasure and relaxation. The video gaming industry’s potential is vast, with opportunities in music, narration, real-time strategy games, and spectatorship. The industry’s future lies in its ability to adapt to changing trends, provide an experience, and cater to the evolving needs of consumers.
• The demand for enhanced game content, including intricate characters, objects, stages, and visual effects, has driven up the cost of video game development. Developers utilize automated technologies like Speed Tree for authentic-looking vegetation, but large-scale projects also necessitate custom graphics creation, which increases expenses. Expert artists’ fees add to manufacturing costs, making game production a significant investment.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This video game market report extensively covers market segmentation by 

• Platform
• Mobile Devices
• Consoles
• Computing Devices
• Type
• Offline
• Online
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

1.1 Mobile devices-  The mobile devices segment led the global video game market in 2024, with its dominance continuing due to the increasing number of consumers using smartphones and tablets as their preferred gaming platforms. Mobile games are generally smaller in size and complexity compared to console or PC games, making them accessible to a broader audience, including casual gamers. With over 3.5 billion smartphone users worldwide, the market holds a vast potential audience. Mobile games are easily distributed via app stores like Apple App Store and Google Play. Their diversity in genres, from casual puzzles to complex multiplayer games, caters to various age groups and interests. Mobile games also leverage unique mobile capabilities, such as touchscreens and gyroscopes, for innovative gameplay mechanics. Additionally, the availability of offline mobile games will significantly boost adoption, particularly in rural areas, expanding the market’s reach and revenue.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

Online gaming has revolutionized the world of entertainment, allowing video gamers to immerse themselves in 3D games on various devices. With the advent of technologically advanced smartphones, mobile gaming has become a significant segment of the industry. The 5G network has further enhanced the gaming experience by enabling real-time strategy games and seamless multiplayer interactions. Game developers continue to push boundaries with cloud gaming services, leveraging hyper-scale cloud capabilities to deliver high-quality games on demand. Input devices like gamepads, controllers, keyboards, and more offer diverse options for players to enhance their gaming experience. Online gaming provides pleasure, relaxation, and even serves educational purposes. Whether it’s for competitions or casual play, video and computer games offer endless possibilities for entertainment. Streaming media services have also entered the fray, offering access to a vast library of games for subscribers. Overall, the future of gaming is bright, with innovation and advancements continually shaping the landscape.

Market Research Overview

The 3D games market is experiencing in growth with the advent of 5G networks, offering faster download speeds and real-time gaming experiences. Adaptability and aesthetics are essential features for modern gamers, leading to an increased demand for high-quality video games with experiences. Architecture, artificial intelligence (AI), and computer-generated effects are key components of the latest games, enhancing the overall gaming experience. Audio effects and narration add to the pleasure and entertainment value, while the rise of cloud gaming services and increasing portability make gaming more accessible than ever before. Consumers, both professional and casual, are drawn to the interactive functionality and social interaction offered by multiplayer games. The ubiquity of smartphones and technologically advanced hardware have transformed traditional games into mobile experiences, reaching a wider audience. Businesses are recognizing the potential of the gaming industry, leading to the development of new game titles and innovative hardware. Competitions, esports tournaments, and streaming media services have created a thriving profession for gamers, attracting potential customers from all walks of life. The gaming industry continues to evolve, adapting to changing consumer preferences and societal availability, offering a versatile form of recreation and relaxation.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Platform
• Mobile Devices
• Consoles
• Computing Devices
• Type
• Offline
• Online
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/video-game-market-to-grow-by-usd-111-7-billion-2025-2029-boosted-by-smartphone-penetration-and-better-internet-access-ai-driving-market-transformation—technavio-302369819.html

SOURCE Technavio