Global Industry Analysts Inc., (GIA) the premier market research company, today released its market study report titled “Video Games – Global Market Trajectory & Analytics.” The report presents fresh perspectives on opportunities and challenges in a significantly transformed post-COVID-19 marketplace. The report predicts that the global video games market will reach $270.3 billion by 2026.
Major factors promoting growth in the global market for video games are the technological advancements in software and hardware, increased internet access, increased smartphone penetration, and easy access to games. The global video games market continues to grow at a healthy rate, surpassing revenues of the music industry and box office revenues. Video gaming revenues are dependent completely on consumer spending levels, although the business model has changed considerably in recent times.
Unlike earlier times, present-day consumers tend to purchase fewer games but spend greater time on these games. Consequently, the business model is shifting towards the recurring type of revenue being generated by an active user base, which contrasts with the earlier model that relied on sales of single units. Due to this changing business model, the focus on video game industry players is on increasing the per-user engagement rates. For this, companies are looking to develop highly engaging games and also looking to adopt innovative in-game monetization opportunities.
The integration of additional downloadable content such as expansion packs, characters, tools, and new features presents gaming companies with added avenues to generate revenues. Such a business model has evolved in line with improvements being witnessed in Internet connectivity, especially mobile Internet services, and advancements in gaming hardware, which are enabling users to gain access to a wide range of high-quality games across varied platforms and devices. Mobile gaming in fact currently accounts for a growing share of revenue generation for the video gaming industry.
Mobile Games, one of the segments analyzed in the report, is projected to record an 11.5% CAGR and reach $153.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the console games segment is readjusted to a revised 9.2% CAGR for the next 7-year period.
In the global PC Games segment, the USA, Canada, Japan, China, and Europe will drive the 4.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of $26 billion will reach a projected size of $37 billion by the close of the analysis period. China will remain among the fastest-growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach $4.8 billion by the year 2026, while Latin America will expand at a 4.9% CAGR through the analysis period.
(All information was provided by Cision PR Newswire)
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