Global gaming is expected to hit $256 Billion in sales by the year 2025. This forecast is due to the rising number of gamers all over the world, as well as the COVID-19 pandemic which forced many countries all over the world to order stay-at-home directives to their citizens.
While movies, video streaming, and online entertainment are available, online gaming seemed to make the biggest rise among all home entertainment options. In recent surveys conducted in the US, data reveals that people spent 45% more time playing video games compared to before the pandemic quarantines occurred.
The isolation caused by the lockdowns is estimated to be one of the main reasons behind that rise. Not only are people spending more time indoors, but they also crave activities that enable social interaction while social distancing and gaming excels in that area. Even board games have experienced a rise in play, with the game makers behind the trivia board game Boom Again reporting that a rising number of players have taken to playing their pop culture Baby Boomer board game through Zoom calls.
While global lockdowns are credited for some of the reasons for the rise in gaming, a report by Mordor Intelligence shows the steady rise of global gaming even before the pandemic.
In 2019, Mordor reported the global gaming market to be valued at USD 151.55 Billion. With more and more people staying or working at home, surveys reveal that this value is set to reach up to $256.97 Billion by the year 2025. In a report published by New Zoo, recent data is used to forecast the spending of online gamers in 2020, which is expected to be at $159.3 Billion, followed by $200 Billion by the year 2023.
The Asia Pacific region is seen to be the biggest player in the global market, where countries such as China, Japan, and South Korea show the highest potential in this forecasted market growth.
Aside from quarantine lockdowns, several key factors are credited for this emerging booming market. One of which is the invention and boom of cloud gaming. Advances in cloud technology have caused this new sector to become a serious competitor to traditional game markets. In cloud gaming, a server does all the computation work for games, which includes video streaming, game scene rendering, and game logic processing video encoding.
Cloud gaming companies such as G-Cluster, Gaikai, Onlive, StreamMyGame, and others are already offering commercial cloud gaming services in the market, prompting major video game players to create partnerships with Online for the distribution of their games. Some of these major video game players include Sega, Disney Interactive Studios, Warner Brothers, Epic Games, and Atari.
Another key factor in global gaming market growth is the emergence of eSports. Originally created in South Korea, eSports such as Dota2 and Riot Games with League of Legends have become some of the most influential actors in the platform. Though the country has been surpassed by the US in terms of eSports revenue, South Korea still hosts one of the biggest eSports tournaments in the world.
More factors that contribute to this forecasted rise in revenue include the emergence of startups, as well as the rise in Smartphone gaming. In the last two years, a 200 Million growth in the number of gamers was witnessed, along with multiple technological advancements in mobile devices. Large companies with consoles and PC software have created their very own mobile versions of games to keep up with the emerging trend, which has only added to the increase of the mobile games market.
With more people staying at home, spending more time on their phones, as well as the technological advancements occurring all over the world, the global gaming market is seen as one of the fastest-growing among all business sectors.