The video games market will more than double to become a $300 billion-plus industry by 2025, according to GlobalData.
According to the company’s latest thematic report, ‘Video Games’, the market will grow from $131 billion in 2018 to $305 billion in 2025, at a compound annual growth rate (CAGR) of 13 per cent.
Mobile gaming has already outstripped the console games and personal computer (PC) games markets. Over the coming years, with the increased maturity of cloud gaming technology (supported by 5G), more gamers will shift towards mobile gaming platforms, driving the expansion of this market to over $100 billion by 2022, up from $55 billion in 2018.
Ed Thomas, Principal Analyst for Technology Thematic Research said, “Today’s video games industry is in the throes of a huge transformation from a product-oriented business to an as-a-service model. At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of gaming.”
Streaming will drive gaming’s future. Thomas said, “Cloud gaming is evolving into a global phenomenon. Major games companies are racing to become the Netflix of games, driven by rapidly increasing viewership on existing streaming channels.”
Latency and bandwidth limitations, however, will serve as a brake on the development of mobile gaming services.
“The maturing of cloud technologies and development of 5G will reduce these network issues, creating an increasingly competitive market in which several leaders have already emerged,” Thomas said.