How Much Is the Gaming Industry Worth in 2024?

Gaming started through arcade games where players take turns until one loses. However, in the 21st century, gamers now have a variety of devices to play from, such as:

• PCs
• Consoles
• Mobile Devices

All of these aim to satisfy the gaming needs of the ever-growing gamer community. The gaming market continues to rise with innovations and the latest gadgets.

Discover how much the gaming industry has grown, from gaming companies to the latest trends.

How Big is the Gaming Industry?

The nationwide lockdowns due to COVID-19 pushed the growth of the gaming industry to unprecedented lengths. Gaming companies exceeded many expectations, especially in 2023, after widespread public offerings, mergers, and acquisitions were introduced globally.

The gaming market is estimated at $245.10 billion in 2023, growing at a CAGR of 8.94%. It will reach $376.08 billion in value by 2028 as it increasingly becomes a pillar of modern entertainment for its global audience.

1. The gaming market’s worth is predicted to reach $545.98 billion by 2028.

(Globe Newswire, Increditools)

Almost half a trillion dollars are in store for the gaming industry. Moreover, gaming statistics point to a growth rate of 13.20% for the 2022–2028 period. The game market includes:

• PC gaming
• Console
• Social or casual gaming
• In-game purchases

In 2023, PC gaming's annual revenue was forecasted to reach $25.5 billion. On the other hand, console gaming will amount to $30 billion. Social or casual gaming will generate revenue of $185.8 billion, while in-game purchase spending will be worth $68 billion.

Considering that there are currently 3 billion active gamers worldwide, there will be an exponential climb in gaming industry revenue in the coming years.

2. The video games segment will hit a sales volume of $521.6 billion by 2027.

(Statista) 

The market is set to continue at a 2.29% annual rate for 2020–2024. The video games market worldwide, with a growth rate of 7.89% between 2023 and 2027, will reach a market volume of $521.6 billion in 2027.

Sony, Microsoft, and Tencent are the top-grossing companies based on video gaming revenue in 2022, with Sony having 13%, while Microsoft and Nintendo have 8% and 7% market share, respectively – accounting for 29% of the global gaming market. 

The three gaming giants made $52.6 billion in gaming revenues, compared to $131.4 billion generated by the rest of the worldwide gaming industry.

3. VR Gaming will surpass $2.4 billion in global revenue by 2024.

(Academy of Animated Art) 

In comparison, the 2022 figure is projected at $1.6 billion. After earning $1.1 billion in 2020, this niche gaming industry predicts to double by 2024, reaching over $2.4 billion.

Immersive gaming, or VR gaming, is 20 times more interesting than traditional games. Samsung is still the most prominent VR company worldwide. 

Still, even up-and-comers, such as Bigscreen VR and AltspaceVR, are fast progressing into the future of virtual games, much quicker than many expect.

Similarly, augmented reality or AR also follows the same upward trend. The total revenue for AR is set to hit $340 billion by 2028. 

4. Asia-Pacific claims the most significant global gaming revenue, with $96.3 billion.

(Market Watch) 

The Asia Pacific digital gaming market will grow at a CAGR of 23.1%, leading to a revenue of $241.56 billion by 2023. At the same time, the region's income is set to be over $96.3 billion by the end of 2022. 

They further claim that Asia-Pacific will remain the world's most significant digital gaming market, with expectations for a 3.4% annual growth. Most e-gamers are in Asia, and gaming companies also target these countries.

5. At $45.8 billion, China boasts the most significant video games market worldwide.

(Statista) 

China ranks first among the major gaming markets in the world. The country expects to generate $45.8 billion. The country’s online games industry has the highest number of users, about 650 million, and revenue of about $45 billion in 2022. 

It retained its industry leadership even after Chinese regulators stopped approving “Banhao” game monetization licenses for nearly 8 months before resuming approvals in April 2022. 

Their online gaming companies have methodically entered global markets, moving from development- and publishing-only strategies to co-development with multinational companies. 

These moves have helped China-domiciled mobile game makers raise their aggregate market share in the global mobile games market from less than 10% in 2017 to 22% by the end of 2022.

6. Mobile games’ revenue will be $286 billion by 2023.

(Statista) 

In 2021, mobile games accounted for almost half the worldwide video game industry revenue. Meanwhile, the 2022 gaming industry trends are definitive: mobile penetration rates and gaming smartphone usage continue to skyrocket globally.

Revenue in the mobile games market is projected to reach $286.50 billion in 2023. User penetration will be 25.1% in 2023, and with a 29.2% growth rate by 2027, the number of users will increase to 2.32 billion. 

Crucial Findings About the Video Games Industry

Mobile gaming has become increasingly popular in recent years and is expected to continue in 2023. With the rise of 5G technology, mobile games will become even more accessible and offer more immersive gameplay experiences. 

Mobile game revenue is projected to reach $286.50 billion in 2023. With an annual growth rate of 7.08%, it will reach the projected market volume of $376.70 billion by 2027.

7. The 2022 video game industry revenue was $220.79 billion.

(Bank My Cell) 

The segment grew exponentially during the pandemic. Video games generated $220.79 billion in 2022. Experts predict this number will continue to increase to $249.32 billion in 2023.

Sony had a market share of  13%. In comparison, Microsoft and Nintendo had 8% and 7% market share, respectively. Overall, these three contenders account for 29% of the global gaming market. 

The three gaming giants made $52.6 billion in gaming revenues, compared to $131.4 billion generated by the rest of the worldwide gaming industry. 

8. As of 2023, about 51% of video gamers in the US are male.

(Statista) 

Currently, there are approximately 212 million gamers in the US. About 51% of video gamers in the US are male, while 49% are female. Gaming is still predominantly male, and most games cater to male gamers.

9. The average revenue per user in the video games segment in 2022 was $84.71.

(Statista, Gamesradar) 

The industry is thriving with 2.7 billion mobile gamers. Besides social media, smartphone users spend most of their time on video gaming apps.

The average revenue per user (ARPU) in the video games segment in 2022 was $84.71, which will increase to $143.80 in 2023. The ARPU in 2022 in the global gaming segment was $99.45, compared to $10.95 ARPU in the physically sold video games segment.

10. Casual and hyper-casual games rule the mobile gaming world.

(Statista) 

It was forecasted to go over $21 billion in revenue by end-2022. Moreover, its 2022–2027 CAGR is expected at 8.91%, resulting in $24.07 billion in earnings. 

Mobile phone users and smartphone owners rely on casual or hyper-casual games to pass the time, causing a trend within mobile gaming.

11. The global e-sports audience surpassed over half a billion in 2022.

(Newzoo) 

The global e-sports audience grew by 8.7% yearly to reach 532 million in 2022 and is projected to reach 640 million by 2025. China also has the highest number of audiences at 260 million.

Venues can only hold some people willing to attend. Overwatch and LoL leagues are supposed to have their own built in the future. Even now, new e-sports arenas are under construction— for example, the LCK e-Sports Stadium in Seoul or Full Sail University’s arena in Florida.

12. e-sports revenues are forecasted to reach over $1.41 billion in 2023.

(Globe Newswire) 

The industry recorded net earnings of over $1 billion the previous year. The e-sports market, with a CAGR of 14.5%, is projected to grow from $1.41 billion in 2023 to $3.62 billion by 2030.

The market is expanding due to more games being streamed live, more viewers, and better infrastructure for league events. 

13. FIFA22 was the best-selling game in the UK for 2022.

(Statista) 

Even though it was released on October 1, the game still managed to top the list, finishing the year with 2.54 million copies of FIFA23.

Call of Duty: Modern Warfare II took the second spot with 1.6 million sales. The top three are completed by Elden Ring, with 865,262 in sales.

FIFA’s overall success is attributed to its detailed player animations and realistic stadium environments, making it popular with hardcore and casual gamers.

14. Activision Blizzard is the largest video game company, with a total revenue of $67.06 billion in 2023.

(Statista) 

Activision Blizzard holds an estimated market cap of $61.41 billion in May 2022 but has increased to $67.06 billion as of April 2023.

Coming second is Japanese giant Nintendo, with a market share of $47.8 billion as of April 2023. They have created some of the most popular video games, including Animal Crossing and Mario Cart.

Electronic Arts is third in line, estimated at $35.12 billion. They are responsible for FIFA and Star Wars games.

15. Players worldwide spent $41.2 billion on mobile games and in-app purchases in Q1 2022.

(SensorTower, Statista) 

The data combines AppStore ($25.6 billion) and Google Play figures ($15.6 billion). The top two grossing games are Honor of Kings and PUBG Mobile. 

American gamers also spent over $60 billion on games in 2021. 40% of them also made in-app purchases for gaming apps. 

16. The average age of a gamer in 2023 is 33 years old.

(Headphones Addict) 

It is a common misconception that gamers are young. However, the median age for gamers is 33. The age group representing the highest number of players is between 18 and 34, with 38%. 

Next on the list are those under 18, with 20%. Gamers older than 65 years comprise only 7%, making them the least common age group. There are several causes why only a few people under 18 or older than 65 play video games. 

While gaming is a great form of entertainment, it comes with risk, especially when users are exposed to it for long periods. Prolonged exposure to video games can cause several issues, such as:

• vision problems
• bodily aches
• sedentary lifestyles
• mental health problems 

Make sure to play in moderation, folks!

The Gaming Industry in 2023 and Beyond

The global game market will grow from $175.8 billion in 2021 to over $200 billion in 2024. Mobile gaming is rapidly outgrowing the gaming industry and has taken up 61%of the entire market share last year.

With its majority market share and an experimental approach driven by lower development costs, mobile leads the gaming industry, where others will ultimately follow. 

Below are the emerging trends in the gaming market that will shape the industry beyond 2023.

17. Cloud-based subscription services are currently the hottest trend.

(Forbes) 

Google, Nvidia, Sony, Microsoft, and all other big players are betting hard on a streaming, cloud-based future. This means that all players needed for streaming are smart devices, which lessens the likelihood of spending a fortune on expensive hardware.

Interest in cloud gaming has grown by 105% in the last few years, further proving such gaming experiences' skyrocketing popularity.

However, there are still limitations blocking such progress. Among them are a fast and reliable internet connection, robust infrastructure, and adapting old or different business models.

18. The future of the gaming industry is immersive.

(Mistplay) 

Gaming has intertwined with the metaverse, creating more innovative in-game experiences as of 2023. In fact, 48% of gaming studios develop VR/AR games due to their popular demand among gamers.

This technology will allow the development of virtual products that will mingle with social media, marketplaces, VR experiences, gaming, and anything one can imagine.

VR alone already has 171 million users globally. The adoption of immersive innovations will likely speed up exponentially in the coming years due to faster internet speeds, coupled with cheaper services and receptive audiences.

Besides immersive gameplay experiences, mobile gaming also moved to smart devices like the Apple Watch. 35% of Apple Watch users can access games such as Chess, Classic Snake Game, Tiny Armies, and more. 

19. Nostalgia is a powerful tool…

(LurkIt) 

There will likely be more remakes and reboots, as most of these old games do not run on the latest computer tech, and older gamers want to experience these games again without the hassle of downgrading PC parts. 

It’s a universal trait. Many modern gamers long to return to past games and feel this wave of calmness that makes time stand still. Gamers revisit familiar worlds, and old concepts give a fresh spin. 

Some developers are making remakes of old games. Remade games such as The Last of Us, Resident Evil, and Dead Island Remastered are hitting the charts for both old and new gamers.

20. High-fidelity or hyper-realistic games are on the rise.

(Arm)

Many game developers are becoming interested in creating ultra-realistic graphics. Video game trends indicate that China tops the category in terms of revenue. 

In 2021, 88 of the country’s top 200 grossing iOS games were high-fidelity. They contributed to 69.9% of the top 200’s total revenues. This is an increase compared to the 2016 revenue share of high-fidelity games, which was 42.3%.

21. Subscriptions are finding their way into the gaming industry.

(Swrve) 

3 in 4 Millennials report using such services. Players can access massive libraries varying from new titles to familiar and loved ones. On a developers’ plus side, the method offers a built-in audience and an effective tribune to present their latest ventures.

22. The gaming industry is diversifying and is starting to adopt personalized gaming features.

(ExplodingTopics) 

Like the rest of the world, the 2022 gaming industry focused on equality and proper representation. There is a significant shift towards both male and female characters. 

Most games now allow users to customize their character to any gender that is appealing to them. Games such as Assassin’s Creed Valhalla and Cyberpunk 2077 enable gamers to choose their characters’ characteristics. 

Developers see this as a way to reach more audiences, diversifying their market.

23. Make way for live streaming...

(Future Market Insights) 

Streaming is all the rage these days and will continue this trend. e-sports and games streaming’s market value is worth $2.3 billion in 2022 and is likely to reach $7.2 billion by 2032.

China expects to register the largest market share during the abovementioned forecast. The Chinese e-sports and game streaming market will make up over 4.4% of the entire sector ($319.1 million) by 2032.

Twitch also saw immense growth due to its popularity with gamers. In 2023, the platform hosted 10 million streamers. Many of them have become micro-celebrities in their niches.

Wrap-Up

The gaming industry continues to grow with new releases. The market for new games and experiences will change as more gamers enter the gaming world.

For 2023, developers and gamers expect to see new trends, such as hyper-realistic games, remakes of old classics, to advances in the mobile gaming market.

By 2028, the video game market expects to generate $435 billion in sales. Casual and hyper-casual games rule the mobile gaming world. Sony Interactive Entertainment is the rich kid of video game companies. As an industry, it is more significant than even Hollywood.