Video Games Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2035

The global market value of video games market was estimated at USD 301.2 billion in 2024 and is projected to grow at a CAGR of 12.3% during the forecast period. Rising demand for immersive digital entertainment, increasing disposable income, and urbanization are significantly driving the market. The growing dependency of teenagers on smartphones for leisure time is a key factor in the market's substantial growth. The expansion of cloud gaming, mobile accessibility, and growth in esports ecosystems foster widespread user engagement and monetization opportunities.

Mobile gaming has become the fastest-growing segment of the video game industry, fueled by the global proliferation of affordable smartphones and advancements in mobile GPU/CPU performance. The increase in mobile internet access, particularly in emerging markets, opens new demographics and revenue streams. Approximately 3.2 billion active video game players exist worldwide. Demand for video games in the education sector also contributes to market growth.

The rising success of the esports industry is further boosting market growth. The widespread adoption of smartphones and increased internet affordability enhance market demand. High smartphone usage in emerging markets, along with localized game content, plays crucial roles in user acquisition. Competitive mobile esports and live streaming are becoming increasingly popular.

Growth Drivers

The expansion of cloud gaming, mobile accessibility, and esports ecosystems promotes increased user engagement and monetization opportunities. Furthermore, advancements in real-time graphics, AI-based game development, and the integration of technologies like AR/VR and blockchain are accelerating market adoption. The rising demand for mobile gaming is a key driver in the market. Developers increasingly adopt mobile-first strategies, creating games with intuitive touch interfaces, session-based gameplay, and in-app monetization models such as microtransactions and battle passes.

The growth of mobile internet access, particularly in emerging markets, unlocks new customer bases and revenue streams. Additionally, rising disposable incomes and urbanization in countries like China, Japan, South Korea, and India have led to greater spending on entertainment, including video games. The increased adoption of cloud gaming is expected to fuel growth in the video game market during the forecast period, and this trend is likely to continue in the future. Cloud gaming provides not only affordable and enjoyable entertainment for gamers but also opens up a plethora of advantages for companies across various industries.

Surging demand for video games from Generation Z is also driving market growth. For instance, in February 2022, Red Magic, the smartphone brand known for its devices with cooling fans, unveiled “7,” which is the global variant of its 2022 flagship gaming smartphone. The growing use of 3D, high-definition graphics, sound effects, virtual reality (VR), and augmented reality (AR) in games has made them more visually appealing and functionally advanced, thereby capturing the attention of a vast consumer base. The increasing popularity of PlayStations and mobile games has proliferated the demand for video games, driving growth in the market. The mobile technology boom in recent years has significantly fueled the market's growth.

Segmentation

Video Games Market by Component

·         Hardware

·         Software

·         Services

o   Design Software

o   Inspection Software

o   Printer Software

o   Scanning Software

Video Games Market by Technology

·         Selective Laser Melting (SLM)

·         Electron Beam Melting (EBM)

·         Direct Metal Laser Sintering (DMLS)

·         Stereolithography (SLA)

·         Others

Video Games Market by Application

·         Prototyping

·         Tooling

·         Functional Parts

Video Games Market by Material

·         Metal

·         Polymer (Plastic)

·         Composite

Video Games Market by End-Product

·         Aircraft

·         Unmanned Aerial Vehicles (UAVs)

·         Spacecraft

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Video Games Market by End-Product

Based on the end products, the video games market is segmented into aircraft, unmanned aerial vehicles, and spacecraft. UAVs (unmanned aerial vehicles) are the leading segment and are expected to dominate the market. UAVs, often known as drones, are well-known for their versatility and affordability. The military segment, in particular, is a major driver for UAV development due to their advantages in surveillance, reconnaissance, and intelligence gathering.

The market encompasses various genres, including sports games, with data analytics playing a pivotal role in enhancing user experience. Game engines and user interfaces are essential components of game development, enabling the creation of immersive and harmonious gaming experiences. Augmented reality technology and advanced game controllers have revolutionized the industry, providing innovative gaming solutions. Game testing ensures the quality of games before their release, while social media and game streaming platforms expand their reach. Game physics and network programming are critical elements for the development of first-person shooters and racing games.

Video Games Market by Material

Based on the material, the Video Games market is segmented into metals, plastic, and composite. Plastics can be molded into various forms, making them ideal for manufacturing, large volumes of game console housing, controllers, VR handsets, and accessories. Plastics are lightweight and durable and improve their durability. Plastics are easily colored, textured, or shaped enabling creative designs for gaming hardware. Monetization strategies, such as in-game purchases and subscriptions, have become essential for game publishers to recoup their investments in intellectual property (IP) and development costs. Competitor analysis is crucial for game developers to stay competitive and meet the evolving demands of players. Mobile devices have expanded the reach of gaming, making it accessible to a broader audience. In conclusion, the market is dynamic, with a focus on innovation, player engagement, and monetization strategies to generate revenue.

Video Games Market by Component

Based on the components, the video games market is segmented into hardware, software, and services. Software is the leading segment of the video game market and is expected to maintain its dominance during the forecast period. This includes the games themselves (e.g., AAA titles, indie games), game engines (like Unity and Unreal Engine), and the development tools used to create them. Software is the product that players purchase or access to play, making it the primary source of revenue for the industry. While consoles and PCs are necessary for playing games, the hardware market is often regarded as separate from the software market, even though they are interconnected. 

Hardware sales are significant, with consoles like the PlayStation 5 and Xbox Series X/S competing for market share, but software drives the overall value of the gaming ecosystem. This segment includes online gaming platforms such as Steam, PlayStation Network, and Xbox Live, as well as subscription services like Xbox Game Pass and PlayStation Plus. These services facilitate game distribution, online multiplayer, and access to a vast library of games, contributing to the overall revenue.

Regional Outlook

Based on the regions, the video game market is analyzed into five regions: Asia-Pacific, North America, the Middle East and Africa, and Europe. Asia-Pacific is the leading region in the video game market and is expected to dominate during the forecast period due to large populations of video game players in countries like China and India. The large, tech-savvy populations in China, India, and South Korea include many individuals aged around 35. This youth population is highly tech-oriented and engages extensively in mobile, PC, and console gaming.

High smartphone penetration, affordable internet data plans, and the popularity of free-to-play games with in-app purchases have contributed to this growth. The region is home to major game developers and publishers like Tencent, NetEase, and Sony Interactive. Moreover, the Asia-Pacific region is the epicenter of e-sports, with events contributing to revenue. Rising disposable incomes in emerging economies like India, Vietnam, Indonesia, and China are creating new waves of gamers.

Many countries actively support game development as part of their digital economy strategies. Governments invest in tech education, gaming zones, and industry incentives. Gaming is deeply embedded in the daily lives of people. Gaming cafes and mobile-based social gaming are widespread and culturally accepted. In recent years, technological advancements in cloud gaming services, such as Google Stadia and Steam Link, have made it possible to play games from anywhere in the world. Additionally, increased rapid internet penetration has made high-speed internet more accessible.

The rising consumer preference for multiplayer games has fueled the growth of esports competitions globally. Esports competitions resemble sports tournaments such as FIFA, NBA, and others, where professional players participate as teams representing a country or region. First-person shooter games, fighting games, card games, real-time strategy games, and multiplayer online battle arena games are some of the genres in these tournaments. The market has observed an exponential rise in the inclination of individuals toward competitive multiplayer mobile games. Esports has become a global phenomenon, and games such as PlayerUnknown's Battlegrounds (PUBG) and Call of Duty (COD) are highly popular. These games follow a multiplayer game format, allowing gamers to interact with their counterparts, thus contributing to higher engagement. Game testing, quality assurance (QA), and level design are crucial aspects of game development, ensuring a harmonious balance between game mechanics, player retention, and revenue generation. Intellectual property (IP) and game licensing are essential considerations for game publishers, while network programming and game consoles are foundational technologies. The presence of key players in the market is the reason behind the growth.

AI programming and player engagement are becoming increasingly important, with esports organizations and professional gamers driving competition and innovation. Game testing, quality assurance (QA), and level design are crucial aspects of game development, ensuring a harmonious balance between game mechanics, player retention, and revenue generation. Intellectual property (IP) and game licensing are essential considerations for game publishers, while network programming and game consoles are foundational technologies. AI programming and player engagement are becoming increasingly important, with esports organizations and professional gamers driving competition and innovation.

Key Players

·         Spirit

·         Melrose Industries

·         Booz Allen Hamilton

·         Stratasys

·         EOS GmbH

·         Danaher

·         Formlabs

·         ExOne

·         Other Players