Online Gaming Market size is estimated at USD 114.5 billion in 2024 and is projected to reach USD 932.2 billion by the end of 2037, witnessing around 17.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of online gaming is evaluated at USD 134.6 billion.
The market is rising rapidly with the advancement in mobile technology and internet facilities. The increasing use of mobile technologies and improved internet connectivity has opened up lucrative opportunities for gamers across various age groups. With everyday expenses rising, players demand more immersive gaming experiences online on their day-to-day gadgets. Meanwhile, developers are focused on free-to-play models, which allow players not to pay out upfront and later monetize on in-game purchases.
Many governments across the globe have been contributing to the market growth through various campaigns and collaborations. For instance, the European Union has established programs to popularize eSports and digital skills among gamers that could drive the future of the market in the region. Second, the U.S. Department of Education, in September 2023, introduced the ED Games Expo, displaying the potential of education-based games and supporting game developers who focus on the same. All such initiatives are steadily broadening the horizons of gaming from just mere entertainment to impacting what games are going to be developed in the future.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
17.5% |
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Base Year Market Size (2024) |
USD 114.5 billion |
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Forecast Year Market Size (2037) |
USD 932.2 billion |
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Regional Scope |
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Model (Free-to-Play Games, Pay-to-Play Games)
Free-to-play or F2P segment is anticipated to capture over 87.5% online gaming market share by 2037. This business model by developers offers the game at no upfront cost while generating revenue from in-game purchases or advertisements, attracting a broad demographic, including casual and hardcore players. Some popular examples of the model include Fortnite and League of Legends. In January 2024, in-game purchases from Fortnite exceeded USD 1 billion, a clear indication of how this model works, enabling gamers to maintain high levels of engagement and profitability. In comparison, the F2P model allows for the possibility of scalability, hence enabling game developers to launch regular updates welcoming and retaining customers for more extended periods.
Streaming (Live Streaming, On-Demand Streaming)
Live-streaming segment in the online gaming market is likely to exhibit CAGR of around 21.5% from 2025 to 2037. Gaming services such as Twitch and YouTube are evolving the game into a spectator sport that attracts millions of viewers to watch live gaming events and streams. eSports and other features, including real-time chat donations have further made live streaming popular. For example, in March 2023, the Call of Duty World Championship had reached more than 534.2K hours watched through live streaming. With more streamers building loyal communities, brands and advertisers are also investing in these platforms, which are further stimulating market growth.
Our in-depth analysis of the global market includes the following segments:
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Model |
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Platform |
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Streaming |
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Gamer Type |
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Revenue Stream |
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Genre |
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Demographic |
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Asia Pacific Market Analysis
Asia Pacific online gaming market is predicted to dominate revenue share of around 36.7% by the end of 2037. This is driven due to countries such as China, Japan, and South Korea, which boast strong infrastructures for both mobile as well as PC gaming. High-speed internet is a necessity in online games, and affordable smartphones comprise key pillars of steps forward in this region. Moreover, the popularity of eSports and government initiatives to enroll gaming as a cultural and economic asset for some countries boost this trend even more.
India is poised to experience rapid growth in the online gaming industry through 2037. The penetration of smartphones and the affordability of data plans make many Indians more likely to play games. As a result, mobile gaming is likely to be one of the key factors guiding India towards becoming the leading country in Asia Pacific.
China represents the largest market in Asia, primarily because of its large gaming ecosystem. Companies such as Tencent and NetEase remain among the world's biggest game developers. In October 2022, Tencent's mobile game Honor of Kings set record revenues, and that signifies that China's mobile gaming culture is strong. However, the regulatory factors of limited gaming hours imposed on minors since March 2022 remain challenging for this industry, especially in reaching out to the younger segments.
North America Market Analysis
North America online gaming market is likely to grow at around 11.3% CAGR between 2025 and 2037. Growth in both the U.S. and Canada is likely to push North America online gaming industry forward. The region's market environment is characterized by high expenditure on gaming technology and a good presence of competitive eSports. This growth is fueled by high-speed infrastructure and significant online gaming.
The U.S. is still the biggest player in the North America market and the largest local companies are Microsoft, Sony, and Electronic Arts, among others. In January 2022, Microsoft sealed its acquisition of video game company Activision Blizzard worth $68.7 billion, confirming a deal that promises to change the future of gaming. The acquisition is described as strategic, whereby Microsoft increases its stake in mobile and cloud gaming.
The online gaming sector in Canada is also progressively rising with a focus on the development of talents and innovation in its game design. The government of Canada has continued to give support to the industry, which also includes tax incentives and funding for local developers through various initiatives. In February 2023, the Canadian Media Fund announced an investment of CAD 23 million to support interactive digital media projects, including video game development. This funding is supposed to contribute to the strengthening of local studios and reinforcing Canada's role in the North America market.
The online gaming market is fiercely competitive, dominated by key players such as Tencent, Sony, Microsoft, and Activision Blizzard. Indeed, with the emergence of technological advances in areas such as portfolio expansions across different platforms including console, mobile, and cloud gaming. For example, in August 2022, Sony made an encouraging move by acquiring Savage Game Studios to enter the field of mobile game development within the company's expansion plans for mobile gaming. This acquisition highlights the strategy Sony is taking in diversification beyond consoles into the lucrative and progressively developing mobile gaming market around the world. As investment in eSports, cloud gaming, and immersive technologies increases, so does competition to further spur innovation and global growth.
Here are some leading players in the online gaming market:
Author Credits: Abhishek Verma
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