Online Gaming Market Analysis

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: