Trend Watch: Growth in the Gaming IndustryTrend Watch: Growth in the Gaming Industry
A recent report from Newzoo suggests that as we are moving toward a post-COVID society, the gaming industry will see growth – just in unexpected directions.
July 26, 2022
As COVID-19 restrictions are relaxing around the world, the video game industry is gearing up for a new era of gaming. Consumers are leaving their homes again, and supply chain disruptions are causing concern amongst many industries.
Even with these market conditions, a new report from Newzoo has revealed that in 2022, global games market revenues will reach $196.8 billion, up slightly by 2.1% year-on-year. However, due to these same market conditions, including the supply constraints as well as AAA game delays, Newzoo revised estimates from April, lowering the total from $203 billion. The pandemic and its resulting supply chain issues have slowed growth, but it hasn’t stopped it. Additionally, player numbers will grow by 4.6% to reach 3.2 billion in 2022, a result of gaming’s growing popularity among younger generations.
Players in regions like Latin America (315 million), Asia-Pacific (1.7 billion), and the Middle East and Africa (488 million) will drive much of the growth in 2022 and onwards. According to the report, 55% of global players are in Asia-Pacific, and the region has some of the fastest-growing markets worldwide.
The year-over-year growth in 2022 will be primarily driven by mobile, which will generate revenues of $103.5 billion this year (53% of the market), representing a growth of 5.1%. 2022 revenue growth for PC, which accounts for 21% of the market, is slight (up 1.6% year on year to $40.4 billion). Meanwhile, console will decline by 2.2% year on year to $52.9 billion.
Multiple trends in the gaming industry were singled out by Newzoo in the report, including the Asian market’s globalization in response to regulatory changes in the Chinese market, considering diversity and inclusion as a new strategy amongst gaming companies, in-game advertising campaigns, live services and subscriptions and more.
As these trends continue to evolve, the games market will continue to grow in the following years, reaching $225.7 billion in 2025, a 4.7% compound annual growth rate between 2020 and 2025. Newzoo forecasts that the games market will continue growing in a post-pandemic world, with companies like Tencent, Sony, Apple. Microsoft, Google, NetEase and more raking in consumer dollars.
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