Over the last few decades, the online gaming industry has exploded into a worldwide phenomenon.
As a result, technology and internet connectivity continue to become more efficient.
The gaming market grows further, with millions of players making billions yearly.
So, if you want to know how big the online gaming industry is, you must check out this guide until the end
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The Current Landscape of the Online Gaming Industry
The global market for online games was approximately $70 billion in 2021, with forecasts indicating that the figure will exceed $100 billion by 2025.
This development is propelled by the uptake of numerous pivots, namely smartphones going mainstream, the internet becoming more broadly available, and esports on a massive rise.
The sector is inclusive of a breadth of gaming categories, such as mobile games, PC Games, and console video games.
Revenue Breakdown by Segment
Mobile Gaming
Almost half of all the revenue generated by online gaming is from mobile games.
Smartphone availability and free-to-play with in-app purchases allowed the market to become larger and due to this users can easily experience top games for free.
We are talking about the titles such as “Candy Crush,” “PUBG Mobile” and of course, everyone's favourite COD.
PC Gaming
Despite playing third fiddle to the PS4 and Xbox One, PC games are still a massive part of 2016 – particularly in regions like Asia and Europe.
Well-known titles in the $100 million revenue bracket, League of Legends and Spearheaded by those games.
Console Gaming
Console games are another big moneymaker, but they have been declining in their share of the market over time relative to mobile.
Meanwhile, the segment has been kept alive with continued interest from some of pop culture's biggest brands like COD.
Esports and Streaming
Esports has been one of the significant sources of expansion in today's industry.
F1 sports are also commercialized at the highest level, with competitive gaming tournaments streamed to an audience and supported by sponsorships, advertising media rights, etc.
While it may be far from the boxing ring, gaming as a spectator sport has opened up significantly due to streaming platforms such as Twitch and YouTube Gaming.
Key Growth Drivers in the Online Gaming Industry
Several factors explain the growth of the online gaming industry:
Technological Advancements
Various technology devices such as cloud gaming, virtual reality (VR), and augmented reality (AR) gave a new phase flair to game lovers.
Cloud gaming services like Google Stadia and NVIDIA GeForce Now let you play your games on any screen without a need for beefy hardware.
VR and AR (virtual reality, augmented reality) capabilities to deliver the games in vivaciously engaging modes.
Wider Internet Access
More and more people play games online these days thanks to the proliferation of high-speed internet — including 5G networks.
With faster and more dependable internet connections, games such as RTS, MMORPGs, and multiplayer shooters started to flourish in the world of gaming.
Esports and Competitive Gaming
Over the years, Esports has evolved from a hobby into a multi-billion dollar industry.
Years later, grand tournaments such as “League of Legends World Championship” are pulling in millions upon millions.
These include sponsorship deals, prize pools, and media rights, which are significant sources of revenue for the business.
Geographical Distribution of the Online Gaming Market
Online gaming is a global market making revenues across key regions:
Asia-Pacific: The Largest Market
Asia-Pacific has the largest market share of total online games revenue in the world, capturing nearly half.
China, South Korea, and Japan all have gigantic gaming cultures with massive player bases supporting their own thriving esports scene.
Fuelled by the appetite for mobile games and growing interest in esports, China alone has billions of dollars at stake.
That's all for now from our end on how big the online gaming industry is. We hope you found this guide helpful.
