Online Gaming Industry Growth Projections in 2020
Introduction
The online gaming industry has seen exponential growth. There are more online slots available that have boosted the online gaming industry. The current article details the online gaming industry growth projections in 2020.
Growth Trends
The global online gaming market was estimated to be over $150 billion in 2019. It is expected to grow at a fast CAGR of 12.9% from 2020-2027. Innovation in hardware and software combined with technological proliferation are the key drivers of online gaming. The Internet has become more accessible and cheaper globally. This had been a major push factor for the growth and popularity of online gaming. The game design, storylines, etc. have also improved drastically over the years. This provides an improved and realistic end-user experience to the gamers.
The gaming console market is expected to grow at a CAGR of 6.8% to $45.2 billion. It will accommodate more than 729 million users. The engagement and revenues are poised to grow due to people staying indoors during COVID-19 times. PC gaming is driven by 1.3 billion players. It is expected to grow at 4.8% to $36.9 billion in 2020. Across all the gaming segments (mobile, PC, and console), nearly half of all consumer spending will come from the U.S. and China.
Impact of COVID-19
COVID-19 continues to take its toll on the global economy. However, the online gaming industry has been benefited from it. Governments globally have imposed lockdowns and home quarantine. This has mandated people to stay indoors in their homes. This has led more people to play online games. The total number of hours users spent online for gaming has increased drastically during this period. The gaming industry has realized this trend and is offering compelling offers to lure more customers. Activision Blizzard Inc. released Call of Duty: Warzone as a free download in March 2020. The game witnesses more than 6 million downloads on a single day.
There have been some negative impacts of the COVID-19 pandemic too. Most prominent gaming companies have suffered from delayed product launches. It has also impacted hardware production and supply chains. This is mostly due to the closing of various manufacturing facilities in China.
Device Insights
Mobile phone penetration has been a major driver for the online gaming industry. More gamers prefer the convenience of enjoying their favorite games on the move. The mobile device segment led the market in 2019 with a 35% market share. This is likely to increase further in the coming years. Mobile gaming will generate revenues of $77.2 billion in 2020 and register a CAGR of 13.3%. Mobile online gaming has the lowest entry barrier. Nearly 40% of the world’s population has a smartphone and many mobile titles are free to play. The mobile gaming development process is simpler and is less likely to be impacted by COVID-19 like pandemics.
Tablets have emerged as popular mobile gaming devices. They offer larger screens, better viewing angles, and mobility. Handheld gaming consoles are also becoming popular gaming devices among gamers. They can capture a greater market share in the future.
The console segment is poised for growth. They offer the advantage of high-end displays and a quality sound system. This gives you a more realistic and better gaming experience. You can also enjoy features like recording and online sharing of in-game footage. Some high-end gaming consoles also provide a dynamic simulation that offers a life-like gaming experience.
Future Outlook
The online gaming industry will continue to grow steadily during 2018-2023 with a CAGR of 9.4%. It will exceed $200 billion by 2023. New and improved consoles will be launched which will trigger growth in console gaming revenues. Mobile gaming will continue to be the fastest-growing segment. The demand for multiplayer games will increase. In-game communication and end-user experience are also likely to improve drastically. Social media platforms will play an important role in the proliferation of the online gaming industry. They will provide a virtual platform for the growth and expansion of the industry. The Asia-Pacific region will continue to be the biggest driver for the online gaming industry. The region had a share of 50% of the total online gaming global market in 2019. This can be largely attributed to the emergence of China as a major global online gaming hub.