Generative AI in Gaming Global Market Report 2024

The generative AI in gaming market size has grown exponentially in recent years. It will grow from $1.19 billion in 2023 to $1.47 billion in 2024 at a compound annual growth rate (CAGR) of 23.9%. The growth observed during the historical period can be attributed to various factors, including heightened competition in the gaming industry, a growing demand for player-centric content, the necessity for scalability and flexibility in game design, cost and time efficiency in game development processes, and the increasing prominence of procedural content generation techniques.

The generative AI in gaming market size is expected to see exponential growth in the next few years. It will grow to $3.39 billion in 2028 at a compound annual growth rate (CAGR) of 23.2%. The forecasted growth is driven by the integration of generative AI into VR and AR games, demand for dynamic game worlds, emergence of AI-driven game assistants, and integration into game streaming platforms. Major trends include AI-generated NPCs, dynamic storytelling, collaborative AI design, real-time AI content generation, and integration into game design tools.

The burgeoning gaming industry is poised to drive the expansion of generative AI within the gaming market in the foreseeable future. Renowned for its dynamism and rapid evolution, the gaming sector encompasses various facets, including video games, esports, gaming hardware, and software development. Generative AI, a cutting-edge technology, has emerged as a transformative force within the gaming industry, revolutionizing game development, content creation, and player experiences. For instance, Uswitch Limited, a UK-based price comparison service and switching website, reported that the total valuation of the UK video game consumer market surged to £7.05 billion ($7.57 billion) in 2022, marking a substantial 17% increase compared to 2021. Additionally, digital game sales in the UK witnessed a notable uptick of one million units between 2021 and 2022, climbing from 61 million to 62 million. Consequently, the rapid growth of the gaming industry is fueling the proliferation of generative AI within the gaming market.

Prominent companies operating in the generative AI segment of the gaming market are heavily invested in developing technologically advanced products, notably AI-driven game design instruments, to gain a competitive edge. These game design instruments harness artificial intelligence (AI) to augment and streamline various facets of the game development process. For instance, Bitmagic, a UK-based provider specializing in blockchain technology and RPG-based virtual gaming metaverse platforms, unveiled its groundbreaking generative AI-powered game development platform in November 2023, which was made accessible to the public through a closed alpha program. This innovative platform empowers individuals, even those lacking extensive development experience, to materialize their game concepts in 3D. Users can articulate their ideas through simple text prompts, and leveraging advanced AI capabilities, Bitmagic swiftly transforms these descriptions into fully playable games. Distinguished as the world's first platform capable of generating fully playable games from a single prompt, Bitmagic's platform showcases unparalleled efficiency in rapidly creating game assets and seamlessly arranging them within game scenes, offering a glimpse into the future of game development powered by generative AI.

In October 2023, Game Theory, an Indian sports technology company, finalized the acquisition of Matchday AI Technologies Pvt. Ltd. for an undisclosed sum. This strategic move is aimed at strengthening Game Theory's commitment to innovation in sports gaming through the integration of technology into real sports experiences. Matchday AI Technologies Pvt. Ltd., also based in India, specializes in artificial intelligence-driven sports and gaming solutions, making it a strategic addition to Game Theory's portfolio as they seek to enhance the intersection of technology and casual real sports.

Major companies operating in the generative ai in gaming market report are Google LLC, International Business Machines Corporation, NVIDIA Corporation, Baidu Inc., Microsoft Game Studios, Activision Blizzard Inc., Electronic Arts Inc., Titan AI Inc., Square Enix Holdings Co. Ltd., Ubisoft Entertainment SA, Unity Technologies Inc., Sony Interactive Entertainment LLC, Rockstar Games Inc., SideFX Software Inc., Kata.ai, Pyka Inc., Promethean AI Inc., Sixfold AI Limited, Illumix Inc., Charisma.ai Limited, Bounti Labs Inc., OpenAI LP, Latitude Technologies Inc., Apex Game Tools, AidaMask, Procedural Arts LLC, Martian Lawyers Club Inc., Rival Theory Inc., Latitude Technologies Inc., Selas Studio.

Asia-Pacific was the largest region in the generative AI in gaming market in 2023. The regions covered in the generative ai in gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative ai in gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative AI in gaming involves applying artificial intelligence (AI), specifically generative models, to create and enhance various aspects of video games. It encompasses the generation of content, environments, characters, and entire game worlds, offering players a dynamic and immersive gaming experience.

The primary types of techniques in generative AI for gaming include deterministic and nondeterministic approaches. Deterministic techniques involve predictable and straightforward algorithms used in game development for tasks such as image enhancement, level generation, scenario and story creation, managing in-game complexity, and designing non-player characters. End users of these techniques include game studios, developers, designers, artists, and other stakeholders involved in game development.

The generative AI in gaming research report is one of a series of new reports that provides generative AI in gaming market statistics, including the generative AI in gaming industry's global market size, regional shares, competitors with an Generative AI in gaming market share, detailed generative AI in gaming market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in gaming industry. This generative AI in gaming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative AI in gaming market consists of revenues earned by entities by providing services such as procedural content generation (PCG) for dynamic level design, object placement, and terrain creation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in gaming market also includes sales of products such as dynamic level design tools, procedural content generation systems, and adaptive narrative engines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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