Artificial Intelligence (AI) in video games refers to the use of computer algorithms and systems to perform intelligent and responsive actions to non-player characters (NPCs) and entities in the game and can interact with them. It involves mimicking human-like behavior, emotions, and decision-making. In addition, AI is responsible for determining the best path for NPCs to navigate through the game world. Pathfinding algorithms calculate the most efficient route from one point to another, accounting for obstacles and terrain. This ensures that NPCs move realistically and can follow the game's level design.
The key factors that drive the growth of the AI in video games market include emergence of high bandwidth network connectivity and increased processing power. The proliferation of smartphones has vastly expanded the user base for mobile games. This increased audience presents a lucrative market for game developers to implement AI-driven features, as they can reach a more diverse and substantial player demographic. Smartphones are powerful tools for collecting user data, including gameplay preferences, habits, and behaviors. Furthermore, the continuous improvement in processing capabilities especially graphics processing units (GPUs) and central processing units (CPUs) is considered an important driver for the growth of AI in the video game market. However, increase in complexity and lack of expertise will hinder the growth of the market. AI in video games requires complex algorithms and models. These algorithms must take into account a wide range of variables including player behavior, environmental interaction, and non-player character (NPC) behavior. Complexity increases with sophisticated AI behaviors such as decision-making, strategy, and adaptability. Contrarily, the continuous demand for 3D games is expected to contribute to the growth of the AI in video games market during the forecast period. 3D games aim to provide lifelike graphics and environments. AI-powered graphics rendering techniques, such as ray tracing and image upscaling, can enhance the visual fidelity of 3D games. This results in more immersive and visually appealing gaming experiences.
The AI in video games market is segmented on the basis of component, technology, genre, and region. On the basis of component, the market is categorized into hardware, software, and service. On the basis of technology, the market is divided into machine learning, natural language processing, computer vision, gesture control, and others. On the basis of genre, it is divided into action, adventure, puzzle, simulation, role playing, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the AI in video games market such as Ubisoft, Google DeepMind, Inworld AI, NVIDIA Corporation, Unity Technologies, Latitude.io, Electronic Arts Inc., PrometheanAI Inc., Rockstar Games, and SideFX. These players have adopted various strategies to increase their market penetration and strengthen their position in the AI in video games market.
The key factors that drive the growth of the AI in video games market include emergence of high bandwidth network connectivity and increased processing power. The proliferation of smartphones has vastly expanded the user base for mobile games. This increased audience presents a lucrative market for game developers to implement AI-driven features, as they can reach a more diverse and substantial player demographic. Smartphones are powerful tools for collecting user data, including gameplay preferences, habits, and behaviors. Furthermore, the continuous improvement in processing capabilities especially graphics processing units (GPUs) and central processing units (CPUs) is considered an important driver for the growth of AI in the video game market. However, increase in complexity and lack of expertise will hinder the growth of the market. AI in video games requires complex algorithms and models. These algorithms must take into account a wide range of variables including player behavior, environmental interaction, and non-player character (NPC) behavior. Complexity increases with sophisticated AI behaviors such as decision-making, strategy, and adaptability. Contrarily, the continuous demand for 3D games is expected to contribute to the growth of the AI in video games market during the forecast period. 3D games aim to provide lifelike graphics and environments. AI-powered graphics rendering techniques, such as ray tracing and image upscaling, can enhance the visual fidelity of 3D games. This results in more immersive and visually appealing gaming experiences.
The AI in video games market is segmented on the basis of component, technology, genre, and region. On the basis of component, the market is categorized into hardware, software, and service. On the basis of technology, the market is divided into machine learning, natural language processing, computer vision, gesture control, and others. On the basis of genre, it is divided into action, adventure, puzzle, simulation, role playing, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the AI in video games market such as Ubisoft, Google DeepMind, Inworld AI, NVIDIA Corporation, Unity Technologies, Latitude.io, Electronic Arts Inc., PrometheanAI Inc., Rockstar Games, and SideFX. These players have adopted various strategies to increase their market penetration and strengthen their position in the AI in video games market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global AI in video games market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global AI in video games market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global AI in video games market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Component
- Hardware
- Software
- Service
By Technology
- Machine Learning
- Natural Language Processing
- Computer Vision
- Gesture Control
- Others
By Genre
- Action
- Adventure
- Puzzle
- Simulation
- Role playing
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Google DeepMind
- Ubisoft
- NVIDIA Corporation
- Unity Technologies
- Electronic Arts Inc.
- SideFX
- PrometheanAI Inc.
- Rockstar Games
- Latitude.io
- Inworld AI Solutions Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: AI IN VIDEO GAMES MARKET, BY COMPONENT
CHAPTER 5: AI IN VIDEO GAMES MARKET, BY TECHNOLOGY
CHAPTER 6: AI IN VIDEO GAMES MARKET, BY GENRE
CHAPTER 7: AI IN VIDEO GAMES MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the ai in video games market was valued at $1.1 billion in 2022, and is estimated to reach $11.4 billion by 2032, growing at a CAGR of 26.8% from 2023 to 2032.The AI in Video Games Market is likely to experience a significant growth rate of 26.8% from 2023-2032 owing to increasing market demand for machine learning technology
AI in video gaming refers to responsive and adaptive video game experiences. These AI-powered interactive experiences are usually generated via non-player characters, or NPCs, that act intelligently or creatively, as if controlled by a human game-player. AI in video games works to improve players’ gaming experience by making the virtual world more dynamic, complex and immersive. It plays a key role in various aspects of game development including human behavior, enemy design, world interaction, and system content generation.
The key factors that drive the growth of the AI in video games market include emergence of high bandwidth network connectivity and upsurge in the penetration of smartphones. The proliferation of smartphones has vastly expanded the user base for mobile games. This increased audience presents a lucrative market for game developers to implement AI-driven features, as they can reach a more diverse and substantial player demographic. Smartphones are powerful tools for collecting user data, including gameplay preferences, habits, and behaviors. Furthermore, the continuous improvement in processing capabilities such as graphics processing units (GPUs) and central processing units (CPUs) is considered an important driver for the growth of AI in the video games market. However, increase in complexity and lack of expertise will hinder the growth of the market. AI in video games requires complex algorithms and models. These algorithms must consider a wide range of variables including player behavior, environmental interaction, and non-player character (NPC) behavior. Complexity increases with sophisticated AI behaviors such as decision-making, strategy, and adaptability.
The market also offers growth opportunities to the key players in the market. The continuous demand for 3D games is expected to contribute to the growth of the AI in video games market during the forecast period. 3D games aim to provide lifelike graphics and environments. AI-powered graphics rendering techniques, such as ray tracing and image upscaling, can enhance the visual fidelity of 3D games. This results in more immersive and visually appealing gaming experiences. Therefore, these factors are expected to drive the growth of AI in video games market in upcoming years.
The AI in video games market is segmented on the basis of component, technology, genre, and region. On the basis of component, the market is categorized into hardware, software, and service. On the basis of technology, the market is divided into machine learning, natural language processing, computer vision, gesture control, and others. On the basis of genre, it is divided into action, adventure, puzzle, simulation, role playing, and others. Region wise, it is analyzed across North America (the U.S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Ubisoft, Google DeepMind, Inworld AI, NVIDIA Corporation, Unity Technologies, Latitude.io, Electronic Arts Inc., PrometheanAI Inc., Rockstar Games, and SideFX. The players in the market have been actively engaged in the adoption various strategies such as collaboration, product launch, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in May 2023, Google launched PaLM 2, a next generation language model. A general-purpose AI model called PaLM 2 can be used to power chatbots in the ChatGPT manner, as well as to create code, translate across languages, analyze and react to photos. Combining those abilities would allow a user to ask a question about a restaurant in Bulgaria in English, and the system would be able to search the web for Bulgarian responses, find an answer, translate the answer into English, add a picture of the location, and then follow up with a code snippet to create a database entry for the place. Moreover, in March 2023, F5 Side FX collaborated with Apple Inc. and launched Houdini Apple Silicon to coincide with H19.5.534 production build. The Houdini Apple Silicon build is built natively for macOS arm64 so Mac users can take full advantage of the power of Apple silicon M1 and M2 chips. Such strategies foster AI in video games market growth.
Key Market Insights
By component, the hardware segment was the highest revenue contributor to the market, and is estimated to $4.93 billion by 2032, with a CAGR of 24.7%. However, the software segment is expected to be the fastest growing segment with the CAGR of 29.1% during the forecast period.By technology, the machine learning segment dominated the global market, and is estimated to reach $2.88 billion by 2032, with a CAGR of 22.4%. However, the others segment is expected to be the fastest growing segment with the CAGR of 31.1% during the forecast period.
By genre, the action segment dominated the global market, and is estimated to reach $1.94 billion by 2032, with a CAGR of 20.9%. However, the role-playing segment is expected to be the fastest growing segment with the CAGR of 32.0% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $407.51 million in 2022, and is estimated to reach $3.57 billion by 2032, with a CAGR of 24.5%.
Companies Mentioned
- Google DeepMind
- Ubisoft
- NVIDIA Corporation
- Unity Technologies
- Electronic Arts Inc.
- SideFX
- PrometheanAI Inc.
- Rockstar Games
- Latitude.io
- Inworld AI Solutions Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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