Game Engine Global Market Report 2024

The game engine market size has grown rapidly in recent years. It will grow from $3.15 billion in 2023 to $3.56 billion in 2024 at a compound annual growth rate (CAGR) of 13.2%. The growth observed in the historical period can be attributed to the ascent of the video game industry, advancements in graphics processing, the proliferation of multiplatform gaming, the development of open-source game engines, and the globalization of the gaming industry.

The game engine market size is expected to see rapid growth in the next few years. It will grow to $5.77 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be attributed to advancements in ray tracing and real-time rendering, the rise of cloud gaming and streaming services, the integration of artificial intelligence (AI), and the incorporation of blockchain and NFTs (Non-Fungible Tokens), along with a focus on accessibility and inclusivity features. Major trends expected in the forecast period encompass collaboration and community building, the expansion of cloud-based gaming, cross-platform development, support for virtual reality (VR) and augmented reality (AR), and the adoption of subscription-based models.

The game engine market is anticipated to experience significant growth in the coming years, primarily driven by the increasing demand for mobile devices. Mobile devices, which are portable electronic tools with built-in or wireless connectivity features, are witnessing a surge in global shipments. According to the International Data Corporation (IDC), the expected global shipments of used mobile devices, including reconditioned and pre-owned smartphones, are projected to reach 282.6 million units in 2022, marking an 11.5% increase from the 253.4 million units recorded in 2021. This growth trend is predicted to continue, with IDC forecasting that used smartphone shipments will reach 413.3 million units by 2026, showcasing a compound annual growth rate (CAGR) of 10.3% from 2021 to 2026. The pivotal role played by game engines in the development of mobile games is essential for their success and optimal performance on these mobile devices. Consequently, the escalating demand for mobile devices is a key factor contributing to the expansion of the game engine market.

The increasing popularity of online gaming is also fueling the growth of the game engine market. Online gaming involves playing video games over the internet, often featuring multiplayer interactions that enable players from different locations to participate in virtual environments. Game engines play a crucial role as foundational software frameworks, powering the development, rendering, and interactive functionalities of online games. They provide essential tools for game creation and player engagement in this evolving landscape. As of March 2023, data from Allcorrect Games, a China-based gaming company, revealed that approximately 552.4 million people in China engaged in online gaming, resulting in a penetration rate of 52.6% in 2022. Furthermore, according to the Entertainment Software Association of Canada in December 2023, around 23 million Canadians, accounting for 61% of the population, participated in video games. Hence, the growing popularity of online gaming stands as a driving force behind the expansion of the game engine market.

The primary impediment to the growth of the game engine market during the forecast period is the absence of cloud infrastructure. Cloud infrastructure is essential for game developers as it enables them to adjust their resources based on fluctuating demands. Without access to such infrastructure, developers face challenges in handling the variable requirements of game engine development and online gameplay, resulting in performance issues and scalability constraints. For instance, a March 2022 survey by the SANS Institute revealed that smaller organizations, constituting only 3%, use public cloud infrastructure with 11-20 providers in organizations. Consequently, the deficiency in cloud infrastructure is impeding the expansion of the game engine market.

Key players in the game engine market are actively introducing innovative technologies to solidify their market position. One such technology is community-driven sports AI game engines, specifically designed for creating sports-themed video games incorporating artificial intelligence (AI) elements. These engines are developed with substantial input from a community of game developers, enthusiasts, and users. For example, in August 2023, LootMogul, a US-based athlete-led sports technology platform, launched MogulX.ai, allowing users to create AI avatars (non-player characters or NPCs) and utilize LootMogul's open AI architecture for game development. This community-driven sports AI game engine encourages collaboration among athletes, fans, and game developers to create AI-driven sports games.

In August 2022, NetEase Inc., a Chinese-based provider of gaming and internet services, acquired Quantic Dream SA for an undisclosed sum. This acquisition aims to provide NetEase with substantial resources, facilities, and execution capabilities, potentially transforming the interactive entertainment experience. Quantic Dream SA, a France-based developer of video games, operates within the game engine market.

Major companies operating in the game engine market report are Amazon.com Inc., Epic Games Inc., Stride Inc., Unity Software Inc., Upwork Inc., QBurst, G2, Crytek GmbH, Hyperlink InfoSystem, Appinventiv Technology Pvt. Ltd., Belitsoft, The NineHertz, Algoworks Solutions Inc., Silicon Studio Crop, VironIT, Daffodil Software, Redwerk LLC, Dev Technosys, Solarus Thecnologies Inc., YoYo Games Ltd., Softeq Development Corporation, GameSalad, Scirra Ltd., Corona Labs Inc., Clickteam LLC, Stencyl, and Delta Engine GmbH, Argentics.

Asia-Pacific was the largest region in the game engine market in 2023. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the game engine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the game engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A game engine serves as a software framework or platform crafted to streamline the design, development, and implementation processes of video games and interactive digital experiences. It serves as the foundational technology that equips game developers with a diverse range of tools, libraries, and features to accelerate the creation of games. Beyond gaming, these engines are frequently employed in applications such as animation and film production, interactive simulation, research, and data visualization.

The primary types of game engines include 3D game engines, 2.5D game engines, 2D game engines, and others. 3D game engines are specifically designed software frameworks or platforms for the development, creation, and execution of three-dimensional (3D) video games and interactive digital experiences. These engines encompass various components, solutions, and services tailored for different platforms such as mobile, console, and computer. Additionally, they cater to various game genres, including action and adventure, multiplayer online battle arena (MOBA), real-time strategy (RTS), role-playing games (RPG), sandbox, shooter (FPS and TPS), simulation, sports, and others. These engines are utilized by diverse end-users such as game development studios, independent developers, academic and research institutes, among others.

The game engines market research report is one of a series of new reports that provides game engines market statistics, including the game engines industry global market size, regional shares, competitors with game engines market share, detailed game engines market segments, market trends and opportunities, and any further data you may need to thrive in the game engines industry. This game engines 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 game engine market includes revenues earned by entities by providing services such as graphics rendering, user interface (UI) design, physics simulation, and audio services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The game engine market consists of sales of products such as Marmalade SDK, AppGameKit, Godot, and Unreal Engine. 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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