Thematic Intelligence: Video Games

The video games industry is constantly evolving, driven by changing player expectations, new monetization and distribution channels, and technological progress. Artificial intelligence (AI), augmented reality (AR), virtual reality (VR), esports, and cloud gaming are among the main themes transforming the industry.

Key Highlights

• The gaming software market was worth $219 billion in 2023 and will become a $337 billion industry by 2030, according to the analyst forecasts. Mobile gaming is the dominant segment, accounting for around 60% of global gaming software revenues by 2030, while cloud gaming will be the fastest-growing segment with a compound annual growth rate (CAGR) of over 33% between 2023 and 2030.
• Video game revenue grew by 25% in 2020 compared to the previous year as pandemic-related lockdowns drove demand. However, in 2022, the annual growth dropped to 2% as lockdowns lifted and rising inflation hit consumer spending. Growth remained depressed in 2023 at just 4% compared to the previous year, and significant layoffs due to over-ambitious hiring during the pandemic caused uncertainty across the industry. This and other macroeconomic factors have also caused a decline in video games-related M&A and venture financing activities since 2022.

Scope

• This report provides an overview of the video games theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It includes global market forecasts for gaming software and analysis of patent activity and hiring trends.
• It contains details of M&A deals driven by the video games theme, and a timeline highlighting milestones in the development of video games.
• The detailed value chain consists of four layers: creation, monetization, distribution, and device.

Reasons to Buy

• The video games industry is an ideal example of a hypercompetitive market. With low barriers to entry and lucrative revenue opportunities, the number of players in the market is continuously increasing. This report provides an invaluable guide to this disruptive theme. It includes comprehensive lists of the leading players across all aspects of the value chain, helping companies identify the right partners.