Online Gaming Market
The global online gaming market generated USD 21.1 billion in 2020 and is estimated to reach USD 31.3 billion by 2025. The global mobile online gaming market is forecasted to grow more rapidly, from USD 95.1 billion in 2020 to USD 160.6 billion in 2025.
The overall online gaming is normally segmented on the basis of types, platform, device used or geographic regions. On the basis of types, the market is segmented into genres of games (platform games, rhythm games, battle royale, RPG, MMORPG, etc.).
Asia takes up 55% of all gamers worldwide, followed by Europe, Middle East & Africa with 28% (Statista 2020).
The global online gaming market is characterized by the presence of several vendors competing to gain market dominance. Key vendors in this market are - NetEase, Tencent, Sony, Nintendo, Electronic Arts, SEGA, Microsoft, Ubisoft, Activision Blizzard, Riot, etc. Other prominent vendors in the market include Big Fish Games, Bonfire Studios, Bungie, DoubleDown Interactive, Epic Games, Jam City, MobilityWare, PopCap Games, Zynga, etc.
In spite of high growth, the global online gaming market is still facing some challenges. Some of the major challenges faced by the industry are: lack of suitable software handling, cyber security issues and stringent government regulations along with security issues and tax rates.
At the same time, the global online gaming market is supported by various growth drivers such as growth of mobile online gaming, availability of high-speed internet services, rising ownership of gadgets (such as mobile, laptops, tablets), market consolidation and technological advancement, growing number of online women gamers. It seems evident that the mobile online gaming industry is successfully attracting the younger population. This should lead to market growth in the future.
Another major driver is the implementation of blockchain technology, especially NFT, that can change the industry dramatically, mainly through delivering a new level of transparency to online gaming. Blockchain technologies and smart contracts play a vital role in determining the independence of number generation and ensure the rules are enforced. They also boost customer’s confidence and interest. An online game that can operate in an automated, transparent and secure manner has the ability to earn instant credibility from the online gaming community, and nowadays many of new and existing game companies are concentrating their efforts on smart contract and NFT online gaming.
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