NEW
YORK, July 18, 2024 /PRNewswire/ -- The global
subscription based gaming market size is estimated to grow by
USD 7.79 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 12.17% during the forecast period. Enhanced features
of next-generation gaming consoles is driving market
growth, with a trend towards emergence of mobile cloud
video gaming. However, impacts of piracy on subscription based
gaming poses a challenge. Key market players include Alphabet
Inc., Amazon.com Inc., Apple Inc., BLACKNUT, Blade SAS, Capcom Co.
Ltd., Electronic Arts Inc., Epic Games Inc., Gimzawy, Microsoft
Corp., NEOM Co., Netflix Inc., Nintendo Co. Ltd., NVIDIA Corp.,
Roblox Corp., Sony Group Corp., Take Two Interactive Software Inc.,
Tencent Holdings Ltd., Ubisoft
Entertainment SA, and Ziff Davis Inc..
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report
Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Genre (Action,
Adventure, Shooting, Sports, and Others), Device (Smartphones,
Console, and PC), and Geography (APAC, North America, Europe, South
America, and Middle East and Africa)
|
Region
Covered
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
Alphabet Inc.,
Amazon.com Inc., Apple Inc., BLACKNUT, Blade SAS, Capcom Co. Ltd.,
Electronic Arts Inc., Epic Games Inc., Gimzawy, Microsoft Corp.,
NEOM Co., Netflix Inc., Nintendo Co. Ltd., NVIDIA Corp., Roblox
Corp., Sony Group Corp., Take Two Interactive Software Inc.,
Tencent Holdings Ltd., Ubisoft Entertainment SA, and Ziff Davis
Inc.
|
Key Market Trends Fueling Growth
Cloud gaming is a service that allows users to access and play
games hosted on remote servers through Internet-connected devices.
These games can be accessed for free or through paid subscriptions.
Microsoft's Xbox Game Pass is an example of a subscription-based
cloud gaming service, offering over 100 games for approximately
USD15 a month. Cloud gaming
eliminates the need for high-end hardware, making it an attractive
option for non-core gamers and those with limited storage and
processing capacity on mobile devices. The global
subscription-based gaming market is expected to grow due to the
increasing popularity of cloud gaming.
The Subscription-based gaming market is experiencing a surge due
to the COVID-19 pandemic and lockdown regulations. Cloud-based
subscription games, such as Google for Games and Xbox Cloud Gaming,
are becoming increasingly popular. Competitive genres like Action
and Adventure, represented by titles like Call of Duty, Warcraft,
Overwatch, Crash Bandicoot, and Guitar Hero, dominate the scene.
Newzoo reports a competitive space with service providers like
Activision Blizzard, Sumo Group, and Turtle Rock Studios. Console
gaming and PC gaming continue to coexist, with VR (Virtual Reality)
and Hyper-casual game genre gaining traction. Minecraft Earth, PUBG
Mobile, and others benefit from a Covid-related surge in consumer
bases. CTR (click-through rate) is high for offline games during
lockdowns. The market remains competitive, with console gaming and
PC gaming continuing to dominate but cloud-based games gaining
ground.
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Market Challenges
- In the digital gaming industry, piracy poses a significant
challenge to publishers and vendors in the subscription-based
gaming market. Unauthorized copying, downloading, and sharing of
non-licensed content deter publishers from investing heavily in
game development. This issue primarily impacts the digital and
packaged gaming segments, which are the primary sources of gameplay
in the subscription-based gaming market. As a result, revenue
generation is projected to be adversely affected during the
forecast period. Publishers, though not direct participants, are
indirectly affected due to their partnerships with console
manufacturers. Approximately 20% of gamers engage in illegal
downloading, primarily through peer-to-peer systems, websites,
blogs, and stream-ripping applications. The increasing instances of
cyber threats and piracy are anticipated to impede the expansion of
the global subscription-based gaming market.
- The subscription-based gaming market faces several challenges
in terms of profitability for Small and Medium Enterprises (SMEs).
Device type and game type segmentations pose action for SMEs, as
they must cater to various device types like smartphones and gaming
consoles, and diverse game genres such as action, shooting, sports,
adventure, fighting, and role-playing. Availability of Augmented
Reality (AR) and Virtual Reality (VR) games adds to the complexity.
The action segment, including games like shooting and fighting,
dominates the market. Gamer perception and decision-making skills
influence the choice of subscription games. The COVID-19 pandemic
and the resulting remote work environment have led to increased
leisure time and a surge in mobile gaming. Subscription services
like Streamlabs, Stream Hatchet, and Twitch have emerged, offering
AR, VR, and artificial intelligence (AI) capabilities. Smartphone
penetration and internet access are essential factors, with
high-end smartphones and IoT driving growth. Estimations suggest
cloud-based gaming solutions will dominate the subscription
economy. Hardware sales decline as gaming platforms shift to
subscription business models, according to the Zoo report.
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challenges - Download a Sample Report
Segment Overview
This subscription based gaming market report extensively covers
market segmentation by
- Genre
- 1.1 Action
- 1.2 Adventure
- 1.3 Shooting
- 1.4 Sports
- 1.5 Others
- Device
- 2.1 Smartphones
- 2.2 Console
- 2.3 PC
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Action-
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Blockchain Gaming Market is experiencing rapid
growth, driven by the rising popularity of
decentralized gaming platforms that offer enhanced
security, transparency, and ownership of digital assets. Key
players are innovating to integrate blockchain technology, creating
new opportunities for gamers and developers alike. The global
Gaming Software Market continues to expand, fueled by increasing
demand for immersive gaming experiences and advancements in
technology such as AR and VR. Major companies are investing in
cutting-edge software solutions to enhance gameplay, attract
diverse audiences, and drive revenue growth.
Research Analysis
Subscription-based gaming services have revolutionized the way
we play games, offering a steady stream of content for a monthly
fee. These services provide additional benefits beyond the games
themselves, such as exclusive in-game items and discounts on
digital purchases. With the pandemic keeping many at home, these
services have become a popular choice for engaged audiences seeking
new forms of leisure time entertainment. Gaming consoles and PCs
are not the only platforms for subscription-based gaming. Augmented
reality (AR) and virtual reality (VR) offer immersive experiences,
while cloud-based gaming solutions allow access to high-end games
on low-end devices. Smartphone penetration and internet access have
expanded the reach of subscription games to mobile gamers.
Subscription-based gaming services have also embraced emerging
technologies like artificial intelligence (AI), IoT, and
microtransactions. The action genre, in particular, has seen
significant growth, with subscription services offering access to
the latest action and adventure games. Twitch and other streaming
platforms have further enhanced the subscription-based gaming
experience, allowing players to connect with each other and share
their gameplay in real-time. The subscription economy continues to
grow, with gaming platforms offering a wide range of genres, from
action to adventure, to cater to diverse audiences.
Market Research Overview
The Subscription-based Gaming Market is a rapidly growing
segment in the gaming industry, offering players unlimited access
to a library of games for a monthly fee. Subscription-based gaming
services provide additional benefits, such as discounts on
microtransactions and paid downloads, creating an engaged audience
for operators. The market encompasses various gaming sectors,
including Action, Shooting, Sports, Adventure, Fighting,
Role-playing, and Racing, available on Smartphones, Gaming
Consoles, and PCs. The use of Artificial Intelligence (AI) and
Augmented Reality (AR) in games enhances the user experience. The
subscription economy is thriving, with key vendors like Google for
Games, Activision Blizzard, and Microsoft's Xbox offering
cloud-based gaming solutions. The COVID-19 pandemic and lockdown
regulations have accelerated the adoption of subscription-based
gaming, with an increase in remote work environments and leisure
time. The Action and Adventure genres dominate the market, with
gamer's perception and decision-making skills influencing their
choices. The prices for subscription-based gaming services vary,
with some offering free trials and flexible plans. The availability
of high-end smartphones and widespread internet access have
contributed to the growth of mobile gamers. IoT and hardware sales
are also impacted by the subscription economy. The risks associated
with subscription-based gaming include the potential for service
disruptions and dependency on a stable internet connection. SMEs in
the gaming sector are also adopting subscription business models to
reach a wider audience and generate profit. The market is expected
to continue growing, with estimations of over USD159 billion in revenue by 2025. Streamlabs,
Stream Hatchet, Twitch, and other service providers are also
capitalizing on the trend towards subscription-based gaming. The
future of the market looks bright, with the integration of AI and
VR technologies set to revolutionize the gaming experience.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Genre
-
- Action
- Adventure
- Shooting
- Sports
- Others
- Device
-
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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