56% of the growth will originate from APAC for the gaming market. China, Japan, and South Korea (Republic of Korea) are the key markets for gaming in APAC. Market growth in APAC will be faster than the growth of the market in other regions. The increasing penetration of e-sports in developing countries, such as Taiwan, Malaysia, and Singapore will facilitate the gaming market growth in APAC over the forecast period. The gaming market is set to grow by USD 125.65 billion from 2020 to 2025 at a CAGR of 12% as per the latest report by Technavio.
Gaming Market: Integration of blockchain technology to drive growth
The integration of blockchain technology in the gaming industry is enabling players to trade in-game virtual assets with other competing players and facilitate peer-to-peer transactions. The specified technology is being adopted by several gaming companies and gaming console manufacturers. Microsoft recently announced its plan to roll out blockchain technology for Xbox. The integration of blockchain is expected to provide fast and secure payment networks and allow game developers to monetize their gaming services immensely. The integration of blockchain technology will provide substantial growth opportunities for gaming companies during the forecast period, driving the growth of the gaming market size.
Gaming Market: Regulation over loot boxes may impede the market growth
The regulation over loot boxes will be a major challenge for the gaming market. Loot boxes are digital boxes or packages consisting of in-game items that are sold for money or in-game currency. The use of loot boxes in games has been viewed as an unauthorized form of online gambling and an addictive practice, particularly for children. As a result, governments in many countries, such as China, Japan, Belgium, and Australia, have introduced strict regulations regarding the use of loot boxes during the design and release of games in those countries. These regulations might have a negative impact on the market growth as loot boxes account for a major chunk of in-app purchases.
Gaming Market: Segmentation Analysis & Revenue Generating Segment
This market research report segments the gaming market by Type (Casual gaming and Professional gaming) and Geography (APAC, North America, Europe, MEA, and South America).
The gaming market share growth by the casual gaming segment will be significant for revenue generation. The market for casual gaming is growing with the increasing adoption of mobile gaming. Most casual gamers prefer mobile devices over PCs and consoles because of easy access to the games. In addition, casual gamers play games online on their mobile devices, as it is easy for them to play games of their choice from anywhere at any time. Technavio report provides an accurate prediction of the contribution of all the segments to the growth of the gaming market size.