The global digital gaming market is experiencing a boom as it is expected to expand at a CAGR of 15.7% and be worth USD 264.9 Bn by 2023. Digital technology has penetrated deeply to improve user experience and transform the gaming activity to be more interactive. Increase in mobile gaming, rapid technological advancements, the rise of e-sports’ popularity, adoption of Virtual Reality (VR) and Augmented Reality (AR) are collectively working to boost the global market for digital games.

The overall market has moved from brick and mortar stores to digital purchases, as game developers prefer digital distribution to physical distribution. Gaming has evolved from the 2D arcade and TV games and entered the domain of cloud gaming, AR and VR, e-Sports and Blockchain gaming. The growing global audience and the constant stream of talented videogame developers have encouraged investors and gaming companies to invest increasingly in these gaming domains.

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Global Digital Gaming Market (2018-2023)
March 2019 | 90-100 Pages | SKU: 201894

Opportunity areas for digital gaming

At present, the e-sports segment is attracting the largest audience. The younger generation of videogame players are used to blending the physical and digital world together, and e-sports is seen as a natural extension to traditional physical sports. E-sports just like traditional sports have opened up opportunities for gaming, and media and entertainment companies to earn more revenue.  With improvements in software and hardware, augmented and virtual reality significantly impacts digital gaming by enabling more immersive experiences. Instead of experiencing a game through a monitor, virtual reality enables users to step into three-dimensional worlds and interact with the digital environment. Games with augmented and virtual reality are a favourite among hard-core gamers.

Cloud gaming connects developers and gamers

Cloud gaming has established a healthy relationship between developers and gamers. Cloud-based video games are flooding the global market owing to the availability of cloud computing solutions, which enables quick creation, deployment, and monetization of their applications swiftly.  Cloud enables scalability that is, the ability to play high-end games on low-end machines. Cloud gaming allows access to games anytime and from any place. Consumers can rent games on demand, enjoy features such as migrating across client computers during game sessions, observing ongoing tournaments and sharing games with friends.

Cloud gaming allows developers to concentrate on a single platform, hence avoiding the need for regular upgrading of their software.  Developers are able to reduce the cost of porting and testing. Retailers are not able to siphon off profits and piracy is prevented as the gaming software can never be downloaded to the client’s computer. Cloud gaming provides a highly scalable and reliable infrastructure with high-memory server clusters aimed at providing an excellent gaming experience to the users, at minimal operational overheads for both game developers and providers.

In a world where new video games have bigger weekend openings than Hollywood blockbusters, digital gaming is surely a serious business. Single-player games are increasingly giving way to multi-player games. The social aspect of multi-player games makes them more engaging, fosters a sense of community, and enables new game genres such as team-based strategy games and battle royale games.