Video Game Industry Revenue & Market Share (Jun 2023)

Gaming industry revenue: The gaming industry revenue is expected to reach $221.4 billion in 2023 and $583.69 billion in 2030. While the global video game market is expected to grow further, attaining 3.8 billion players with a total market size of $304.64 billion in 2027. The user penetration is expected to be 32.8% in 2023 and 35.6% by 2027. 

The average revenue per user: The video games segment is expected to have an $88 average revenue per user (ARPU) in 2023. There is a forecasted total of 3.26 billion gamers worldwide this year. 

Mobile gaming revenue: Mobile gaming is the largest segment, with a $172.10 billion market volume in 2023. The United States is estimated to dominate the gaming market worldwide with $56.84 billion in global revenue. US and China have been competing for this first spot for how many years.

The gaming industry generates revenue from two primary sources: (a) consoles, controllers, processors, and other accessories, and (b) software, which is the games themselves.

The data above shows that there will be an estimated 3.26 billion active video gamers globally in 2023. The number of players worldwide has been and is expected to increase steadily from 2017 to 2027, except for a slight decline in 2022. The number of players is projected to reach 3.8 billion by 2027, an increase of 5 million new users from 2023.

With a compound annual growth rate (CAGR) of 12.9%, the gaming industry is expected to generate $249.32 billion in 2023 and up to $583.69 billion in 2030.

Individuals’ growing preference for online gaming is responsible for the popularity of multiplayer games, Free2Play (F2P), and massively multiplayer online games (MMO), which are expected to continue throughout the forecast period. As a result, game developers are concentrating on enhancing hardware efficiency and compatibility.

Is the gaming industry growing? Yes! The factors that affect this are the increasing penetration of internet services and the widespread availability and accessibility of games.

Game developers in emerging economies are constantly working to improve the gaming experience by releasing and rewriting codes for various consoles such as Windows PC, PlayStation, and Xbox, which are then integrated into a standalone product offered to gamers via a cloud platform.

The data table shows the companies that generate the most revenue in the third quarter of 2022.

Tencent Holdings is the largest video game company today, with an $8.29 billion revenue in Q3 2022. Based in Shenzhen, this Chinese company generated a $32.2 billion revenue in 2021, showing a growth of 9.9% YoY. The online gaming segment accounted for roughly one-third of its revenue. This growth was led by popular games such as Fortnite, Honor of Kings, Clash of Clans, League of Legends, and PUBG.

Mobile devices generate the most revenue in the gaming industry, totaling $103.5 billion worldwide this year. The console device trails behind with $53 billion, while the PC came last with a revenue of $40.4 billion.

The US is expected to be the largest gaming market in the world in 2023, with a revenue of $56.84 billion. China comes second, expected to generate around $50.78 billion in revenue for 2023. China, however, has the largest player population than any other country, totaling up to 742.19 million players in 2022, compared to America’s 197.16 million players that same year.

The United States is projected to be the largest video game market, with an expected revenue of $56.84 billion this year. When the pandemic hit, it drove non-gamers to play, and existing gamers paid more attention and money to gaming activities in 2021, generating over $178 billion in gaming industry value.

This year, China is expected to come in second in the global video game market, with $50.78 billion in revenue. China holds the largest player population at 742.19 million players. The mobile games segment accounts for more than 80% of the country’s gaming revenue at $41.24 billion, making it the driving force of the growth of the market.

Japan is expected to be in the third largest market, following China in the video game market with $42.10 billion in revenue. It is also projected to grow at a 5.64% compound annual growth rate (CAGR) from 2023 to 2027, generating a market volume of $52.43 billion by 2027. Japan had around 78.1 million players in 2022.

South Korea is expected to be the fourth-largest video game market, with $13.37 billion in revenue. The video games revenue is forecast to present a 6.56% compound annual growth rate (CAGR) from 2023 to 2027, so the market will be worth $17.24 billion by 2027. South Korea had around 33.8 million players in 2022.

The United Kingdom will be the fifth-largest video game market in the world, with $6.41 billion in revenue for 2023. Mobile Gaming is the largest segment for the year, with a market volume of $3.24 billion.

Germany will take the sixth spot as the biggest video game market in the world, projected to reach $5.14 billion in revenue in 2023. The user penetration is expected to be 39.4% in 2023, rising to 42.7% by 2027.

France is projected to reach $3.58 billion in revenue this year. The growth is expected to accelerate at a 6.05% CAGR from 2023 to 2027, resulting in a market volume of $4.53 billion by 2027.

This year, Canada is expected to generate $3.53 billion in revenue in 2023. The video games segment is expected to generate $272.30 average revenue per user (ARPU) in the same year. Canada had 21.91 million gamers in 2022.

The top three sub-regions in terms of video game market revenue are North America, the Far East, and Western Europe.

The Asia-Pacific region is anticipated to be the top gaming market, generating a 49% share of the global gaming revenue, with East Asian countries like China, Japan, and South Korea contributing the largest. The Asia Pacific region is 19% larger than the share of the Americas, which takes 30% of the revenue, and is led by the US and Canada in terms of revenue. The global gaming market revenue is projected to be around $221.4 billion in 2023.