Subscription-Based Gaming Market to Reach USD 14.71 Billion by 2027
The subscription-based gaming market, valued at USD 7.82 billion in 2021, is expected to experience significant growth, with a compound annual growth rate (CAGR) of 10.68% from 2022 to 2027. This growth can be attributed to the increasing popularity of online multiplayer games, advancements in cloud gaming, and the emergence of 5G networks.
Continuous technological advancements in the gaming industry, particularly in cloud gaming and 5G networks, are driving the growth of the subscription-based gaming market. The release of 5G and unlimited data plans will further contribute to the success of subscription-based cloud gaming. According to Ericsson, the number of 5G mobile subscriptions in the Asia-Pacific region is expected to reach 1,545 million by 2025. Companies like Microsoft are also launching cloud gaming services, such as Xbox Cloud Gaming, which will be integrated with TV and streaming sticks.
The increasing number of service providers operating in the market is creating a competitive space where vendors are forced to offer benefits to consumers at a loss, which may not be sustainable in the long term. This is evident in the case of subscription-based gaming services, where companies need to constantly innovate and invest in new technologies to stay competitive.
With the COVID-19 pandemic, the market has witnessed positive growth, driven by the increasing popularity of online multiplayer games. According to a Broadcast Audience Research Council India (BARC) report, the average time spent by gaming users per week in India increased by 44% during the pandemic. Mobile gaming has also become a significant trend in the market, with advancements in AR and VR technology making it more immersive and interactive.
Key Takeaways:
- The subscription-based gaming market is expected to reach USD 14.71 billion by 2027, growing at a CAGR of 10.68% from 2022 to 2027.
- Continuous technological advancements in cloud gaming and 5G networks are driving the growth of the subscription-based gaming market.
- The release of 5G and unlimited data plans will further contribute to the success of subscription-based cloud gaming.
- Companies like Microsoft are launching cloud gaming services, such as Xbox Cloud Gaming, which will be integrated with TV and streaming sticks.
- The increasing number of service providers operating in the market is creating a competitive space where vendors are forced to offer benefits to consumers at a loss, which may not be sustainable in the long term.
- Mobile gaming has become a significant trend in the market, with advancements in AR and VR technology making it more immersive and interactive.
- The Asia Pacific region is expected to account for the highest market growth, driven by the strong consumer base and increasing technological usage in countries like China and India.
Statistics:
- The subscription-based gaming market was valued at USD 7.82 billion in 2021.
- The market is expected to reach USD 14.71 billion by 2027, growing at a CAGR of 10.68% from 2022 to 2027.
- The number of 5G mobile subscriptions in the Asia-Pacific region is expected to reach 1,545 million by 2025.
- The average time spent by gaming users per week in India increased by 44% during the COVID-19 pandemic.
- Mobile gaming has surpassed console and PC gaming as the most popular form of gaming worldwide.
Sources:
- ResearchAndMarkets.com
- Ericsson
- Broadcast Audience Research Council India (BARC)
- Microsoft
- Apple
- Nintendo
- EA
- Humble Bundle Inc.
- NVIDIA
- Ubisoft
- Amazon
- Tencent Holdings Ltd
- Epic games Inc.
- Prime Gaming (Amazon Inc.)
- Xbox (Game Pass) (Microsoft Corporation)
- PlayStation Now (Sony Corporation)
- Apple Arcade (Apple Inc.)
- Nintendo Switch Online (Nintendo Co. Ltd)
- EA Play (Electronic Arts Inc.)
- Google Play Pass (Google LLC)
- GeForce Now (NVIDIA)
- Uplay Pass (Ubisoft)
- Amazon Luna (Amazon Inc.)