Market Size of United States Gaming Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 57.91 Billion |
Market Size (2029) | USD 90.79 Billion |
CAGR (2024 - 2029) | 9.41 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
US Gaming Market Analysis
The United States Gaming Market size is estimated at USD 57.91 billion in 2024, and is expected to reach USD 90.79 billion by 2029, growing at a CAGR of 9.41% during the forecast period (2024-2029).
The increased adoption of video streaming apps on mobile devices and televisions to watch movies, TV shows, and live events on-demand, has driven the demand for the gaming industry in the country. Moreover, many consumers want to play the latest games without requiring a new PC or a console. This has aided the development of newer formats as well.
- According to a study by the ESA, last year, more than 227 million players in the United States region played video games. In total, 80% of the players are over 18 years old. Furthermore, 76% of American kids under 18 years are players. In addition, 74% of American households have at least one video game player. Also, during the pandemic, 71% of parents agree that video games have been a much-needed break for their children. Also, 66% of parents agree that video games made the transition to distance learning more accessible.
- Further, 57% of the players used smartphones, 46% consoles, and 42% personal computers for playing video games. Also, 29% spent 1 to 3 hours per week, 77% spent more than 3 hours a week, and 51% spent more than 7+ hours playing video games in the country last year.
- Some key vendors, like Microsoft, which generates the largest revenue share in the United States, are focusing on leveraging the growing video game consumption in the country by launching new products. In November 2020, Microsoft launched the Xbox Series X and the Xbox Series S with live and virtual global activations. The games developed for the new consoles showcase visuals at 120 FPS. The consoles are equipped with 12 teraflops of processing power with AMD Zen 2 and RDNA 2 architectures.
- In addition, some of the prominent foreign players are expanding their presence in the United States to leverage the growth in the gaming market. For instance, the Chinese gaming company, Tencent Holdings, launched a new studio in California last year. The company built the new studio to focus on publishing AAA titles. The company generates half of its gaming revenues from overseas.
- Some of the major US-based video game companies are focusing on mobile gaming to improve their positions in the market. Last February, Electronic Arts Inc. acquired the US-based developer of mobile games, Glu Mobile, for USD 2.1 billion. The acquisition doubled Electronic Arts' mobile business.
- Also, due to the enforced lockdown during the COVID-19 pandemic, people have been staying at home and turning toward gaming platforms to pass their time. These platforms have been attracting more than hundreds and thousands of new visitors in online traffic.
- Video gaming trends experienced a significant surge in players and revenue last year. Organizations such as Microsoft, Nintendo, Twitch, and Activision, have reached new heights in player investment. Further, last year, Microsoft reported that subscribers to Xbox Game Pass, a Netflix-like subscription service, topped 10 million. Among those subscribers, Microsoft reported a 130-percent increase in multiplayer engagement across March and April.
US Gaming Industry Segmentation
As per the scope of the report, gaming is defined as playing electronic games through a variety of means, such as computers, mobile phones, consoles, or other mediums altogether. There is an increasing prevalence of high-speed internet connections, especially in emerging economies, which has made online gaming practical for more people in recent years.
The gaming market estimates indicate the revenues accrued from physical(boxed games) and digital games(browsers, websites, and social networks), in-app spending(microtransactions), and subscription services (ad-based revenues are not included). The study is structured to provide an in-depth understanding of different modes of gaming, such as consoles, mobile games, and browser PC/downloaded games.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
Types | |
Mobile Gaming (Market Overview, Key Monetization and Promotion Methods etc.) | |
Console Gaming | |
PC Browser/Downloaded |
United States Gaming Market Size Summary
The United States gaming market is experiencing significant growth, driven by the increasing adoption of mobile gaming and advancements in technology such as AR, VR, and 5G. The market is characterized by a diverse range of players, with a substantial portion of the population engaging in video gaming across various platforms, including smartphones, consoles, and personal computers. The COVID-19 pandemic has further accelerated this trend, as more individuals turned to gaming for entertainment while staying at home. Key industry players, including Microsoft, Tencent, and Electronic Arts, are actively expanding their presence and product offerings to capitalize on this growth. The introduction of new consoles and the rise of cloud gaming are also contributing to the market's expansion, providing gamers with more accessible and immersive experiences.
Mobile gaming has emerged as the most popular form of gaming in the United States, surpassing both console and PC gaming. This shift is largely attributed to the convenience and technological advancements that mobile gaming offers. The development of cloud gaming services, which allow users to stream games on handheld devices without the need for regular hardware upgrades, is expected to further drive market growth. The proliferation of 5G networks and the availability of unlimited data plans are crucial factors in the success of cloud gaming, as they enhance the gaming experience by reducing latency and improving connectivity. The market is fragmented, with major players employing strategies such as mergers, acquisitions, and partnerships to strengthen their positions and expand their reach in this rapidly evolving industry.
United States Gaming Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Industry Ecosystem Analysis
-
1.3 Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitutes
-
1.3.5 Intensity of Competitive Rivalry
-
-
1.4 Impact of COVID-19 on United States Gaming Market
-
1.5 Gaming Base Indicator Analysis
-
1.5.1 Current State of Internet Penetration in United States
-
1.5.2 Smartphone and Console Penetration In United States
-
1.5.3 Mobile Gamers Population By Age and Gender
-
1.5.4 United States Mobile Gamer Demographics And Usage Statistics
-
-
1.6 United States Game publishers vs. International
-
1.7 Top 10 Games And their Publishers?
-
1.8 Social media usage in the United States (Overview, Leading Platforms, Usage trends, Impact of COVID-19)
-
1.9 United States Game Developer Statistics (industry overview, Demographics, Job market statistics etc.)
-
-
2. MARKET SEGMENTATION
-
2.1 Types
-
2.1.1 Mobile Gaming (Market Overview, Key Monetization and Promotion Methods etc.)
-
2.1.2 Console Gaming
-
2.1.3 PC Browser/Downloaded
-
-
United States Gaming Market Size FAQs
How big is the United States Gaming Market?
The United States Gaming Market size is expected to reach USD 57.91 billion in 2024 and grow at a CAGR of 9.41% to reach USD 90.79 billion by 2029.
What is the current United States Gaming Market size?
In 2024, the United States Gaming Market size is expected to reach USD 57.91 billion.