Global Artificial Intelligence in Gaming Market Size, Share & Trends Analysis Report, by Component, by Application, By Genre, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Gaming Market Size, Share & Trends Analysis Report, by Component, by Application, By Genre, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Gaming Market was valued at US $ 4.2 Billion in 2023 and is expected to reach US $ 42.1 Billion by 2032 growing at a CAGR of 29.2% during the forecast period 2024 – 2032.

The term ""Artificial Intelligence in Gaming Market"" describes the international industry sector devoted to the creation, incorporation, and application of AI technology in the gaming environment. This industry includes the use of machine learning, artificial intelligence, and advanced analytics to improve several facets of gaming experiences. The use of AI for realistic graphics, dynamic storytelling, realistic character behaviours, and responsive environments are important elements. The market is for the application of AI to tailor gaming experiences according to the interests of specific players, increasing player loyalty and engagement. AI is also used in procedural content generation, which makes it possible to create a variety of dynamic in-game features, including characters, scenarios, and levels.

The growing demand from players looking for greater engagement and authenticity in their gaming interactions is driving the market for more realistic and immersive gaming experiences. The gaming industry is expanding as a result of this growing demand. Game creators are under pressure to incorporate cutting-edge technology like virtual reality (VR), augmented reality (AR), and complex graphics driven by artificial intelligence (AI) as players seek for more immersive forms of escape. In addition to visual components, dynamic storytelling, realistic character interactions, and responsive settings are all part of the pursuit of realism. This need drives ongoing innovation in gaming software and technology, resulting in the creation of better audio systems, more potent GPUs, and sophisticated AI algorithms that mimic realistic behaviour. In the end, the industry landscape is centred on providing more realistic and immersive gaming experiences in response to customer demand for gaming experiences that not only captivate visually but also encourage a sense of presence and emotional connection.

“Hardware segment, by component, to be dominating market from 2023 to 2030.”

Hardware leads the AI gaming landscape with 62.5% of the total, as it offers the necessary processing power to run complicated AI algorithms and manage intricate visuals rendering. For gaming experiences to be fluid and responsive, specialised hardware elements like CPUs and GPUs are essential, particularly in situations where real-time AI interactions are required. With a 25.46% CAGR, software is the fastest-growing market segment. This growth is attributed to ongoing algorithmic improvements and the use of machine learning methodologies. Procedural content creation and adaptive storytelling are two examples of the cutting-edge gaming experiences being created by AI-driven software solutions. The market for gaming software is experiencing a rapid increase due in part to the emergence of AI middleware, which provides developers with easily available tools for AI integration.

“Action games segment, by genre, to be dominating market from 2023 to 2030.”

Because action games are fast-paced and real-time, they require complex AI algorithms for dynamic player interactions and challenging adversary behaviour. This is why action games lead the AI in the gaming market with a 29.32% market share. Action games use AI to enhance the overall gaming experience with its dynamic storytelling, real-time decision-making, and immersive surroundings. Simulator games, with a 16.41% CAGR, are the genre in the AI gaming market that is expanding the fastest. Driven by an obsession with realism, artificial intelligence (AI) powers complex, lifelike settings in simulation games. AI improves the realism of simulations by modelling towns, companies, or particular activities. The usage of this genre in industry-specific training simulations, which provide users with chances for skill development and realistic experiences, is driving its expansion even further.

“Computer Vision segment, by application, to be dominating market from 2023 to 2030.”

With a 46.22% market share in the AI application industry, Computer Vision leads the field because of its broad applicability in a variety of industries, including manufacturing, healthcare, retail, and automotive. It is an essential technology for tasks like object recognition, picture classification, and video analysis because of its capacity to analyse and interpret visual input from the outside environment, including photos and videos. With numerous widely used and validated commercial applications, computer vision has reached a substantial level of maturity.

“Asia Pacific to be largest and fastest growing region in Artificial Intelligence in Gaming market.”

With a market share of 18.2%, the Asia-Pacific (APAC) region leads the world in artificial intelligence (AI) for gaming. This growth is attributed to a number of reasons that place APAC at the forefront of technological innovation. APAC is a thriving hub for the gaming industry, with a growing population of passionate gamers, especially in nations like China, Japan, and South Korea. The region's tendency towards technological adoption and advancement is in line with the incorporation of AI, which improves gameplay, graphics, and overall gaming experiences. AI is used in mobile gaming, which is a major industry in Asia, to give immersive and personalised content. Its popularity stems from significant government and corporate investments in AI technologies as well as the region's strong cultural ties to gaming.

Artificial Intelligence in Gaming Competitive Landscape

The competitive landscape of the Artificial Intelligence in Gaming market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Artificial Intelligence in Gaming technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Artificial Intelligence in Gaming market is highly competitive, with numerous companies vying for market share. Prominent companies in the Artificial Intelligence in Gaming Market include:

Alphabet (Google), Amazon, Bosch, Continental, Daimler, Apple, Baidu, Epic Games, Facebook Intel, Microsoft, Gaming, Huawei, Nvidia, PlayStation, Qualcomm, Unity Technologies, Ubisoft, Sony, Tencent, Valve, Activision Blizzard, Take-Two Interactive, Zynga, Electronic Arts, Improbable, Machine Zone, Next Games, Supercell, VoxelCloud, Playtika, Scopely, Game Insight, Plarium, Wargaming, Playrix

Recent developments:

Nvidia revealed the launch of Omniverse, a new AI-powered gaming platform, in August 2023. AI-powered games and simulations can be developed and implemented by developers using the Omniverse cloud-based platform.

Unity Technologies declared in July 2023 that Unity MARS, a new AI-powered game development platform, would be available. Unity MARS is a platform that lets developers use augmented reality and machine learning to create AI-powered games and simulations.

Unreal Engine 5, a new AI-powered game engine, was released in June 2023, according to an announcement made by Epic Games. Using AI technology, Unreal Engine 5 is a game engine that lets creators make incredibly realistic and immersive games.