Gaming Console Market - Forecasts from 2024 to 2029

Gaming Console Market - Forecasts from 2024 to 2029

The global gaming console market is expected to reach a market size of US$84.432 billion in 2029 from US$53.817 billion in 2024, thereby growing at a CAGR of 9.43%.

The gaming console is a video game that supports stereoscopic games played on an integrated display. The console through the usage of three-dimensional technology creates an in-depth illusion of characters which offers a better feeling of surface materials in the gaming process. The booming advancement in gaming technology coupled with the ongoing trend of promoting 3D and virtual reality in the gaming sector is anticipated to drive market expansion in the coming years.

Moreover, the booming demand for in-house gaming consoles coupled with various implementation and organizing of gaming tournaments has led to an upward market trajectory. Major gaming nations namely the United, States, China, and Japan among others are at the forefront of driving innovations in the gaming sector which has further paved the way for future market growth.

Market Drivers

Technological advancement is boosting the console gaming market growth.

The global console gaming market growth is also attributed to the advancement in technology, as many gaming companies such as Nintendo and Sony are showing active participation in new console launches and innovations to provide more advanced gaming experiences to their customers. Innovations such as advanced audio-visual systems, 3D effects, wireless systems, and many more are creating overall gaming console market demand globally as these new console gaming fit the consumer's requirements better than the previous ones.

These games allow consumers to browse the internet, download videos and audio, listen to music, and watch videos or any content simultaneously while playing the games. Due to these features, the demand for console gaming is rising from the fast-flowing generation. Similarly, an increase in disposable income among the population also raises the demand for console gaming.

Market Challenges
Complexities in manufacturing and a lack of professional experience have posed a challenge to market expansion.

Though gaming console providers emphasize improving the overall gaming experience through their offerings, however, in the process of providing such an experience the companies have to face complications relating to design, console architecture, and prototype development. Moreover, other factors such as fragile operating structure, growing piracy and unauthorised user access premium games are anticipated to constrain the growth of the console gaming market. Additionally, smartphone adoption and growing 5G penetration have bolstered mobile gaming applications which has created a certain shift towards the console gaming system.
Home consoles are expected to account for a significant market share.

Owing to the increasing preference for in-home gaming and the up-gradation of gaming consoles by the key market players, home consoles are expected to dominate the market. The popularity of home consoles is rising due to features such as cloud support, online multiplayer gaming, and many deals associated with this sector are some of the other factors to boost the home gaming console market. Market key players also regularly upgrade their services in the gaming experience; this led to growth in their sales. Additionally, the accessories availability such as 4K TVs has also positively impacted the segment growth.

The gaming experience is also enriched by the advent of virtual and augmented reality which has led to product upgrades, and developments of home consoles which in comparison to handheld gaming has provided consumers with varied options to meet their gaming requirements. At the same time, several budding sportspeople consider e-sports as a career option also aid in the console gaming market. Other factors such as high-speed internet penetration, have further propelled the gaming console market demand which is anticipated to drive the overall expansion.

Asia-Pacific is projected to account for a considerable market share.

Asia Pacific is anticipated to hold a considerable market share as the gaming industry is among the major revenue-generating sectors in countries like Japan, China, and South Korea. The increase in advancements in the companies such as Sony, Nintendo, and SEGA Corporation which are witnessing a significant increase in their gaming console sales has further provided a positive scope for the market growth. For instance, in December 2023, Sony Interactive Entertainment announced the company’s PS5 (PlayStation 5) gaming console surpassed the 50 million mark since its launch in November 2020.

Key developments
In November 2023: Sony Interactive Entertainment formed a strategic partnership with NCSOFT which aimed to utilize the company's technological expertise in the field of entertainment inclusive of gaming, The collaboration further enabled Sony to expand its PlayStation’s reach to a wider audience and enhance its console portfolio.
In September 2023: Lenovo unveiled its first Windon gaming handling device “Lenovo Legion Go” which features micro-LED equipped Lenovo Legion Glasses & Lenovo Legion E510 7.1 RGB Gaming In-Ear Headphones. Running on Windows 11 the “Lenovo Legion Go” offers console-rivalling graphics.
In August 2023: Qualcomm launched its new “Snapdragon G series” handheld gaming portfolio consisting of three tiers i.e., Snapdragon G1, G2, and G3. The Snapdragon G1 is designed for powering fanless handheld gaming devices and provides lag-free battery life thereby enabling players to stream their favourite PC games and consoles.
In February 2023: NVIVDA Corporation and Microsoft Corporation formed a 1-year partnership for bringing Microsoft’s Xbox PC game to NVIDIA’s “GeForce Now” gaming service. The collaboration will enable gamers to stream Xbox PC titles through GeForce Now to macOS, PCs, and Chromebooks.

Segmentation:

By Console
Home Console
Handheld Consoles
Hybrid Console
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Others
Middle East and Africa
Israel
Saudi Arabia
Others
Asia Pacific
China
Japan
South Korea
India
Thailand
Taiwan
Indonesia
Others