Online Action Games Market - Growth Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Online Action Games Market - Growth Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The online action games market is anticipated to grow at a CAGR of 8.94% over the forecast period. The growing use of smartphones and the internet is one of the primary aspects that fosters the growth of the online action games market. In recent times, online action games have become a key practice for young people to pass their leisure time, and hence a crucial factor that accelerates the market growth.

• Technological developments, such as virtual reality (VR), and ongoing innovations in hardware and software to improve the real-time rendering of visuals and graphics are anticipated to fuel market growth throughout the projected period. Moreover, the market is expected to grow due to the widespread use of smartphones, rising internet penetration, and the accessibility of online games through various platforms.
• The growing trend of professional gaming, the surge in internet penetration worldwide, and the rise of MMORPG and RPG games and free-to-play games in recent decades highly augment the overall demand for the online action games market.
• According to ESA's new data, the US gaming population was more than 227 million in 2021, who spend, on average, 13 hours playing each week. According to statistics, 67% of adults and about 76% of Americans under 18 play video games. Even 7% of those over 65 enjoy playing video games. In United States, video game players are generally 31 years old. Furthermore, according to globalxetfs, 83 % of video game sales occur online.
• The surge in the number, especially children becoming avid video game players, frequently results in addiction. It interferes with their academic progress and increases social anxiety. These factors discourage parents from getting kids gaming systems. In April 2021, a reputable addiction recovery organization called "The Recovery Village" reported that over 2 billion individuals played video games worldwide, with 1-10% of those suffering from obsessive addiction disorders. Video game addiction can also lead to mental health problems, which makes parents reluctant to buy them for their children. This will probably hinder the expansion of the market.
• The COVID-19 pandemic increased the overall involvement of gamers, which is anticipated to have a beneficial effect on the online action games market. Online gaming is becoming increasingly popular as a kind of escape, especially in the countries like United States and United Kingdom, where many workers are furloughed but still paid and have nowhere else to spend their money. With limits put in place in America, Verizon claims that overall internet gaming traffic surged by 75% during the pandemic. Average daily user engagement on the role-playing game "Destiny 2" went up by 10% worldwide and up by 20% in regions hit the hardest by the coronavirus, according to video game producer Bungie.

With the use of highly enriched gaming technology, game manufacturers can successfully maintain gamers' interest in role-playing games and persuade them to stake more real money to get advantages or "boosters" in their games. This tactic helped MMORPG game publishers and developers increase sales by keeping existing players and luring new ones. According to the Enterprise Software Association, nearly 50% of gamers engage in microtransactions.

The overall demand for MMORPG games increased due to the rising of millennials' online gaming addictions and the rise in per capita income, especially in developing economies. According to mmobyte, Lost Ark is the most played MMORPG, as of February and March 2022.

The demand for mobile MMORPG gaming is greatly fueled by the increase in internet usage worldwide. In recent years, both emerging and established economies, including those in the Asia-Pacific region, saw a sharp increase in the number of mobile users with internet access. This is mainly because Chinese consumer electronics companies are expanding internationally and providing cost-effective smartphones, tablets, and gaming consoles. According to data provided by GlobalWebIndex, there are already more than 1 billion people very interested in streaming games on a monthly basis.

According to NewZoo, PC continues to be the most widely used platform for game developers. Sony continues to outperform Microsoft in being the chosen platform by game developers, with 25% choosing the PS4 over 23% choosing the Xbox One. Mobile gaming is also a popular platform for users, with 48% of gamers continuously using their smartphones to play games.

In the gaming sector, Asia-Pacific is predicted to hold the most significant market share, with China, Japan, and South Korea possessing significant growth potential. One of Asia's most significant economies, China, uses technology significantly. Rising exports and continued innovations in new games and gaming systems are the key drivers of the Asia–Pacific market.

Asia plays a significant role in the volume of gamers. An August 2021 survey by DFC Intelligence discovered that of the 3.2 billion gamers worldwide, 1.48 billion were in Asia, representing around 45% of gamers, and around 22% (or 715 million) of players were in Europe.

The surge in the number of online gamers and the popularity of online gaming tournaments are the key market trends in the Asia-Pacific region. Moreover, market participants in the Asia-Pacific region are launching a wide range of platforms that enable gamers to access AAA games. For instance, Tencent Holdings Limited and NVIDIA Corporation launched START, a new cloud gaming service, in December 2021 to enable gamers to access AAA games on low-end devices.

China's rise as a significant gaming hub led the Asia-Pacific market to position itself to dominate the global online action games market. The growth and advancement of the regional market are primarily driven by China's unrelenting rise in smartphone adoption. With aggressive inorganic development tactics like the acquisition of Riot Games and Supercell Oy, Tencent Holdings, which was limited to China, became a leading participant in the global video game business. Additionally, South Korea is anticipated to make a substantial contribution to the regional market expansion due to the growing popularity of e-sports and massively multiplayer online games.

The market for online action games is highly fragmented due to the existence of fierce competition among market participants and the rising popularity of mobile applications worldwide. The competition is heightened by the market's major participants, including Sony Corporation, Microsoft, and Nintendo, who constantly innovate and introduce new game systems.

• In January 2022, Microsoft Corp. declared its plans to buy Activision Blizzard Inc., a pioneer in game development and interactive entertainment content publisher. This acquisition will hasten the growth of Microsoft's gaming business across mobile, PC, console, and cloud platforms. After Tencent and Sony, Microsoft will rank third in the world for gaming revenue. Famous franchises from Activision, Blizzard, and King studios, including "Warcraft," "Diablo," "Overwatch," "Call of Duty," and "Candy Crush," as well as international eSports operations through major league gaming, are included in the potential acquisition.
• In March 2022, Sony Interactive Entertainment LLC declared agreeing to buy Haven Entertainment Studios Inc., a Montreal-based development studio. Haven Studios is primarily led by a premier team of game developers with over a decade of experience, working together on some of the industry's most well-known games and franchises.

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