Gaming Console Market Size, Share, COVID-19 Impact & Industry Analysis, By Type (Home Consoles and Handheld Console (Portable and Non-Portable)), By End-use (Residential and Commercial), By Applications (Gaming and Non-Gaming), and Region Forecast, 2020-2027

The global Gaming Console Market size stood at USD 34.27 billion in 2019 and is projected to reach USD 51.15 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period. Global Market growth is driven by the rising demand for 3D video gaming based on Augmented Reality (AR)/ Virtual Reality (VR) capabilities and an increasing number of e-sport tournaments across the world.

Further, the adoption of gaming consoles is expected to grow with advancement in core wireless connectivity. The evolution of smart games and applications based on virtual assistant services is anticipated to drive the market in the upcoming future. As a part of a strategy, major players are investing in the development and launch of premium and high-performance game consoles. For instance, in January 2020, Sony Corporation announced the launch of PlayStation 5 in the coming 2020. The launch will help the company to strengthen its customer base.

MARKET TRENDS

Evolution and Adoption of Visual Display Resolutions such as 4K and 8K in Consoles

The majority of companies operating in the market are shifting from standard-definition television (SDTV) and high-definition television (HDTV) to advanced ultra-high-definition (UHDTV), and full-high-definition television (FHDTV). Ultra-high-definition resolution includes 4K, DCI 4K, and 8K display resolutions. Key players in this market are developing gaming console enabled with UHDTV and FHDTV display resolution capabilities. For instance, in 2018, Microsoft corporation launched a game console, “Project Scorpio.” This gaming console is based on full 4K and VR. 

Also, the launch of the various video game console accessories, such as 4K TVs, 3D audio headphones, keyboard, and others, has been beneficial to the market growth of gaming console. These accessories offer enhanced gaming experience to users. Further, the adoption of other technologies, including haptic vibration, Blu-ray, and wireless connectivity technologies, will contribute to the market revenue during the forecast period.

MARKET DRIVER

Rising Demand for Wireless and 3D Gaming Console with 4K Resolutions Capabilities and Increasing Investment to Aid Growth of the Market

The rising demand for game consoles based on advanced wireless technologies, including Bluetooth 5.0, Wi-Fi, and others are expected to drive the market growth. Key players, including Sony Corporation and others, are offerings game consoles based on wireless technologies to deliver an enriched experience to their users. Also, these advanced consoles would help users to enhance the overall game-play experience and eliminate the use of wired accessories.

Moreover, the popularity of 3D gaming is increasing exponentially around the globe. 3D gaming console support stereoscopic graphics gameplays on an integrated high-resolution display. Also, 3D gaming provides features such as precise 3-D localization, which helps to improves the users' experience and deliver realism to the gameplay. The rising demand for gaming consoles based on 3D architecture is also expected to drive the overall market growth of gaming console during the forecast period. 

Further, various drivers, such as rising “massively multiplayer online game options” (MMOGs) and rising global investment in video games, are expected to boost the Gaming Console Market growth. For instance, according to UK Interactive Entertainment Association (Ukie), In U.K., investment in development for 3D video games reached a value of USD 2.30 billion during 2015-2017. Such advancement of 3D games is expected to drive the growth of the market during the forecast period.

Key players such as Microsoft Corporation and Sony Corporation have launched 3D game console only compatible with 3D games with 4K resolutions. In addition,  

MARKET RESTRAINT

Lack of Skilled Professionals and Increasing Piracy Rate

Gaming console manufacturers often face complications while designing consoles owing to the lack of professional developers and tester along with the infrastructure. This might be a key restraining factor for this market. Further, due to fragile operating structure, and high piracy rates, unauthorized users are gaining access to a wide range of premium games for free or at a moderately low cost. The increasing piracy rate for online and offline games has impacted overall sales of gaming consoles and related products.

SEGMENTATION

By Type Analysis

The Rising Number of Online Gamers among Countries such as China, the U.S., and India to Drive the Market

Based on type, the gaming console market is segmented into home consoles and handheld consoles. Among these, the home consoles segment is expected to hold a maximum share in terms of revenue. Also, the home consoles segment is expected to grow with the highest CAGR during the forecast period. This is primarily owing to the rising adoption of cloud technology and the growing number of online gamers among countries such as China, India, the U.S., and others.

Further, the handheld segment is expected to rise with a steady CAGR during the forecast period, owing to the limited players operating in this market. Key players such as Nintendo Co., Ltd., and others are focusing on enhancing their brand penetration by launching advance and innovative consoles worldwide. For instance, in 2017, Nintendo Co., Ltd. Launched “Nintendo Switch.” The company sold around 15 million units and 17 million units of consoles during 2017 and 2018, respectively.

By End-use Analysis

The Rising Popularity of Gaming Console Cabinet and Accessories with Enhanced Storage Capability to Drive the Market

Based on end-use, the market is divided into residential and commercial segments. The residential sector is anticipated to develop with a substantial CAGR during the upcoming period. The growth in the market is driven owing to the rising demand for gaming accessories, including gaming mouse, a 3D gaming headset with integrated mic, game-enabled televisions, and others. With the launch of smart television with advance display resolutions such as 4k and 8K, the market of home consoles for the residential segment is also projected to experience healthy growth. 

As they offer enriched gaming experience than other display types. The adoption of VR and AR technologies is further anticipated to augment the gaming experience of home consoles.

Additionally, the commercial segment is expected to rise with a stable CAGR during the forecast period. Cloud gaming is one of the primary drivers for the growth of the commercials segment. Cloud services help to store massive amounts of gaming data and secure them with improved security methods. Moreover, key players in the market are integrating cloud services into gaming consoles to offer “game-as-a-service” model, by providing on-demand game content and access to the users.

By Application Analysis

Increasing Popularity of Content Integrated Consoles to Aid Market Growth

Based on applications, the gaming console market is segmented into gaming and non-gaming applications. Among these, the non-gaming segment is estimated to grow at a significant CAGR, owing to the rising demand for consoles integrated with extensive content applications including YouTube, Netflix, Amazon Prime Video, and others. Further, the gaming segment is expected to rise with the highest CAGR during the forecast period. Advancement in the controller-free gaming console is expected to create new opportunities for manufacturers in this market.

Key players in this market are focusing on launching gaming consoles based on both gaming and non-gaming applications. For instance, in 2012, Nintendo Co Ltd. launched Nintendo Wii U. Wii U helps users to control the gaming device as a handheld machine and further utilize to browse internet and applications, draw sketches, and post images on social media websites. Manufacturers are developing multi-utility gaming console, and this rising trend is projected to drive market growth during the forecast period.

REGIONAL ANALYSIS

Under the scope of the study, the regional segment is divided into five regions, including North America, Asia Pacific, Europe, Middle East & Africa, and Latin America.

Among all the regions, Asia Pacific is expected to lead the gaming console market share during the forecast period. The growth in the Asia Pacific region is owing to the existence of key players such as Sony Corporation, Nintendo Co. Ltd, and others in the region. Other key factors owing to this growth are the number of active gamers present in countries such as China, South Korea, Japan, India, and others, which is almost five times as compared to North America. Also, China is expected to hold a large market share during the forecast period. 

The market growth in this country is owing to rising number of e-sport gaming tournaments including FIFA 20 (PS4) Open Cup, MK11 (PS4) Open Cup, FIFA 20 (PS4) 1on1 Major Cup, Tekken 7 (PS4) 1on1 Open Cup, ESL Malaysia Championship - Call of Duty® Mobile Qualifier 2, StarCraft 2 Open Cup and others. Furthermore, key players in the region are focused on seizing opportunities to integrate console gaming with various upcoming technologies, including cloud-based streaming, 5G network, and adoption of Blockchain to sustain gamer’s trust and reduce piracy issues.

Europe is expected to grow with a notable CAGR during the forecast period. In Europe, the gaming console market growth is considerably driven by increasing investments by consumers in countries, namely the U.K., Germany, France, Spain, Italy, and others. According to UK Interactive Entertainment (Ukie), in the U.K., customer investment in games was valued at around USD 7.40 Bn in 2018, and USD 6.60 Bn in 2017. The growth in the U.K. is owing to the presence of several active gaming companies. According to Ukie, there are more than 2,261 active game companies in the U.K. Also, cities like London, Manchester, Brighton, and Liverpool have around 614, 96, 73 and 37 active gaming companies respectively. 

Furthermore, the government and digital gaming organizers of Europe are more focused on initiating various e-sport tournaments across the region. Some of the key e-sport tournaments include GDC 2019, Casual Connect Europe, London Games Festival, E3 2019, Gamescom 2019 and others.

While North America is projected to grow with a remarkable CAGR over the forecast period. The growth in the region is attributable to the rising demand for game consoles based on technologies including 3D architecture, cloud service, AR/VR platform, motion-sensing techniques, high display resolutions, and others. To cater to the rising demand for gaming console, companies in this region are focusing on developing and launching advanced gaming consoles. These advanced gaming console offer gaming and non-gaming applications. For instance, in 2018, in the U.S., Sony corporation caters around 70,000 units of gaming consoles based on cloud streaming and 3D capabilities. 

Furthermore, market growth in Latin America and the Middle East and Africa is expected to grow with a stable CAGR during the forecast period. This growth is mainly owing to spending done by the local government and private organizations in countries, including Mexico, Columbia and Brazil, to adopt the latest technologies such as AI and others. Several gaming communities and universities are promoting and organizing various e-sport tournaments in Mexico. 

In 2018, the Mexican E-Sports Federation received the recognition of Conade (Mexico's National Commission for Physical Culture and Sport). In Brazil, there are more than 21.2 million active gamers. Gaming Console Market sales are expected to rise with the rising active gamers.

KEY INDUSTRY PLAYERS

Focus of Key Players Towards Innovative Game Consoles to Intensify Competition

Sony Corporation design, manufacture, and sale electronic products including, electronic instruments, devices, game consoles, and software. The company caters to electronic products to professionals and industrial markets. Major operating segments of the company include game and network services, semiconductors, home entertainment and sound, music, pictures, mobile communications, imaging products and solutions, financial services, and others. 

According to the Sony Corporation’s annual report 2018, the company generated around 27% of the revenue from its game and network services segment. The company’s game and network services segment include product such as PlayStation4 (PS4), PlayStation3 (PS3), and PlayStationVita (PS Vita) related software.

May 2019 - Sony Corporation and Microsoft Corporation completed a strategic partnership to enhance gamers' experiences in direct-to-consumer entertainment platforms, cloud, and AI solutions.

LIST OF KEY COMPANIES PROFILED :

• Nintendo Co. Ltd., (Japan)


• Sony Corporation (Sony Computers Entertainment Inc.) (Japan)


• Microsoft Corporation (United States)

KEY INDUSTRY DEVELOPMENTS:

• January 2019 – Sony Interactive Entertainment (SIE) acquired Audiokinetic, Inc., a provider of audio solutions for the gaming and media industries. This acquisition helped SIE to acquire Audiokinetic’s audio engineering technical business unit. This acquisition added substantial value to the PlayStation audio ecosystem.

FUTURE OUTLOOK

The potential market for gaming is moving towards building a perfect trail that helps to merge gaming consoles and humans proficiently with the help of artificial intelligence technology. Further, key players in the market are focused on developing gaming console based on cloud service and blockchain technology. Also, rising internet penetration, home automation, and adoption of upcoming 5G is expected to create opportunities for the market growth during the forecast period.

REPORT COVERAGE

The gaming console market report offers qualitative and quantitative insights on the gaming industry and detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of gaming consoles, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

Report Scope and Segmentation