Global Video Game Market to Exceed $593B by 2031
A new report from Mordor Intelligence projects the global video game market will surpass $593 billion by 2031. The growth is expected to be driven by mobile gaming, AI in game development, and subscription services. The cloud gaming sub-sector is forecast to expand at a 26% compound annual growth rate.
- The global video game market's revenue for 2024 is estimated to be between $187.7 billion and $298.9 billion, with mobile gaming accounting for 54.86% of that revenue. - The growth in mobile gaming is significantly propelled by wider 5G network rollouts and advancements in smartphone hardware, such as more powerful processors and graphics capabilities, which enable more complex and graphically intensive gaming experiences. - In 2026, approximately 50% of game studios are utilizing AI in their production pipelines, with 97% of developers using AI-assisted tools for tasks like procedural content generation, creating realistic NPC behaviors, and accelerating asset creation. - Key players in the cloud gaming market include NVIDIA, Microsoft, and Sony, with NVIDIA Corporation holding a significant market share. The global cloud gaming market was valued at approximately $3.34 billion in 2024 and is projected to grow significantly. - New York City is fostering a growing game development scene through initiatives like the NYC Game Design Future Lab, an incubator in partnership with NYU Tandon that supports early-stage game companies with mentorship and resources. - Venture capital investment in AI-focused gaming startups is gaining momentum, with over $1.8 billion raised by 178 AI startups between 2020 and 2024. The majority of these were early-stage seed or Series A rounds. - The rise of AI game development engines like Nitrode and no-code platforms is lowering the barrier to entry for indie developers and small teams, enabling the creation of games without deep technical expertise in game mechanics. - The Asia-Pacific region, particularly China and India, is a major driver of market growth, holding a dominant share of the video games market in 2024. India is expected to be the fastest-growing regional market.
