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The gaming hardware market exhibits a dynamic landscape driven by various market dynamics that shape its trajectory. Technological advancements form a cornerstone of these dynamics, with constant innovations fueling the market's growth. Graphics processing units (GPUs), central processing units (CPUs), and other gaming hardware components undergo regular upgrades to meet the increasing demands of modern games. This perpetual evolution not only caters to the appetite for improved gaming experiences but also fosters a continuous cycle of product releases and updates, keeping the market in a state of flux.
Consumer preferences significantly influence the market dynamics of gaming hardware. The rise of esports and the increasing popularity of multiplayer online games have propelled the demand for high-performance peripherals. Gaming mice, keyboards, headsets, and other accessories are designed to provide a competitive edge, reflecting the evolving preferences of gamers. Additionally, the shift toward virtual reality (VR) and augmented reality (AR) gaming experiences introduces new dynamics, influencing the development of specialized hardware to enhance immersive gameplay.
Market competition is a driving force that shapes the gaming hardware industry. Key players such as NVIDIA, AMD, Intel, and various gaming peripheral manufacturers engage in fierce competition to capture market share. This competitive landscape fosters innovation, with companies vying to outdo each other in terms of performance, features, and pricing. Strategic collaborations, partnerships, and exclusive deals with game developers further intensify this competition, contributing to a vibrant and rapidly evolving market.
Economic factors play a pivotal role in the market dynamics of gaming hardware. Disposable income levels and overall economic stability impact consumer spending on gaming setups. During economic downturns, consumers may prioritize essential purchases over high-end gaming hardware, while prosperous periods see increased investments in premium gaming equipment. The affordability of gaming hardware also influences market accessibility, with entry-level and mid-range products catering to a wider audience and driving market growth.
The convergence of technology is a transformative dynamic in the gaming hardware market. Smartphones, tablets, and smart TVs with gaming capabilities have become prevalent, expanding the market beyond traditional PCs and consoles. This trend prompts gaming hardware manufacturers to develop cross-compatible peripherals that can seamlessly integrate with various platforms. The blurring of lines between gaming on different devices introduces new challenges and opportunities, shaping the market dynamics to accommodate this shift in consumer behavior.
Environmental considerations are emerging as a crucial dynamic in the gaming hardware market. With a growing awareness of electronic waste and sustainability issues, consumers are increasingly inclined toward eco-friendly and energy-efficient gaming hardware options. Manufacturers are responding by adopting sustainable practices in production and designing products with recyclability and longevity in mind. This environmental consciousness introduces a new dimension to the market, influencing both consumer choices and manufacturers' strategies.
Regulatory dynamics, including safety standards and intellectual property regulations, also impact the gaming hardware market. Compliance with these regulations is essential for manufacturers to ensure the safety and legality of their products. Additionally, intellectual property protection is crucial in a market driven by innovation, as companies strive to safeguard their proprietary technologies and designs from unauthorized use.
Gaming Hardware Market Highlights:
Global Gaming Hardware Market Overview
Gaming Hardware Market Size was valued at USD 35.2 billion in 2022. The gaming hardware market is projected to grow from USD 37.48 billion in 2023 to USD 62.04 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2024 - 2032). Rising professional gamers and hobbyists' desire for high-end gaming gear, and market leaders are introducing new and inventive devices are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Gaming Hardware Market Trends
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Increased multiplayer gaming video streaming is driving the market growth
Games are becoming a widely popular kind of entertainment on a global scale. In 2020, there were 3.1 billion gamers globally, and it is predicted that number will increase by 500 million by 2024. 7.7 billion People occupy the world, or just under half of it. The industry's revenues in 2021 exceeded those of movies, music, and books combined by $175 billion. The gaming industry has expanded into new territories thanks to artificial intelligence and machine learning. From network performance to player matching, these technologies are being used in everything. These cutting-edge technologies make it easier to do the delicate but crucial tasks of attracting new players and repelling bad actors, improving monetization, or creating and expanding new player ecosystems.
By live broadcasting multiplayer gaming sessions, video game fans are making significant advancements. A new generation of content-obsessed consumers has been created by the live and pre-recorded streaming of video games. Gamers need sophisticated gaming technology, such as speakers, joysticks, motion controllers, and consoles, to enable such massive video streaming events. Also, E-sports is also contributing the market growth. While arcade and action games are still quite popular, the e-sports industry has considerable development potential. During the peak of the COVID-19 epidemic, this trend became very important. Outdoor athletic activities were either postponed or canceled throughout 2020 due to the implementation of lockdowns. Hence, in order to experience the same level of enjoyment, sports fans turned to video gaming platforms.
According to studies, there will be 496 million people watching e-sports in 2020, an increase of 11.7% from the previous year. In addition, 4.4 million people broadcast e-sports content each month on Twitch in 2020, with pro e-sports players earning an average of US$ 5,000 each person. Altogether, the e-sports sector nearly became a $1 billion market in 2020. These developments only serve to highlight the domain's promising future.
Players are investing in the right hardware as e-sports popularity increases, expanding opportunities for major manufacturers. Also, a lot of start-ups are discovering ways to take advantage of this trend and boost their revenues. For instance, the Indian e-sports gaming platform Gamerji recently announced the funding of US$ 1.1 million for the expansion to MENA and South East Asia, the development of social features for players, and the improvement of tournament management technology. In addition to extending its tournament offerings in MENA and SEA in 2022, the firm expects to add more than five million Indian users to its platform. Thus, driving the gaming hardware market revenue.
Gaming Hardware Market Segment Insights:
Gaming Hardware Product Type Insights
The Gaming Hardware Market segmentation, based on product type includes consoles and accessories. Consoles dominates the Gaming Hardware Market in terms of product type and held share of 56.54% of the market. The launch of new generation consoles such as PlayStation 5 and Xbox Series X/S in late 2020 created a significant buzz in the gaming industry, resulting in strong sales for both consoles. Additionally, the COVID-19 pandemic has also contributed to the growth of console sales as people spent more time at home and turned to gaming as a form of entertainment.
Gaming Hardware End User Insights
The Gaming Hardware Market segmentation, based on end user, includes commercial and residential. In 2022, the commercial category accounted for about 61.24% of the revenue share in the worldwide gaming hardware market. The expansion can be linked to the growing use of video games in a variety of commercial settings, including airports, train stations, hotels, and restaurants. Also, as more people participate in e-sports, there is a growing market for high-end gaming consoles with superior graphics to those found in typical desktop or laptop PCs. The segment is anticipated to grow further because to this tendency.
Figure 1: Gaming Hardware Market, by End User, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Gaming Hardware Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American area will dominate this market, owing to large and established gaming culture with a significant number of gamers and gaming enthusiasts. This culture has resulted in a high demand for gaming hardware products, including consoles, gaming laptops, gaming peripherals, and accessories. In addition, a number of the biggest gaming hardware producers in the world, including Microsoft, Sony, and Nintendo, are based in the North American continent. These businesses are well-positioned to address the need for gaming hardware items in North America and elsewhere since they are well-established in the area. Thus, will boost market growth in this region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GAMING HARDWARE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific gaming hardware market accounts for the second-largest market share due to large and growing population with a high proportion of young people, who are the primary consumers of gaming hardware products. Furthermore, the rapid growth of the gaming industry in the APAC region can be attributed to the increasing availability of high-speed internet and mobile connectivity. This has enabled gamers to easily access online games and streaming services, resulting in a surge in demand for gaming hardware products. Moreover, China gaming hardware market held the largest market share, and the India gaming hardware market was the fastest-growing market in the region.
Europe gaming hardware market accounts for the third-largest market share due to several factors. The region has a large population of gamers who are willing to invest in high-quality gaming hardware. Additionally, the growth of Esports and the increasing popularity of mobile gaming has driven demand for gaming hardware in the region. Another important factor contributing to the strength of the gaming hardware market in Europe is the presence of several large gaming hardware companies, such as Logitech, Razer, and Corsair. These companies have established a strong presence in the European market, offering a range of gaming hardware products to consumers. Moreover, German gaming hardware market held the largest market share, and the UK gaming hardware market was the fastest-growing market in the European region.
Gaming Hardware Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the gaming hardware market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, gaming hardware industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global gaming hardware industry to benefit clients and increase the market sector. In recent years, the gaming hardware industry has offered some of the most significant advantages to medicine. Major players in the gaming hardware market, including, Microsoft Corporation, Nintendo Co Ltd., NVIDIA Corporation, Sony Corporation, Logitech International S.A, and Venom UK Ltd, Oculus VR, Playstation, Linden Research, Sega games, etc.
Microsoft is headquartered in Redmond, Washington, the US. Software development, licensing, and support are all services provided by Microsoft Corp. (Microsoft). The company provides a wide variety of operating systems, server applications, cross-device productivity tools, business solution tools, desktop and server administration tools, video games, and training and certification services. Additionally, it creates, produces, and markets hardware items like Computers, tablets, game consoles, and other sophisticated gadgets. The company offers a wide range of services, such as consultancy, cloud-based solutions, and solution support. Through original equipment manufacturers, distributors, resellers, online marketplaces, Microsoft stores, and other partner channels, Microsoft promotes, distributes, and sells its products. The company has operations throughout the Middle East, Africa, the Americas, Europe, and Asia-Pacific. In February 2023, Microsoft and NVIDIA announced a 10-year agreement to offer Xbox PC titles to the more than 25 million-user NVIDIA® GeForce NOWTM cloud gaming service, which is available in more than 100 countries. Collaboration will bring popular Xbox games, such as Call of Duty and Minecraft from Activision, to NVIDIA GeForce NOW cloud gaming service.
Sony Group Corp (Sony) is a manufacturer of electronic equipment, semiconductors, medical-related equipment, instruments, and devices. The company’s products include televisions, mobile phones, cameras, music systems, game consoles and software, semiconductors, batteries, and other electronic components. Sony produces, acquires, and distributes recorded music, motion pictures, and television programming; and operates television and digital networks. It also provides banking and financial services, including life and non-life insurance. The company markets products through sales subsidiaries, distributors, and direct sales through the internet. It markets products under Sony, PlayStation, Walkman, Blu-ray, Cyber-shot, Bravia, Exmor, Experia, and Airpeak brand names. The company operates in Asia-Pacific, Europe, the Middle East, Africa, and the Americas. Sony is headquartered in Minato-Ku, Tokyo, Japan.
Key Companies in the Gaming Hardware market include
- Microsoft Corporation
- Nintendo Co Ltd.
- NVIDIA Corporation
- Sony Corporation
- Logitech International S.A
- Venom UK Ltd
- Oculus VR
- Playstation
- Linden Research
- Sega games
Gaming Hardware Industry Developments
March 2023: In order to expand the number of games available to users worldwide, Microsoft established a cooperation with cloud gaming service provider Boosteroid.
February 2023: Microsoft and NVIDIA announced a 10-year agreement to offer Xbox PC titles to the more than 25 million-user NVIDIA® GeForce NOWTM cloud gaming service, which is available in more than 100 countries. Collaboration will bring popular Xbox games, such as Call of Duty and Minecraft from Activision, to NVIDIA GeForce NOW cloud gaming service.
Gaming Hardware Market Segmentation
Gaming Hardware Type Outlook
- Consoles
- Accessories
Gaming Hardware End User Outlook
- Commercial
- Residential
Gaming Hardware Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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