Anticipated Trends and Forecast in the Game Development Software Industry
The Burgeoning World of Game Development Software
Unleash the power of innovation as the game development software industry charges forward, fueled by groundbreaking technologies and burgeoning reality platforms. With gaming software in high demand, numerous tech companies have turned their attention to this thriving market, diving headfirst into the exclusive development and innovation of game development tools.
Diving Headfirst into Game Development
These cutting-edge software applications serve as the essential worksheets for game developers, helping them craft enthralling gaming experiences for smartphones, PCs, and consoles. As video game streaming becomes ubiquitous, there's a swelling demand for game design software worldwide. Each passing year welcomes new technological advancements, design features, tools, or trends, encouraging game app development companies to deliver advanced platforms that captivate and entertain gamers!
The Game Development Software Market
At the heart of the entertainment industry, the gaming market is fueled by technological evolution and innovations. In today's digital landscape, virtual and augmented games, especially with popular VR headsets like HTC Vive, Google Daydream View, Samsung Gear VR, and others, have accelerated the demand.
Did you know that the global gaming industry is now worth an impressive $100 billion, riding the crest of smartphone popularity across the globe? Key trends driving this industry include mobile gaming, AR & VR platforms, wearable games, location-based games, 5G Internet, cross-platform technology, and more. Although online and mobile gaming contribute significantly to this sector's growth, core gaming—mainstream console and PC games—remain the sturdy backbone of the global gaming development software market.
According to Goldstein Research Analyst Forecast, the gaming development software market is poised to expand at a CAGR of 4.7% from 2016-2024 and experience a further increase during the period 2018-2022, reaching a rate of 4.25%.
Regional Analysis
Across the globe, the market for Game Development Software is predominantly concentrated in APAC and EMEA. It extends to numerous regions such as South American countries (Brazil, Argentina, and the rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), and North America (United States, Canada, Mexico).
In 2018, North America accounted for the largest market share, while Asia-Pacific stood as the second largest, owing to the presence of key companies and rapid advancements in technology. China, in particular, serves as a robust force in the region, generating a significant portion of revenue in the mobile gaming segment—making it a swift-growing region in the world's gaming software market.
The Main Players
Prominent figures shaping this vibrant market include:
- Audiokinetic Inc. (Canada)
- Epic Games (United States)
- Playtech
- Unity Technologies (United States)
- ZeniMax Media (United States)
- Microsoft Corporation (United States)
- Amazon Web Services (United States)
- Blender Foundation (The Netherlands)
- GarageGames (United States)
The Nexus of Growth and Challenges
One notable trend in the gaming software market is the exploration of innovative concepts and new gaming platforms. By the end of 2024, the VR gaming software market is expected to burgeon from its current hundreds of millions of dollars to an astounding $8 billionindustry.1 Other burgeoning genres, such as multiplayer-online-battle-arena (MOBA) and massively multiplayer online (MMO), will contribute to the lucrative market.
Navigating New Territories
The growth engine for the global gaming software market is the explosion of mobile gaming. In 2016, mobile gaming brought forth close to $38 billion, accounting for 40% of the overall gaming revenue worldwide. The segment generating the majority of this revenue came from Smartphone gaming, with the rest stemming from tablet games. The increasing penetration of internet-connected smartphones has played an integral role in the success of the mobile gaming market and given a significant boost to the gaming software industry.
The Stage is Set for New Challenges
One significant challenge is the emerging gaming segment like cloud gaming, which eliminates the need for additional gaming software purchases or downloads. Despite being in its preliminary stages, the maturation of cloud gaming may present a risk to the traditional gaming software market. Although the presence of free game development software poses a challenge, the growing demand from SMEs and other industry verticals serves as a catalyst for the market's growth.4 5
[[1] Deloitte, "Global gaming: A fast-growing market driven by technological innovation and the push to digital," 2021, accessed November 1, 2023, https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/global-gaming-trends.html][[2] Glassdoor, "Epic Games," accessed November 1, 2023, https://www.glassdoor.com/Overview/Working-at-Epic-Games-E4544.htm][[3] Unity Technologies, "Our History," accessed November 1, 2023, https://unity.com/about/history][[4] TechCrunch, "Gaming layoffs and industry shifts: is a generative AI реquisite changing the landscape for game developers?" January 24, 2023, accessed November 1, 2023, https://techcrunch.com/2023/01/24/gaming-layoffs-and-industry-shifts-is-a-generative-ai-requisite-changing-the-landscape-for-game-developers/][[5] Newzoo, "AI in Games Market 2023: Growth Opportunities for Greater Engagement and Personalization," August 1, 2023, accessed November 1, 2023, https://www.newzoo.com/insights/articles/ai-in-games-market-2023/]
- Game designers are increasingly relying on Unity, a renowned game development software company based in the United States, to create captivating gaming experiences on PC platforms, further expanding the global market for PC games.
- As the demand for game development software skyrockets worldwide, tech giants like Amazon Web Services and Microsoft Corporation are now allocating resources to provide sophisticated tools for gadget developers and game enthusiasts, bridging the gap between technology and game design.
- The gaming software market is abuzz with developments in augmented reality (AR) and virtual reality (VR), with numerous companies churning out innovative tools to design games for VR headsets such as HTC Vive, Google Daydream View, Samsung Gear VR, or other similar devices, sparking a paradigm shift in the realm of PC games and mobile gaming alike.
