Gaming Hardware Market

Gaming Hardware Industry Outlook (2022-2032)

Sales of gaming hardware reached US$ 34.2 Billion in 2021, and are forecast to register a Y-o-Y increase of 6.1% in 2022 to be valued at US$ 36.3 Billion. Across the 2022-2032 assessment period, the gaming hardware market is projected to expand at a 4.6% CAGR to reach US$ 56.8 Billion.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 34. 2 Billion
Expected Market Value (2022)	US$ 36.3 Billion
Projected Forecast Value (2032)	US$ 56.8 Billion
Global Growth Rate (2022-2032)	4.6% CAGR
Market Value of the U.S (2032)	US$ 7 Billion
Growth Rate of Japan (2022-2032)	3.8% CAGR
Market Value of China (2032)	US$ 2.2 Billion
Key Companies Profiled	Microsoft Corporation Nintendo Co. Ltd. NVIDIA Corporation Sony Corporation Logitech International S.A Magic Leap Inc. A4Tech Co. Ltd. SCUF Gaming International LLC V-MODA LLC Razer Inc. Turtle Beach Corporation

Advancements in gaming technology to provide enhanced experiences with regard to gameplay, augmented reality and control have led to proliferation of key hardware accessories. From 2016 to 2021, sales of gaming accessories expanded at a CAGR of 6.4%, while residential gaming hardware demand grew at a 5.3% value CAGR during the same historical period.

Revenue Analysis of Gaming Hardware 2016-2021 vs. Future Outlook 2022-2032

Sales of gaming hardware inclined steadily at a CAGR of 5.2% from 2016 to 2021- according to market research & competitive intelligence provider Fact.MR. Rapid advancements in gaming technology to include such advancements as seamless motion, real-time image capturing, voice recognition and 3D facial scanning have all led to increased demand for advanced gaming hardware.

Likewise, the introduction of cloud gaming or gaming-as-a-service (GaaS) have led to increased demand for hardware devices such as PCs, smartphones and consoles. Throughout the COVID-19 pandemic, prospects for gaming hardware continued to incline, as the imposition of lockdowns led to cessation of outdoor games, leading to increased demand for video games.

As the world gradually reverts to normal, the popularity of virtual gaming is not expected to wane anytime soon. Out of all the regions profiled by Fact.MR, U.K witnessed the highest adoption of gaming hardware, experiencing a CAGR of 6.4% from 2016 to 2021, followed by the U.S at 6.2% CAGR. Japan, India and China followed at CAGRs of 4.5%, 4% and 3.7% respectively. From 2022-2032, the market for gaming consoles is expected to flourish 1.5x.

Key Factors Driving Gaming Hardware Market Growth

Growing Video Streaming of Multiplayer Gaming Events Widening Prospects

Games are no longer a niche hobby; it’s global, mainstream entertainment. There were 3.1 billion gamers worldwide in 2020 and it is estimated that by 2024 there will be another 500 million. With a global population of 7.7 billion, that's nearly half the planet. Revenues in 2021 reached $175 billion—likely more than movies, music, and books combined.

Artificial intelligence and machine learning have brought the gaming industry to new frontiers. These technologies increasingly power everything from network performance to global player matching. The delicate but essential work of encouraging newcomers and discouraging bad actors, optimizing monetization, or building and scaling up new player environments are all facilitated by these advanced technologies.

Video game enthusiasts are taking a great leap forward by live streaming multiplayer gaming events. Both live and pre-recorded, video games streaming has spawned a unique fan base, generating a new generation of content loyal customers. To facilitate such large-scale video streaming events, gamers require advanced gaming hardware, including speakers, joysticks, motion controllers and consoles.

E-Sports to Generate Significant Growth Prospects in the Long-Run

While arcade and action games continue to remain popular, significant growth prospects exist within the e-sports domain. This trend especially gained relevance during the height of the COVID-19 pandemic. Given the imposition of lockdowns, outdoor sporting events were either postponed or canceled throughout 2020. Hence, sports lovers turned their attention towards video gaming platforms to derive the same sense of enjoyment.

Studies advocate that e-sports viewership increased at a rate of 11.7% in 2020, with a total of 496 million viewers. Moreover, 4.4 million monthly e-sports players streamed on Twitch in 2020, with average earnings of pro e-sports players reaching US$ 5,000 per capita. Overall, the e-sports domain almost emerged as a billion dollar industry throughout 2020. Given these trends, it only goes to show that the domain enjoys a bright future ahead.

As this preference for e-sports continues to grow, players are investing in appropriate hardware, widening prospects for key manufacturers. Moreover, a number of start-ups are finding opportunities to capitalize on this trend and increase their sales. For instance, in India, e-sports gaming platform Gamerji announced the raising of US$ 1.1 million to enhance tournament organization technology, build social features for gamers and expand to MENA and South East Asia. The company plans to gain more than five million users from India, while also expanding its tournament services in MENA and SEA in 2022.

Key Challenges/Restraints to Gaming Hardware Industry Growth

Expensive Nature of Gaming Hardware likely to Hinder Uptake

Although gaming has opened a number of frontiers for various industries as well as individuals, associated equipment and hardware continues to be expensive, rendering them unaffordable to various end users.

This problem has been exacerbated in several regions due to semiconductor chip shortages used to power gaming laptops and consoles. There are still countries which are yet to recover from the pandemic induced slowdown.

In November 2021, Japanese company Nintendo Co. Ltd. reported that a global chip shortage has compelled the firm to scale back expectations for sales of its Switch device, which could impact gaming hardware development. Fortunately, the company is in the process of substituting hardware components which would reduce the impact of this crunch by tweaking existing component designs.

Country-wise Analysis

How will Gaming Hardware Sales Fare across the U.S?

Rising Implementation of Games across Key Government Agencies to Fuel Growth

According to Fact.MR, gaming hardware sales in the U.S are expected to flourish at a 5.6% CAGR until 2032, reaching US$ 16.4 Billion. Throughout the period of assessment, the region will register absolute dollar growth worth US$ 6.8 Billion. An increase in online gaming popularity will propel sales across the forecast period. In addition, government initiatives to promote e-sports methods to better attain agency goals have led to proliferation of advanced gaming hardware.

The U.S. government has been using funding opportunities as one way to foster innovation in game-based approaches, providing money for agencies or organizations to create games that help them solve problems. The Federal Games Guild, an informal community of practice in gaming use across federal entities, lists funding opportunities for interested researchers or organizations.

Various industries, including healthcare, education and policymaking, are implementing gaming to better engage with stakeholders. For instance, the Foldit platform encourages players to solve protein “puzzles” as a means of crowdsourcing health research. By distributing problem sets and encouraging competition through gaming mechanics, Foldit speeds up research and supports research directives for innovation in the fields of health and computing.

What are the Growth Prospects for Gaming Hardware in China?

High Adoption of Consoles to Spur Market Demand across the East Asian Giant

In recent years, China has emerged as a console gaming giant. The overturn of a previously imposed ban in 2014 has broadened scope for gaming console manufacturers, with products such as Nintendo Switch leading sales until 2025. Additionally, rising demand for high-end games by gaming enthusiasts will majorly propel gaming hardware market demand until 2032.

Growth opportunities for consoles abound in subscription based gaming services, free-to-play (F2P) platforms and cloud gaming. Console platform developers are slated to gain maximum benefits via subscription based platforms, while the latter categories are set to generate opportunities for game developers. By 2032, US$ 2.2 Billion worth of revenue is likely to be generated by the Chinese market, as per Fact.MR.

Research has concluded that consoles, console hardware and console games comprise over 4% of the domestic gaming industry. With the outbreak of COVID-19, prospects have further heightened, as mandatory stay-at-home directives compelled residents to spend more time on the virtual space, leading to increased amounts of gaming throughout 2020. This trend of increased gaming is likely to remain prevalent in 2022. Fact.MR forecasts the Chinese gaming hardware market to yield a dollar opportunity worth US$ 0.6 Billion from 2022-2032.

Is Japan Likely to Emerge as an Attractive Market for Gaming Hardware?

Prospects Appear highly Lucrative in the Mobile Gaming Segment

Being the epicenter of the world’s leading technological advancements in the field of consumer electronics, it is no surprise that Japan is a significant market for video games. The country has been at the forefront of gaming technology since decades, right from the classic Sega and Nintendo arcade and video games to some of the most renowned games in the PlayStation 2 era.

While it may not contribute significantly towards PC based games, Japan has emerged as a pioneer in the mobile gaming industry. As of 2020, it was reported that Japan accounted for nearly a quarter of all mobile game spending, with popular anime games such as Pokémon GO and DBZ Dokkan Battle being the most frequented ones. This has pushed gaming hardware providers to introduce advanced consoles and accessories.

According to Fact.MR, Japan is forecast to register a CAGR worth 3.8% in the global gaming hardware market until 2032. A number of gaming start-ups have spawned across the Japanese market, which will significantly contribute to market growth. One of these start-ups, Nexon Co. Ltd., announced in 2020 that it would diversify into the mobile gaming domain by introducing several long-running PC titles to mobile devices to enhance revenue.

Country-wise Gaming Hardware Market Value CAGR

U.S	5.6% CAGR
U.K	5.6% CAGR
China	3.1% CAGR
Japan	3.8% CAGR
India	3.2% CAGR

Category-wise Insights

By Type, which Gaming Hardware Category will Register Highest Sales?

Gaming Accessories for Enhancing Overall Experience to be Most Preferred

As per Fact.MR’s report, gaming accessories are expected to register maximum sales, inclining at a CAGR of 5.9% from 2022-2032. As gaming technology continues to develop, demand for advanced controllers, headsets, cameras and joysticks are inclining significantly. Additionally, manufacturers are incorporating advancements such as 3D facial scanning and augmented reality.

Recent years have witnessed a surge in gaming accessories manufacturing. For instance, Realme has introduced a new range of portable Bluetooth speakers in 2021, along with other gaming accessories. These new product lines include the Realme Brick Bluetooth Speaker, Realme Cooling Back Clip Neo, Realme Type-C SuperDart game cable and Realme mobile game trigger.

Why are Residential Gaming Hardware Witnessing High Adoption?

Increased Smartphone and Electronic Gadget Ownership Spiking Sales

Sales of residential gaming hardware are slated to flourish at a CAGR of 4.9% across the forecast period ranging from 2022-2032. Increased demand for streamlined gaming experience has increased purchase of smartphones and gaming laptops within residential settings, contributing to heightened sales.

As more people are able to afford smart gadgets, they prefer playing games within the comfort of their homes. Moreover, the concept of gaming zones, cafes and parlors is gradually becoming redundant. Consequently, demand for residential grade gaming hardware is increasing substantially.

Competitive Landscape

Prominent gaming hardware manufacturers are emphasizing on technological innovations to introduce highly sophisticated product lines. Key manufacturers are incorporating advancements such as augmented reality, IoT and 3D scanning among others to provide seamless experiences to end users. Some key developments are as follows:

• At CES 2021, Microsoft Corporation announced that its device partner Acer Inc. introduced the Predator Tritron 300 SE Gaming Notebook, consisting of 11th Gen Intel Core i7 H35-series processors, an NVIDIA GeForce RTX 3060 Laptop GPU, with support for the latest DirectX 12 Ultimate gaming features
• In March 2022, gaming giant Nintendo Co. Ltd. announced plans to introduce the Nintendo Switch 2, complete with 4K graphics. Once launched, the console could provide major competition to newer Xbox and PlayStation consoles and games. Also, the product will consist of an even better display, consisting of a 7-inch OLED screen offering 1080p displays

Key Segments Covered in the Gaming Hardware Market Study

• Gaming Hardware by Type :

  • Gaming Consoles
    • Standard Gaming Consoles
    • Handheld Gaming Consoles
  • Gaming Accessories
    • Gaming Controller
    • Gaming Headsets
    • Gaming Cameras

• Gaming Hardware by End User :

  • Commercial Gaming Hardware
  • Residential Gaming Hardware

• Gaming Hardware by Region :

  • North America Gaming Hardware Market
  • South America Gaming Hardware Market
  • Europe Gaming Hardware Market
  • Asia Pacific Gaming Hardware Market
  • Middle East & Africa Gaming Hardware Market