ReportGoogle & Newzoo
Beyond 2021: Where Does Gaming Go Next?
1 Jan 202119 pages~25 min full read
The global games market reached $175.8 billion in 2021 and is projected to exceed $218 billion by 2024, representing a compound annual growth rate of 8.7%.
Mobile gaming remains the dominant sector, accounting for 52% of total industry revenue.
The pandemic-driven surge added 173 million new or returning players, 53% of whom are female, bringing the global player base to nearly 3 billion.
Engagement is shifting toward content consumption, with live-streaming audiences projected to reach 920 million by 2024.
The industry is transitioning toward a platform-agnostic model, as cross-platform play and cloud gaming dissolve traditional hardware barriers exacerbated by semiconductor shortages.
Long-term retention depends on evolving games into social hubs or 'metaverses' that integrate non-gaming experiences like virtual concerts and identity expression.
The global games market experienced unprecedented acceleration between February 2020 and May 2021, driven by the unique social and economic conditions of the COVID-19 pandemic. This period saw the addition of 173 million new or returning players, bringing the global total to nearly 3 billion. While veteran players—those active before the pandemic—accounted for the majority of market growth by increasing their playtime by 42%, new and returning players represent a significant demographic shift, with 53% of this group being female.
The industry reached $175.8$ billion in revenue in 2021, with mobile gaming accounting for 52% of the total. Projections indicate a compound annual growth rate of 8.7%, with the market expected to surpass $218 billion by 2024. Key drivers for this continued expansion include the rise of gaming subscription services, which provide low-barrier entry points for new players, and the evolution of games into social hubs or "metaverses." These persistent virtual worlds facilitate non-gaming experiences such as virtual concerts and identity expression through avatars, effectively competing with traditional social media.
Engagement is increasingly defined by content consumption beyond active play. Live-streaming audiences are expected to reach 920 million by 2024, and players report a higher intent to continue watching gaming content than to increase their spending or playtime. Furthermore, the industry is moving toward a platform-agnostic future. Cross-platform play and cloud gaming are dissolving traditional hardware barriers, a trend reinforced by global semiconductor shortages and game development delays that have hampered the console and PC segments more than mobile.
This analysis is based on a Newzoo study commissioned by Google, utilizing market sizing models and a survey of over 16,900 respondents across 16 countries in North America, Latin America, Europe, the Middle East, Africa, and Asia-Pacific. The findings suggest that while new players may be less "sticky" than veterans, long-term retention will depend on fostering a holistic gaming culture that integrates social interaction, viewership, and multi-platform accessibility.
