ReportNewzoo
Global Games Market Report 2021: The VR & Metaverse Edition
1 Jan 202138 pages~34 min full read
The global games market is projected to reach $175.8 billion in 2021, a 1.1% year-on-year decline caused by hardware shortages and AAA game delays.
Mobile gaming remains the industry's largest segment, generating $90.7 billion and accounting for 51% of total market revenue despite privacy-related marketing hurdles.
The industry is forecast to reach $218 billion in total revenue by 2024, driven by the long-term growth of the metaverse and social gaming hubs.
The Asia-Pacific region is the primary market driver, contributing over 50% of global revenue and hosting 55% of the world’s three billion players.
The virtual reality sector has seen a revitalization in commercial interest, significantly bolstered by the success of the Oculus Quest 2.
Market consolidation is accelerating through high-profile mergers and acquisitions as companies pivot toward social connectivity and immersive hardware.
The global games market is projected to generate $175.8 billion in 2021, representing a marginal 1.1% year-on-year decline. This temporary contraction is primarily driven by pandemic-related supply chain disruptions, hardware shortages, and significant delays in AAA game releases, which have disproportionately impacted the console and PC segments. Despite these challenges, mobile gaming continues to expand, accounting for $90.7$ billion or 51% of total market revenue. The Asia-Pacific region remains the dominant force in the industry, contributing over half of all global revenue and supporting 55% of the world’s three billion players.
The long-term outlook for the industry remains robust, with total revenues expected to surpass $218 billion by 2024. This growth is fueled by the permanent acceleration of the metaverse trend, which has transitioned video games from mere entertainment products into essential social hubs. This shift has revitalized the virtual reality sector, particularly following the commercial success of the Oculus Quest 2, and has spurred a wave of consolidation through high-profile mergers and acquisitions. While privacy changes such as the removal of Apple’s IDFA present new hurdles for mobile marketing, the segment’s 4.4% growth indicates continued resilience.
Strategic decision-making in this evolving landscape relies on granular performance metrics and consumer insights across dozens of global markets. By tracking key performance indicators such as monthly active users and retention rates for thousands of titles, stakeholders can navigate the complexities of game development and transaction advisory. Ultimately, the integration of social connectivity, immersive hardware, and mobile accessibility ensures that the gaming industry will continue its upward trajectory beyond the immediate disruptions of the early 2020s.
