The gaming gadgets market is expected to grow at 8.2% CAGR through 2032

According to FMI, the gaming gadget industry will be worth $71.30 billion in 2022 and $156.7 billion in 2032. Between 2022 and 2032, the market is estimated to grow at a compound annual growth rate of 8.2%.

Innovations in technology, including graphics quality, VR, AR and processing power coupled device miniaturization, have played a key role in the electronics and smart gadget industries. For example, in 2020 Sega announced the miniature Game Gear Micro, a palm-sized device that comes in four colors.

With investments in technology and product launches with value-added services, the demand for gaming gadgets is expected to grow rapidly over the forecast period. As a result, brands have been extensively focused on leveraging their brand position by increasing retail penetration.

Brands actively partner with local and regional online retailers to ensure product accessibility in developed and developing countries. Sega of America is a company with significant local and regional online penetration. These trends are expected to drive growth in the market.

One trend propelling the gaming gadget market is the rise of eSports. Rising viewership and interest in esports has opened up new opportunities for gaming gadgets in countries other than China, including Vietnam, Malaysia and Indonesia.

Key points from the gaming gadgets market research:

  • PlayStation products are expected to have a remarkable 46.7% revenue share in 2021, aided by frequent technical and system updates.
  • Home consoles dominate the market with a wider range of game options from players like Nintendo, Sony and Microsoft.
  • The US has a remarkable 79.4% value share in North America, thanks to the increase in the number of active gamers in recent years.
  • Thailand is a key market in South Asia, with a CAGR of 18.4% due to increased spending on premium products in the country.
  • China offers opportunities for the game industry thanks to a larger consumer population and higher spending on game content and hardware.

“Frequent launches of new game content with superior graphics, rapidly evolving technologies such as artificial intelligence (AI) and virtual reality (VR), are key factors creating a favorable environment for major console manufacturers and will drive the growth of the gaming gadget market in the coming decade” , says an FMI analyst.

Impact of COVID-19 on the market

The outbreak of COVID-19 has led to an economic downturn due to business disruptions in several sectors. Retail has been hit hard. Reducing the total discretionary spending level presents a temporary challenge for players operating in the market.

Strong year-over-year revenue growth offset these issues as consumers were subject to shelter-in-place restrictions. Restrictions on various forms of entertainment and social interaction are expected to sustain demand for gadgets in the coming months.

Players are now focused on improving online penetration, giving players instant access to a wider consumer base at minimal cost.

Who will win?

Leading gaming gadget manufacturers have focused on aggressive promotional strategies, advertisements and new product launches that have fueled global gaming gadget sales growth.

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