The gaming gadgets industry is predicted to be worth US$71.30 billion by 2022 and US$156.7 billion by 2032, according to FMI. Between 2022 and 2032, the market is estimated to increase at a compound yearly growth rate of 8.2%.
Innovations in technology, including graphic quality, VR, AR and processing power coupled miniaturisation of devices, have played key roles in the electronics and smart gadgets industry. For example, Sega in 2020, announced the miniature Game Gear Micro, a palm-sized device that comes in four colours.
With investments in technology and product launches with value-added services, the demand for gaming gadgets is expected to grow rapidly during the forecast period. As a result, brands are extensively focused on leveraging their brand position by enhancing retail penetration.
Brands actively collaborate 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 fuel growth in the market.
One trend propelling the gaming gadgets market is the rise of eSports. Rising viewership and increasing interest towards e-sports have unlocked new opportunities for gaming gadgets in countries other than China, including Vietnam, Malaysia, and Indonesia.
Key Takeaways from the Gaming Gadgets Market Study:
- PlayStation products are expected to hold a noteworthy revenue share of 46.7% in 2021, aided by frequent technical and system updates.
- Home consoles dominate the market with a wider scope of gaming options from players like Nintendo, Sony, and Microsoft.
- The U.S. holds a noteworthy value share of 79.4% in North America, owing to the upsurge in the number of active gamers in recent years.
- Thailand is a key market in South Asia, reflecting a CAGR of 18.4% owing to higher spending on premium products in the country.
- China showcases opportunities for the gaming industry owing to a larger consumer population and increased gaming content and hardware spending.
“Frequent launches of new gaming content with superior graphics, rapidly evolving technologies such as artificial intelligence (AI) and virtual reality (VR), are key factors creating a conducive environment for major console manufacturers and will influence growth in 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 resulted in an economic downswing by causing disruptions in business operations in various sectors. The retail industry has been hit hard. A reduction in overall discretionary spending levels poses 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. Limits on varied forms of entertainment and social interaction are expected to keep the demand for gadgets afloat in the coming months.
Players are now focused on improving online penetration, allowing players to access a broader consumer base at once at minimum costs.
Who is winning?
Leading manufacturers of gaming gadgets are focused on aggressive promotional strategies, advertisements, and new product launches that have driven sales growth of gaming gadgets globally.