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The global gaming industry is expected to reach over 1.3 billion users this year, 91 million more than in 2023 and almost twice the figure reported in 2017. Although the number of gamers continues to rise, this massive user base seems to be spending less and less on gaming equipment, and this negative trend will continue in the following years.
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According to data presented by Stocklytics.com, the annual growth rate in the gaming equipment market is expected to halve and drop to only 1.7% by 2029.
Growth Rate in the Gaming Equipment Segment Already Dropped Sixfold
Supply chain issues, global economic conditions, and the shift towards mobile and cloud gaming have had a major impact on the gaming equipment market in recent years, causing significant fluctuations and revenue growth slowdowns. Although the surge in gaming amid the pandemic and the launch of new-generation VR headsets and consoles, PlayStation 5 and Xbox Series X, caused global gaming equipment sales to skyrocket between 2020 and 2022, the entire market is cooling down, with growth rates far from those reported in previous years.
According to a Statista Market Insight survey, global gaming equipment sales saw double-digit growth between 2019 and 2022, rising by an average of 15% annually. Statistics show that 2020 and 2021 were undoubtedly the best years for selling gaming consoles and VR headsets, with revenues increasing by an impressive 23% and almost 17%, respectively. However, it was downhill from there.
After slipping to 5% in 2023, the annual growth rate in the gaming equipment segment is forecasted to drop to 3.6% in 2024, showing a sixfold decrease since 2021. This negative trend will continue in the following years. Statista expects the annual growth rate to drop to only 1.7% by 2029, only half the figure expected this year and 13 times less than at the market peak. This modest growth will help the market revenue increase by only 11% or $4 billion in the next five years, compared to a massive 88% increase in the past six years.
VR Headsets Market Facing a Fivefold Decline, Growth Rate in the Gaming Console Segment to Remain Flat
Statista data also show that the world`s largest gaming industry, China, will see the biggest decrease in gaming equipment spending. In 2024, the Chinese will spend roughly $4 billion on gaming consoles and VR headsets, or 10.2% more than last year. By 2029, market revenue will slightly rise to over $4 billion, but the annual growth rate will drop 34 times to only 0.3%.
Although far behind China in total gaming revenues, Americans are much bigger spenders on gaming equipment, and that won`t change in the future. By 2029, the US gaming equipment revenue will rise from $9.7 billion to $10.9 billion, while the market growth rate will double to 1.8%.
The Japanese market is also facing a slowdown. Statista expects the gaming equipment sales in the country to rise by only $100 million in the next five years, while the growth rate will drop from 3.8% to 0.7%.
Analyzed by the type of device, VR headsets face a much more severe drop than gaming consoles, with their annual revenue growth rate plunging five times to 1.6% by 2029. The growth rate in the gaming console segment will remain flat, standing at 1.8%.
The full story and statistics can be found here: https://stocklytics.com/content/global-demand-for-gaming-equipment-is-cooling-down-annual-revenue-growth-rate-to-halve-to-only-1-7-by-2029/
