Online Gaming Statistics: Trends & Analysis of the Industry (2023)

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The popularity of online games has been skyrocketing in recent years, and it’s a huge market today. There are now over 1.1 billion online gamers worldwide, and there’s a whole economy dedicated to the pastime. With all the technological innovations being launched, such as AR, VR, and the metaverse, online gaming will only grow, with more and more players and fans getting on board.

In this article, we’re going to explore the numbers behind this growing industry, including online gaming statistics, market trends, the demographics of the sector, ongoing and upcoming innovations, and the significance of all of the above. Let’s dive into the statistics.

Power-Packed Online Gaming Statistics for 2023

Source: Statista

The revenue of the online gaming industry is projected to increase from $26.14 billion in 2023 to $32.56 billion in 2027. There are currently around 1.13 billion online gamers worldwide, and by 2027, that figure will grow to 1.25 billion. Given that we only had 840 million gamers in 2019, this growth rate is truly staggering.

So, what’s behind all this growth?

The digital transformation sparked by the pandemic drove innovations in AR/VR and cloud gaming to the stars. These new platforms to fully immerse yourself in online games, plus the rise of gaming in the Metaverse, are taking the world of gaming by storm. In fact, the revenue of the VR gaming segment is forecast to reach $2.5 billion this year.

Let’s take a closer look at the online gaming market and its demographics.

Explosive Growth of the Online Gaming Market in 2023

First, let’s take a look at prospective growth around the world. 

Here’s our overview of the online gaming market growth from 2023 to 2027 across different countries:

As you can see, China, the USA, and Japan are expected to have a very high number of users and high penetration rates by 2027. 

These three countries are hubs of innovation and technological advancements, which are the main driving factors behind the growth of online gaming. So, it’s no surprise that they’re in the lead.

Other factors are increased accessibility, the rise of mobile gaming, and changing consumer preferences. The increased use of AR and VR (Augmented Reality and Virtual Reality) leads to better connectivity solutions, which in turn leads to more accessible Internet connections, bridging the digital divide. That means new emerging demographics for online gaming.

The rise of mobile gaming is another factor – and a huge market opportunity. In 2022, it was the biggest online gaming segment, having earned $103.5 billion in revenue that year. We’ll take a closer look at mobile gaming in the next section.

In terms of new consumer preferences, they’ve shifted towards online gaming due to its convenience, social aspects, and the rise in competitive esports. Online MPGs, Twitch, and esports tournaments have created a truly global gaming community.

Diverse Player Demographics & Engagement Patterns

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A 2020 survey by the Entertainment Software Association revealed that three-quarters of American households have at least one gamer, including 70% of American kids and 64% of adults. In fact, 55% of parents play online games with their kids at least once a week.

One trend we see is that despite the stereotypes, the shares of male and female online gamers aren’t too different. And when it comes to tablet games, they’re enjoyed equally by men and women alike.
The stereotype that only young people play online games isn’t true either. While younger demographics continue to dominate, the average age of gamers has increased, and the biggest share of US gamers (36%) is in the 18-36 age group.

Online gaming trends reveal some notable shifts in the industry, as well, such as:

• Mobile gaming: Thanks to the widespread use of smartphones and tablets, mobile gaming is on the rise. It’s enabling players to play on the go, making online games more accessible. 
• There are more casual gamers who prefer shorter sessions and casual mechanics. They’re driving developers to create titles that cater to a wider audience and offer engaging experiences that can be enjoyed in bite-sized increments.
• Community building has been instrumental for the industry as online gaming communities like Discord provide spaces for players to connect, share experiences, and build relationships. Developers and community managers should engage with these communities, listen to feedback, and foster positive environments and healthy relationships.

Unveiling the Future: Emerging Trends in Online Gaming

As we mentioned, the mobile gaming revolution is in full swing. The rise of casual gamers is a significant reason for this. 

Another emerging online gaming trend is that of cross-platform games, which bridge the game-devices gap and allow gamers to connect with the community around games across all devices. Added social features also make the experience more engaging and interactive.

In addition to that, the success of gaming live-streaming platforms like Twitch is another notable trend. They’re giving rise to gaming influencers who show off their skills and engage with their audience in real-time.

Let’s take a closer look at these trends.

Mobile Gaming Revolution

Source: Statista

As you can see, mobile games revenue amounted to $92.2 billion in 2022 – more than the revenue from console games and PC games combined. And that revenue is expected to reach $376.3 billion by 2027.

Advancing 5G technologies are significantly reducing latency and providing better speeds for mobile gaming, improving the user experience and eliminating lag – driving further engagement. At the same time, many gamers are also subscribing to the best gaming VPNs for anonymous, secure connections.

Here’s a breakdown of the highest-grossing mobile games of 2022 by revenue:

Cross-Platform Gaming & Integration of Social Features

Source: Statista

Cross-platform or cross-device gaming, which allows players to switch between devices and platforms while saving their progress, is revolutionizing the gaming industry. As many as 59% of gamers were playing games on more than one device as far back as 2018. And according to more recent statistics, 25% of PC gamers also play mobile and console games.

Social features and opportunities to engage with like-minded players are a big reason for the rise of cross-device gaming. These aspects are a top feature for 31% of PC and console cross-device gamers.

Gaming community building and engagement have also become important aspects of cross-platform gamers’ experience. Reportedly, 55% of these gamers got together in the game’s world while not playing the game in 2021, while 78% of gamers were interested in such engagements in future.

The Thriving World of Live Streaming Platforms & Gaming Influencers

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The popularity of gaming streaming platforms like Twitch and YouTube Gaming has surged in recent years, with almost 90,000 Twitch channels live today. Twitch statistics tell us that its all-time peak figure was 6.64 million concurrent viewers on June 25, 2022. But the highest watch time in the last 365 days occurred on November 6, 2022, amounting to over 80 million hours in a single day.

As of May 2023, Twitch has over 7.25 million active streamers, with user Ironmouse having the most subscribers (160,000). But gaming influencers on YouTube Gaming are also gaining momentum. For example, the top YouTube gaming influencer Luis Fernando Flores, known as Fernanfloo, has 46 million subscribers.

Meanwhile, the best Web3 gaming products and platforms like Tamadoge are entirely reliant on the communities that they build, of course.

VR & AR Redefining the Gaming Experience

Source: Statista

AR and VR have been redefining the gaming experience, offering immersive and interactive gameplay like never before. Games like Pokemon Go were many people’s first AR experience, but the industry has hugely advanced since then, largely thanks to the Metaverse.

Metaverse’s VR game Horizon Worlds and cross-platform VR game Rec Room are just two examples of the use of VR in games. Although less than 50% of the US population has heard of the former, the latter had over 7,000 simultaneous plays at one point in 2022.

Hardware constraints are still a significant challenge for VR and AR gaming. However, the technologies have enormous potential to make the gaming experience more interactive, opening up new horizons and revolutionizing how we play and engage with games.

Decoding the Game: Analysis and Insights

These statistics and insights into online gaming trends hold the key to the success of marketers and game developers. Let’s take a closer look at the implications of these online gaming stats and the surrounding challenges and opportunities.

The Implications of Online Gaming Statistics

Source: Statista

Gaming statistics can provide valuable insights into market trends and gamers’ evolving preferences, such as those related to gaming communities.

By analyzing stats about player demographics and revenue, gaming industry professionals can make informed decisions about game development and marketing. Understanding gaming statistics hence enables them to tailor their offerings to meet gamers’ demands, optimize user experiences, and tap into new markets.

Understanding Player Behavior & Shaping Gaming Strategies

Source: Statista

Diving into the behavior and preferences of players – both in gaming and non-gaming activities – can offer considerable insights. For example, 20% of immersive gamers in the US aged 18-34 consider the story to be the game’s most important element. On the other hand, US users aged 34-55 tend to favor escapist elements.

Taking these stats into account, among others, allows developers to make decisions about game mechanics, updates, and the game’s overall makeup. Given how many gamers engage with the social features of games, it can also help them make the best possible social tools to attract and retain players.

Leveraging Data for Personalized Gaming Experiences

The more data you have on the players, the more opportunities there are to offer personalized and customized in-game experiences. And by leveraging this data, you can tailor recommendations, challenges, and even character interactions to suit individual preferences. 

Personalization within a game increases player satisfaction and engagement and boosts long-term retention. When players feel like the game caters to their unique tastes, they’re more likely to stick around for the long haul.

The Evolving Landscape of In-Game Monetization

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The most common online gaming business model in 2023 is “Pay to Download.” However, many new and existing gamers (almost 50%) prefer an ad-support model, and the freemium free-to-play model is also very common. 

Other emerging business models include in-game purchases (which are particularly popular for mobile games) and subscription services.

There are also a lot of exciting crypto-gaming projects – you just have to see the Axie Infinity price prediction for 2023 to get a sense of the engagement in the sector. But whatever monetization strategy developers choose, they must pay close attention to how much interest users have in paying for what they have to offer.

Addressing Challenges & Seizing Opportunities

Many countries have gaming regulations related to age restrictions and gambling, among other aspects. These can present challenges to developers when entering new markets.

However, these challenges can be turned into opportunities. By adopting responsible gaming practices, like implementing clear age verification systems and offering parental controls, developers can build trust and foster transparency.

Key Takeaways

1. The revenue of the online gaming industry is projected to increase from $26.14 billion in 2023 to $32.56 billion in 2027.
2. In 2022, mobile gaming was the biggest online gaming segment, worth $103.5 billion in revenue.
3. In the US, the number of online gamers is expected to grow to 78.73 million by 2027.
4. Twitch has over 7.25 million active streamers today, with user Ironmouse having the most subscribers.
5. 20% of immersive gamers in the US aged 18-34 consider the story to be a game’s most important element.

The Future of Online Gaming

As we take a close look at the 1.1 billion online gamers worldwide, it’s clearly a huge market with big opportunities and big challenges, especially taking into account emerging technologies and changing consumer preferences.

With the role of communities taking a central stage in gaming and AR and VR becoming more prevalent, marketers must pay attention to players’ in-game behavior – both the behavior directly related to the game and behavior that’s entirely peripheral.

References

• 2020 Essential Facts About the Video Game Industry (The ESA)
• A Billion Dollar Game: The Rise of the Esports and Gaming Sector (LBBOnline)
• Cross-device gaming quality expectations on smartphone vs PC or console according to gamers (Statista)
• Distribution of video gamers in the United States in 2022, by age group (Statista)
• Games market revenue worldwide in 2022, by device (Statista)
• Gaming monetization – Statistics & Facts (Statista)
• Gender distribution of global gaming audiences as of 4th quarter 2020, by device (Statista)
• Highest grossing mobile games worldwide in 2022 (Statista)
• IronMouse Subscribers (TwitchTracker)
• Leading gaming markets worldwide in 2022, by gaming revenue (Statista)
• Monetization preferences of mobile games according to existing gamers in selected countries (Statista)
• Monthly number of peak concurrent players of Rec Room on Steam worldwide from January 2020 to February 2023 (Statista)
• Most attractive elements of new immersive games according to gamers in the United States (Statista)
• Most common gaming business models used by game developers worldwide in 2023 (Statista)
• Most followed games on Twitch worldwide as of June 2023 (Statista)
• Most popular games on Twitch in June 2023, by peak viewers (Statista)
• Most popular YouTube gaming channels as of June 2023, ranked by number of subscribers (Statista)
• Number of active streamers on Twitch worldwide from January 2018 to April 2023 (Statista)
• Online Games – Worldwide (Statista)
• PC & Console Gaming Report 2023 (NewZoo)
• PC & Console Gaming Report 2023 | Free market and industry report (NewZoo)
• Personalizing The Player Experience: The Future Of Online Gaming (CGMagazine)
• Revenue of the mobile games industry Worldwide 2017-2027 (Statista)
• Revenue of the online games industry Worldwide 2017-2027 (Statista)
• Share of games market revenue worldwide in 2022, by segment (Statista)
• Twitch Statistics & Charts (TwitchTracker)
• Twitch Watch Time Statistics (TwitchTracker)
• Video gaming and the metaverse – Statistics & Facts (Statista)
• Virtual reality (VR) gaming revenue worldwide from 2019 to 2024 (Statista)