Artificial Intelligence (AI) In Games Market: Major Trends Reshaping the Future of the Industry

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What Will the Artificial Intelligence (AI) In Games Industry Market Size Be by 2025?
The market size for artificial intelligence (AI) in games has seen swift expansion in the recent past. The growth projections forecast it to rise from $2.44 billion in 2024 to $2.89 billion in 2025, indicating a compound annual growth rate (CAGR) of 18.8%. Factors that contributed to this growth during the historical period include the continuous evolution in game design, the growing impact of AI research, the popularity of open-world games, and the rising demand for competitive gaming.

What's the Long-Term Growth Forecast for the Artificial Intelligence (AI) In Games Market Size Through 2029?
In the coming years, a significant surge is anticipated in the market size of artificial intelligence (AI) in games, increasing to $5.75 billion by the year 2029 at an 18.7% compounded annual growth rate (CAGR). Reasons for this anticipated growth during the forecast period can be attributed to the rise in inclusive and accessible gaming, indie game development's expansion, esports and competitive gaming's swift growth, AI's integration in game design tools, and an increased emphasis on personalization and gamer engagement. Key trends in the forecast period are poised to be content moderation driven by AI, AI-enabled voice assistants, content created by AI, improved multiplayer experiences, and emotionally intuitive non-player characters (NPCs).

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What Are the Key Growth Drivers Fueling the Artificial Intelligence (AI) In Games Market Expansion?
The surge in mobile and online gaming popularity is set to stimulate the expansion of artificial intelligence (AI) in the game market. This kind of gaming involves engaging in video games via mobile hardware like smartphones and tablets, or via online platforms. In a bid to capture player's interest and expand their reach, developers are continuously advancing the boundaries with novel game designs, engaging storytelling, and immersive visuals. The creation of AI in games offers extensive datasets for training algorithms, allowing AI systems to learn and upgrade through engaging with diverse player behaviors and preferences. For example, as per the London Economic, a non-governmental organization located in the UK, there was a rise in the number of active online gamblers in the UK to 24.7 million in July 2023, which was a 6.2% increase from the previous year. That year, the online gambling* sector reported record-breaking revenues of $6.75 billion (£5.4 billion). Thus, the increasing lure of mobile and online gaming experiences is fueling the growth of artificial intelligence (AI) in the games market.

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What Are the Key Trends Driving Artificial Intelligence (AI) In Games Market Growth?
Leading firms in the artificial intelligence (AI) for games market, such as AI-based non-player characters (NPCs), are implementing state-of-the-art technologies to enhance their services with cutting-edge features. These AI-driven characters add a dynamic and interactive element to video games and simulations. As an example, Replica Studios, an AI-software organization based in Australia, introduced intelligent non-player characters (NPCs) driven by AI for unreal engines in May 2023. These characters can be equipped with either OpenAI or users' custom AI language models. The system capitalizes on Replica's vast collection of over 120 ethically sourced AI voices, offering game developers the means to accelerate the game-making process and concoct innovative, evolving gaming experiences.

How Is the Artificial Intelligence (AI) In Games Market Segmented?
The artificial intelligence (AI) in games market covered in this report is segmented -

1) By Component: Software, Hardware
2) By Technology: Machine Learning, Natural Language Processing, Computer Vision, Gesture Control, Other Technologies
3) By Genre: Action, Adventure, Puzzle, Simulation, Role-Playing, Other Genres
4) By Application: PC Gaming, TV Gaming, Smartphone And Tablet Gaming

Subsegments:
1) By Software: Game AI Engines, Machine Learning Algorithms, Natural Language Processing (NLP) Tools, Physics Simulation Software
2) By Hardware: Graphics Processing Units (GPUs), Central Processing Units (CPUs), Game Consoles, Cloud Computing Infrastructure

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Which Companies Are Leading the Charge in Artificial Intelligence (AI) In Games Market Innovation?
Major companies operating in the artificial intelligence (AI) in games market are Google LLC, Microsoft Corp., Tencent Holdings Ltd., Sony Group Corp., NVIDIA Corp., Baidu Inc., Nintendo Co. Ltd., NetEase Inc., Vivendi, Activision Blizzard, Electronic Arts Inc., Take Two Interactive Software Inc., Playtika, Square Enix, Konami Group Corp., NCSoft, Unity Software Inc., Capcom Co. Ltd., Behaviour Interactive Inc., Side Effects Software Inc., Quantic Dream, Charisma Entertainment Ltd., Ubisoft Entertainment SA, AI21 Labs, Insomniac Games, Crytek GmbH, PrometheanAI Inc., COGNOSPHERE PTE. LTD., Theai Inc., kashbet

Which Regions Are Leading the Global Artificial Intelligence (AI) In Games Market in Revenue?
North America was the largest region in the artificial intelligence (AI) in games market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in games market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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