Artificial Intelligence (AI) In Video Games Market Expansion Continues, with Forecast Valuation of $8.29 Billion by 2029

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Artificial Intelligence (AI) In Video Games Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size for artificial intelligence (AI) in video games has experienced significant expansion in the past few years. It is projected to rise from $2.24 billion in 2024 to $2.9 billion in 2025, representing a compound annual growth rate (CAGR) of 29.5%. The historical growth of this market is linked to several factors including the introduction of 3D visuals, advances in game design innovation, the quest for more realism and immersive experiences, enhancements in machine learning, and the broadening of multiplayer gaming scope.

Artificial Intelligence (AI) In Video Games Market Size Forecast: What's the Projected Valuation by 2029?
The market for artificial intelligence (AI) used in video games is projected to experience substantial growth in the coming years, expanding to a whopping $8.29 billion by 2029 at a 30.0% compound annual growth rate (CAGR). This predicted growth during the forecast period is likely due to several factors such as increased use of player analytics, the advent of virtual and augmented reality gaming, a flourishing mobile gaming market, the growing prevalence of cloud gaming, and further expansion in player analytics. Anticipated trends for the same period encompass personalized experiences powered by artificial intelligence (AI), the incorporation of AI in game development tools, the introduction of AI-created content, growth of AI-controlled virtual assistants, and an improved sense of reality brought about by AI-produced graphics.

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What Are the Drivers Transforming the Artificial Intelligence (AI) In Video Games Market?
The surge in smartphone usage is predicted to boost the expansion of the artificial intelligence (AI) in video games market. Characterized by their advanced blending of telephony, computing, and internet functionalities, smartphones are handheld devices that are becoming increasingly prevalent due to greater affordability, technological improvements, and a surging demand for interconnected services and applications. The increased usage of smartphones facilitates the integration of AI in video games, ensuring improved user experiences, tailored content suggestions, and adaptive gaming components. Game creators can, therefore, utilize sophisticated AI algorithms to create realistic characters, dynamic settings, and complicated gaming situations. For instance, Uswitch Limited, a UK-based price comparison and switching service firm, reported in February 2023 that mobile connections in the UK totaled 71.8 million, marking an increase of roughly 2.6 million or 3.8% from 2021. The projected population of the UK for 2025 is 68.3 million, with an anticipated 95% (approximately 65 million people) predicted to own a smartphone. Consequently, the soaring penetration of smartphones is fueling the expansion of the artificial intelligence (AI) in video games market.

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What Long-Term Trends Will Define the Future of the Artificial Intelligence (AI) In Video Games Market?
Leading corporations in the AI in video games market are spearheading the development of cutting-edge technologies, such as integrating AI across different platforms, to accommodate their customers with more sophisticated features. This integration uses AI technology to offer a consistent and smoothly running experience on multiple gaming platforms, thereby aiding developers to create and manage applications for different platforms at the same time by optimizing user interfaces, generating platform-specific code, and supporting real-time data streaming using AI. The experiences of gamers are improved by the incorporation of AI across multiple platforms. As an example, Yahaha Studios Oy Limited, a company based in Finland that specializes in creating games, rolled out a co-creation tool compatible with multiple platforms and powered by AI in June 2023. This tool enables developers to produce titles that require no coding skills at an accelerated pace with AI assistance. The platform prioritizes the efficient integration of user-generated content (UGC) across a variety of platforms such as mobile, PC, Mac, etc. The platform presents superior features like a user-friendly interface, stable and intuitive functions, and interactivity. This ultimately enhances the efficiency in creating games and the user experience.

Which Segments in the Artificial Intelligence (AI) In Video Games Market Offer the Most Profit Potential?
The artificial intelligence (AI) in video games market covered in this report is segmented -

1) By Component: Hardware, Software, Service
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

Subsegments:
1) By Hardware: Graphics Processing Units (GPUs), Central Processing Units (CPUs), Game Consoles, Virtual Reality (VR) And Augmented Reality (AR) Devices
2) By Software: Game AI Engines, Machine Learning Frameworks, Natural Language Processing (NLP) Tools, Behavior Simulation Tools
3) By Service: Consulting Services, Game Development Services, Maintenance And Support Services, Cloud Gaming Services

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Which Firms Dominate the Artificial Intelligence (AI) In Video Games Market by Market Share and Revenue in 2025?
Major companies operating in the artificial intelligence (AI) in video games market are Microsoft Corporation, Tencent Holdings Limited, NVIDIA Corporation, Nintendo Co. Ltd., Teleperformance Nordic AB, Bandai Namco Entertainment Inc., Electronic Arts Inc., Square Enix Holdings Co. Ltd., Inworld AI Inc., Ubisoft Entertainment SA, Konami Holdings Corporation, Unity Technologies Inc., Rival Theory Inc., Eidos-Sherbrooke Inc., Google DeepMind Technologies Limited, Rockstar Games Inc., LeewayHertz Technologies Private Limited, SideFX Software Inc., Heroz Inc., Osmo, Leia Inc., Powder AI Inc., Titan AI Inc., Signality Inc., Latitude.io Inc., Markovate Inc., Bungie Inc., PrometheanAI Inc., DefinedCrowd Corporation, Martian Lawyers Club

Which Regions Offer the Highest Growth Potential in the Artificial Intelligence (AI) In Video Games Market?
North-America was the largest region in the artificial intelligence (AI) in video games market in 2024. The regions covered in the artificial intelligence (AI) in video games market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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