Press release
Artificial Intelligence (AI) In Video Games Market Expansion Continues, with Forecast Valuation of $8.18 Billion by 2029
Artificial Intelligence (AI) In Video Games
What Is the Expected CAGR for the Artificial Intelligence (AI) In Video Games Market Through 2025?
The market size for artificial intelligence (AI) in video games has witnessed significant expansion recently. The market, currently worth $2.24 billion in 2024, is projected to grow to a substantial $2.88 billion in 2025, with a compound annual growth rate (CAGR) of 28.6%. Factors such as the development of 3D graphics, evolution in game design, increasing demand for realism and a fully immersive experience, progression in machine learning, and the burgeoning field of multiplayer gaming have primarily contributed to the growth experienced during the historic period.
What's the Projected Size of the Global Artificial Intelligence (AI) In Video Games Market by 2029?
The market size for artificial intelligence (AI) in video games predicts an impressive surge in the upcoming years. With a compound annual growth rate of 29.8%, it is projected to reach $8.18 billion by 2029. The forecasted growth can be pegged to the enhancement of player analytics, the advent of virtual and augmented reality gaming, the burgeoning mobile gaming market, the emergence of cloud gaming, and the development of player analytics. Key trends for the forecast period encompass AI-enabled personalized experiences, incorporation of AI into game creation tools, the rise of AI-generated content, the spread of AI-powered virtual assistants, and the heightened realism provided by AI-created graphics.
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Top Growth Drivers in the Artificial Intelligence (AI) In Video Games Industry: What's Accelerating the Market?
The artificial intelligence (AI) in video games market is projected to grow rapidly as the use of smartphones becomes more pervasive. Smartphones, which combine phone services, computing power, and internet access in a handheld device, have seen their popularity surge due to lower cost, technological improvements, and a rising demand for various applications and connected services. The increasing use of smartphones has fuelled the incorporation of AI in video games, enhancing user interactivity, offering personalized content suggestions, and providing adaptive game elements. This enables the creation of more realistic characters, dynamic environments, and sophisticated gaming situations by game developers with advanced AI algorithms. For example, in February 2023, Uswitch Limited, a UK-based company providing price comparison and switching services, reported that mobile connections in the UK had risen to 71.8 million, an increase of approximately 2.6 million or 3.8% from 2021. The UK population is projected to rise to 68.3 million by 2025, with smartphone ownership expected to reach around 65 million individuals or 95% of the population. Consequently, the proliferation of smartphones is fuelling the growth of the AI in video games market.
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What Trends Will Shape the Artificial Intelligence (AI) In Video Games Market Through 2029 and Beyond?
Leading entities in the AI in video games sector are harnessing revolutionary technologies like cross-platform AI integration to improve their offerings with superior features. Such integration employs AI technology to provide coherent and consistent experiences across numerous gaming platforms. This includes using AI to refine user interfaces, generate platform-specific codes, and support real-time data streaming, empowering developers to generate and sustain applications for multiple platforms at once. Thus, enriching gaming experiences through cross-platform AI integration. For example, in June 2023, Yahaha Studios Oy Limited, a game-creation firm based in Finland, introduced a co-creation tool powered by artificial intelligence for cross-platform use, allowing developers to build no-code titles swiftly with AI'S supportive acceleration. The main goal is to incorporate user-generated content (UGC) smoothly across numerous platforms such as mobile, PC, Mac, among others. This platform comes with cutting-edge features like an uncomplicated interface, simple functionality, robustness, and interactivity that enhances game development efficiency and user experience.
What Are the Main Segments in the Artificial Intelligence (AI) In Video Games Market?
The artificial intelligence (ai) in video gamesmarket 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 Top Companies are Driving Growth in the Artificial Intelligence (AI) In Video Games Market?
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 Will Dominate the Artificial Intelligence (AI) In Video Games Market Through 2029?
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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