According to Midia Research, the global gaming industry is projected to grow to $236.9 billion by the year 2025

Industry forecasts suggest that the global gaming market will grow by 4.6% to reach $236.9 billion in 2026, and it's projected to hit $280.1 billion by 2031. According to Midia Research, with the International Monetary Fund predicting a global inflation rate of 4.2% for 2025, the gaming sector's growth remains relatively stable.

In the software domain, revenues are anticipated to grow by 4.4% to $203.2 billion in 2025. This increase is attributed to significant releases, including Grand Theft Auto 6 and new titles for the "Switch 2", such as Monster Hunter Wilds and Assassin's Creed Shadows. By 2031, the software revenue is expected to climb to $237 billion.

The PC software segment is forecasted to excel, with revenues climbing to $44.5 billion in 2025, surpassing the $41.6 billion of 2024. Console software revenue is projected to grow to $47.9 billion this year from last year's $45.1 billion, while the mobile segment is expected to rise to $110.9 billion in 2025 from $108.1 billion in 2024.

Hardware sales are predicted to increase by 8.4% reaching $20.6 billion, spurred by the launch of the Switch 2. This marks a recovery following a 19.9% decline in 2024, a year when Xbox faced challenges due to its strategy focusing on services and off-platform revenues, and the original Switch neared the end of its lifecycle. By 2031, hardware revenues might reach $24.6 billion.

A shift back to premium games is expected as the market sees a reduction in live-service game offerings. Consequently, in-game revenue is anticipated to fall to 67% by 2031. Despite this shift, consoles are likely to remain dominant for premium games, holding 60% of the market share compared to 38% for PCs.

Regarding multi-game subscription services, potential revenue gains might arise from price adjustments and new ad-based tiers, though the segment is considered mature. The inclusion of Call of Duty in Xbox Game Pass contributed to a 16% increase in 2024 subscription service revenues, totaling $11.8 billion, which could increase to $13.1 billion in 2025 and $18.5 billion by 2031.

The number of gamers worldwide is expected to reach 3.27 billion by 2025 and increase to 4.02 billion by 2031. The rise is supported by cross-entertainment experiences like HBO's The Last of Us and Amazon's Fallout adaptations. However, many new gamers are likely to emerge from developing regions such as Latin America, Southeast Asia, and Africa, driven by improvements in internet connectivity.

Rhys Elliot, a games analyst at Midia, commented that the gaming market faces tough conditions, pressing developers to innovate for success. Elliot emphasized the importance of retaining talent, citing Nintendo, FromSoftware, and Naughty Dog as examples of successful long-term employee investment. He advises against trends that waste resources, promoting innovation, and improved treatment of industry workers to grow the market effectively.

For more detailed insights, the full report can be accessed on Midia's website.