Analyst group Research and Markets has announced released its latest report on the state of the global gaming market, forecasting a CGAR (compound annual growth rate) of 6.42%.
This forecast puts them ahead of PwC’s own expectations, released last year, which expect the industry to reach a CAGR of 4.8% during the next four years.
Commenting on the report, an analyst from the research team cited the increased penetration of VR headsets as one the industry’s biggest trends.
They say “the gaming market is among the fastest-growing markets in terms of the incorporation of advanced technologies. The increased adoption of virtual reality (VR) headsets is an emerging trend in the global gaming market. VR provides a simulated environment with the closest real-life experience of all devices through VR hardware and software. VR uses synchronized sound and sight with data suites through VR sensor-enabled headsets. This has increased the number of gamers who prefer VR over traditional gaming devices.”
They expect that these factors will increase the penetration of VR headsets from 4% to 12% by 2020.
Growth in the global e-sports market is said to be another major trend changing the landscape of the industry.
Research and Markets say that eSports “has an ever increasing viewership with growing popularity as e-sports creates an environment for viewers to experience playing the game. e-sports on a large scale is considered to be one of the most popular sports entertainment events in the world.”
However, the growth driven by both VR and eSports may be threatened by the impact of widespread software piracy.
The report asserts that “piracy is a major threat to the digital content industry. File sharing, copying, and downloading from illegal online sources are major challenges for content providers. They reduce the revenue of the industry, especially digital and packaged gaming. Despite the presence of the freeware model or free-to-play games that allow users to download game applications free of cost, gamers continue to install pirated versions of paid software to play games that have not yet released in the respective regions. Piracy not only affects the revenue of vendors but also has an impact on their sustainability in the global gaming market.”