Game Engines Market is Estimated To Witness High Growth Owing To Trends in Emerging Technologies
The Game Engines Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A game engine is a software framework designed for the creation and development of video games. Game engines allow the developers to build games and experiences across many platforms. Game engines provide development tools in order to develop video games for consoles, mobile devices and personal computers. It streamlines the game development process by providing a blueprint for developing games and reusable code like 3D models, textures, physics and animation engines.
Market key trends:
The game engines market size is witnessing high growth owing to the increasing adoption of emerging technologies such as augmented reality (AR), virtual reality (VR) and artificial intelligence (AI).Game engines are upgrading their capabilities to integrate these advanced technologies, which is driving their demand. For instance, Unity Technologies recently unveiled augmented reality development kit and began rolling out features like artificial intelligence capabilities in response to growing demand. Integration of AR and AI technologies allow game developers to create breathtaking interactive experiences for customers. Such innovations are boosting growth of the global game engines market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as development of advanced 3D gaming engines require huge capital investments and technical skills. However, ease of development using available game engine softwares and presence of numerous indie game developers pose a moderate threat.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of numerous game engine software providers and buyers can switch between providers easily. Buyers can negotiate better deals and pricing.
Bargaining power of suppliers: The bargaining power of technology providers and developers is medium since game engine companies have alternatives.
Threat of new substitutes: The threat of substitutes is medium as new advanced technologies like real-time 3D, augmented reality and virtual reality can provide alternative game experiences.
Competitive rivalry: The competitive rivalry in the market is high among major players.
SWOT Analysis
Strength: Advanced features, frequent updates, strong developer community and easy to learn are key strengths. Revenue from asset store and royalties also provide recurring income streams.
Weakness: Heavy dependence on few big games titles, short game development life cycles, platform lock-ins and costs of frequent engine upgrades are weaknesses.
Opportunity: Growing mobile and AR/VR gaming sectors, geographic expansion and partnerships provide significant opportunities for players.
Threats: Entry of tech giants, open-source engines, regulatory uncertainties and recession impact are threats that can impact revenue growth.
Key Takeaways
The global Game Engines Market is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing popularity of mobile gaming and adoption of augmented reality and virtual reality technologies. The market size is estimated to reach US$ 12.3 Bn by 2030.
Regionally, North America dominated the game engines market in 2023 with over 30% share owing to strong growth of indie gaming studios in the US. Asia Pacific is projected to witness fastest growth during the forecast period led by growing middle class in countries like China and India increasing purchasing power of gamers.
Key players operating in the Game Engines Market are Unity Technologies, Epic Games, Chukong Technologies, Crytek, Valve, YoYo Games, The Game Creators, Marmalade Tech and Idea Fabrik. Unity Technologies and Epic Games hold majority market share with continuous enhancements to their game engine platforms and tools. New entrants are focusing on collaboration to develop engines compatible with emerging technologies.
Get more insights on this topic: https://www.newswirestats.com/game-engines-market-size-and-opportunity-analysis-2023-2030/
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