The online gaming industry turns virtual adventures into real-world passions.
The popularity of mobile gaming is skyrocketing, the esports sector is growing, and the high-speed Internet is becoming more accessible… Fueled by these drivers, the online gaming industry is soaring, with its market size projected to reach a staggering $147.9B by 2032.
It all gives rise to abundant opportunities within the sector:
Not only opportunities are waiting for you, but also challenges.
We provide fundraising assistance, manage M&A deals, and deliver strong market blueprints and persuasive pitch decks.
Explore our online gaming market research to find out useful insights on funding, market potential, and challenges.
2x growth
The online gaming market is forecasted to reach $147.9B by 2032, showcasing the 2X growth.
1.1B
Over 1.1 billion users play video games globally.
Mobile gaming accounts for over 50% of global online gaming revenue.
The global esports audience reached 532 million in 2022.
Of population globally was using the Internet in 2022.
Tech advances and a post-pandemic environment are leveling up the online gaming industry, sparkling numerous trends:
Mobile gaming: 5G technology will make playing mobile games easier and faster.
Cross-play gaming: playing online games using different platforms.
AR and VR tech: ensuring more immersive gaming experiences.
Cloud gaming: playing online games on any device without needing powerful graphics.
Blockchain gaming: playing games and earning money (cryptocurrencies and NFTs, to be more precise).
Eco-friendly gaming: adopting eco-friendly practices, from using sustainable materials to optimizing energy use.
Why it matters: knowing online gaming industry trends adds to startups’ competitive advantage and investor interest.
VENTURE LANDSCAPE
Key verticals:
In the world of online gaming, competition is tough, regulations are tight, and starting costs are high.
Rule number one: have deep pockets. As you need to invest in a talented team and marketing and advertising campaigns.
A case in point: the development of Call of Duty: Modern Warfare 2 cost around $250M, with $50M spent on development and the rest $200M on marketing.
Limited funds can cause:
A case in point: in 2023, Volition and Daedalic Entertainment bit the dust due to financial issues leading to tech bugs and a wave of negative customer reviews.
Prepare to adjust to ever-changing regulations.
A case in point: a 28% goods and services tax has been imposed on the online gaming sector. As a result:
Inability to adhere to all the existing online gaming regulations may lead to:
To address this challenge, online gaming startups should:
A cutthroat playground with over 3B online games is waiting for you. While it’s relatively easy to break into the market, rising above the competition and making a mark is a whole different ball game.
Gamers desire immersive, lifelike worlds with top-notch graphics, captivating content, and an outstanding gaming experience. And those failing to innovate risk to face adverse consequences.
A case in point: Babylon’s Fall—a live-service action role-playing game—faced a commercial downfall in 2023 due to its poor content, repetitive gameplay, and tech issues.
To gain a competitive advantage, online gaming startups need to:
Competitive nature, investors’ concerns about market saturation, and unpredictable success of gaming projects… All this influences the funding process.
If you fail to secure funds, be ready for:
Getting financial backing requires:
Large and growing market ($147.9 billion by 2032), global reach, diverse range of products (mobile games, PC games, esports, and console games), large customer base (over 1B gamers worldwide), and high potential for innovation (AR and VR) make the online gaming industry a tidbit for investors.
In 2023, the online gaming market size was $61.7B. It’s expected to double by 2032, growing annually at 10.2%. With such market size and investors’ interest, the online gaming sector has a huge potential for startups, from mobile gaming to tech advancements.
It may be challenging to attract investments in the online gaming industry owing to the current economic state, competition, and the general viability of the startup’s business plan.
To finish all these documents, our experts need around two to three weeks, in general. However, if the team has lots of tasks and the project is complex, it may take us up to one month. Contact us to discuss the timelines individually.
Most online gaming startups lack a persuasive investment storyline. Like this, venture capitalists don’t get the full picture and may shift their focus on a more promising and urgent project. Plus, the absence of a competition slide. It may be a sign of your not knowing how to outrun the rivals. In such a saturated market, competitive analysis comes first.
First of all, it’s a competition. Yes, the online gaming industry is highly competitive, and startups must be ready to face it. Second, it’s a highly regulated landscape with rules changing and being created all the time. Third, high initial prices, as developing a high-quality game may cost millions. Many companies focus on a specific niche, innovations, and effective marketing.
The online gaming market is fiercely competitive, with over 3 billion online games available. Moreover, the top dogs (Activision Blizzard, Electronic Arts, and Ubisoft) are trying to secure their dominance, while the number of new entrants is constantly growing (over 1K nowadays).
Our extensive investor package includes due diligence on online gaming projects, the creation of a comprehensive and visually rich online gaming pitch deck, and an impeccable fundraising game within the online gaming sector and beyond.
Sure! Our team of experts ensures pinpointing online gaming M&A opportunities, seamlessly guiding you through every step—from the initial deal search and valuations to comprehensive due diligence and post-deal collaboration.
Certainly! Our experts help you reach the relevant online gaming VCs. Plus, we evaluate your project based on such aspects as team composition, round size, and product, ensuring beneficial cooperation with investors from the initial meet-up to a post-deal collaboration.
Yes, we do! Our comprehensive online gaming market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.
Our specialists provide growth and fundraising support for online gaming startups, accompanying them from their initial Pre-Seed phase right up to Series C and further.
Whether you're looking for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design, Waveup is your one-stop shop for that and more. Leave your email, and let’s discuss your project!
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