Games are becoming more and more online and, as of 2016, the digital game market is projected to be worth more than $9 billion, according to a report released today by the Entertainment Software Association.
While the report says that digital games have already overtaken physical games as the largest revenue source for video game companies, the report also notes that games are also growing more and greater in their appeal and appeal continues to grow.
While sales of digital games are on track to hit $10 billion by 2022, according the report, that growth will only accelerate if the market continues to increase in value.
“Digital game sales are projected to hit a record $10.7 billion by the end of 2021, according a recent report by The NPD Group, which projects that the digital market will grow to $8.3 billion by 2020,” the report states.
“While sales of physical games are expected to be less than $10 million in 2021, the growth in the digital world is predicted to be even higher.”
The report predicts that digital game sales will grow at a compound annual rate of 2.2% from 2021 to 2022, while physical games will continue to shrink.
In total, the Entertainment Technology Association expects that digital gaming will grow by 8.3% in 2021 compared to 2020.
The report says there is a high potential for games to surpass physical games within the next three to five years.
“It is not difficult to see how games will surpass physical products in their popularity,” the study states.
Digital games are a growing category, with the report noting that “the number of games in the marketplace has more than doubled in the past three years.”
The games industry has grown by an estimated $2.3 trillion over the past decade, with over 90% of that growth coming from digital games, according TOEFL scores, while the average price of a game is now $14.99.
“The growing popularity of games, and the increasing appeal of online play, are the main drivers behind the continued growth of the industry,” said Todd Karp, vice president of research and analysis at the Entertainment Industry Association.
“These companies have invested in new features that allow players to connect to other gamers, to share their progress, and to get closer to their friends, and they are also leveraging their technology to connect players with friends in real-time.
These innovations are bringing new life to many online game experiences and helping drive more gamers into the game.”
For more on the report on digital game growth, see our interactive map.
To learn more about digital games and the growing importance of online gaming, see the interactive map below: