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Why Online Gaming Is Becoming the New Growth Driver

Mahima Kalra
by Mahima Kalra
17 September 2020
in Business
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PC: https://inc42.com/

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The global gaming market is expected to hit a cumulative average growth rate of 12% by 2025.
Fortunately, the industry is still thriving in 2020, despite the world economic disruption caused
by the lockdown. Even better, online casino stocks are doing great, unlike their counterparts in
land-based establishments.

As the world economy continues struggling to recover from the effects of the global lockdown,
experts suggest that online gaming could be the new growth driver. Here’s why:

  1. The Rise Of Virtual Reality

While people have been talking about virtual reality for years, it’s now evident that it will be a
cornerstone piece in the future of the gaming industry. This year, players are expected to spend
around $4.5 billion on immersive gaming, which is 20 times more convenient and enjoyable than
traditional alternatives.

With the rise in demand for immersive games, companies like AltspaceVR and BigScreenVR are
investing heavily in this space today. That will help to accelerate the future of virtual reality
games sooner than most people might be expecting, thereby influencing growth in the market.

  1. Mobile Gaming

Though the growth in popularity and availability of gaming consoles is influencing growth in the
video game industry, a huge number of people still enjoy gaming on their smartphones.
Currently, mobile gaming accounts for almost half of the total gaming revenue collected from
online gaming, and the number is only rising.

The expansion of Chinese smartphone manufacturers offering affordable mobile phones on the
global market is also contributing to growth in mobile gaming.

  1. Rising Internet Penetration

The rise in internet penetration all over the world is driving demand in the online gaming market.
As a result, the number of people connected to the internet in an emerging market has grown
exponentially over the last few months.
Today, over a billion people worldwide are streaming games on the internet, according to the
data released by GlobalWebIndex. The latest numbers also indicate that almost 25% of the
internet users watch live streams of other players every month.

  1. Fantasy Sports and eSports Betting are Growing

While the global lockdown affected almost every industry, including sports and casinos, the
online betting industry managed to survive thanks to esports and fantasy sports betting. As such,
the demand for these betting markets has attracted more investments in the industry, thereby
driving the market growth.
According to industry experts, about a third of eSports fans in the US participate in different
amateur tournaments online. Even better, companies like Electronic Arts and Activision are
looking to improve market penetration in Europe and Asia due to the immersive potential of the
segment.

  1. Blockchain Technology

Blockchain technology promises great things for the growth of the gaming industry. Blockchains
offer useful tools for gamers to use in different situations, including decentralized asset
exchanges. For online gamers, blockchain technologies are also vital for anyone looking for
secure payment networks. Even better, online gamers can use blockchain to maintain their
anonymity in both competitive gaming and online betting activities.

Tags: CoronaCOVID-19Online Gaming
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