New report says there will be 3.5 billion gamers globally by 2024
ABI Research released a report concluding that nearly half of the global expected population in 2024 will be gamers, a result that only furthers the case for telecommunications companies, ISPs and OEMs to take advantage of the huge potential gaming offers, especially as 5G makes cloud gaming more of a reality.
The report, commissioned by InterDigital, is called “Cloud gaming: Enabling a next generation gaming and streaming paradigm” and states that currently, more than 2.3 billion individuals play video games, making it among the largest entertainment industries in the world. And the number of gamers is only expected to grow substantially, reaching more than 3.5 billion gamers by 2024.
As the chart below indicates, the largest gaming base is the Asia-Pacific region with 51% of the worldwide total, and the Americas, at roughly 20% of the player base, represent the second largest revenue opportunity.
While it’s clear that gaming presents a solid business case for communication providers, InterDigital was careful to point out that to truly take advantage of this growing market opportunity, telecom companies, ISPs and OEMs must evaluate different business models to find success, and this evaluation, the company said, must be done early on.
“The cloud gaming market is rapidly growing, and it’s clear those who act now will capitalize on this opportunity. But these players need to act fast if they want to take advantage of everything this exciting market has to offer,” said Laurent Depersin, R&I senior lab director at InterDigital.
“As developments in 5G and Wi-Fi penetrate the mainstream, enabling more products and services to become gamified,” he continued, “we’ll see Gaming-as-a-Service (GaaS) really come to life — pulling in new gamers, and encouraging existing ones to make the transition to the cloud, thanks to its user friendly business model. For cloud gaming and GaaS to succeed, players need to ensure they deliver both the right business model and the right user experience to drive mainstream adoption.”
The report specifically looked at the benefit of over-the top media services, like online video streaming to bring games to gamers, commenting that because subscription plans can be monthly, quarterly or annual that are the most “most pragmatic and consumer-friendly option.”
Further, consumers tend to favor unlimited subscription plans over time-based payment plans, regardless of which method costs more in the long run.
The report also explore how advances in AR and VR are creating an environment in which game-like experiences extend beyond games. For instance, gaming elements like VR and AR can be added in the workplace for applications such as collaboration tools, machine maintenance and fitness applications. This ‘gamification’ of non-gaming activities will present a further opportunity for telecom and internet service providers in the near future.
