Gaming Hardware Market Size, Share & Segmentation, by Type (Gaming Consoles, Gaming Accessories), by End User (Commercial Gaming Hardware, Residential Gaming Hardware), by Region, and Global Forecast for 2024-2032

Gaming Hardware Market Size & Overview

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The Gaming Hardware Market Size was valued at USD 36.2 Billion in 2023 and is expected to grow to USD 63.86 Billion by 2032 and grow at a CAGR of 6.51% over the forecast period of 2024-2032.

The gaming hardware market has seen rapid growth due to increasing internet penetration and the rise of esports across key regions. Advanced multiplayer games, backed by significant public coverage and high sponsorship, are pushing gamers to invest in high-end consoles and peripherals as professional esports teams recruit players. Games with superfast frame rates and the integration of the Internet of Things (IoT) in gaming are also driving demand for premium hardware, creating new excitement among gamers. Furthermore, the desire for realistic gaming experiences, alongside advanced consoles like the PlayStation 4 Pro and Xbox One X with enhanced features, is opening up new opportunities in the global gaming market. Key components of this market include gaming consoles, high-performance PCs, laptops, graphics cards, and peripherals such as gaming keyboards, mice, and headsets. The rise in content creation and streaming has further fueled the demand for high-performance hardware. However, supply chain challenges and semiconductor shortages have created constraints, impacting both production and pricing dynamics.

The global PC-based gaming hardware market is experiencing a shift in spending patterns, with a notable decrease in consumer purchases of high-end gaming components. This trend is driven by several factors, including changing consumer priorities and increased spending on business and prosumer workstations used for demanding applications such as 3D design, rather than for gaming. While overall PC CPU shipments have seen an uptick, the market for desktop graphics cards and add-in boards has declined, largely due to their high average selling prices (ASP). As graphics cards heavily influence the ASP of gaming PCs, this shift has led to a downturn in the gaming hardware segment, especially in the first half of the year. However, market analysts remain optimistic about a rebound in the latter half of the year, as this period typically aligns with higher consumer spending on gaming hardware due to seasonal demand.

The purchasing intent of consumers plays a key role in shaping market dynamics, particularly the "Gaming Influence Factor," which tracks hardware bought specifically for gaming purposes. In 2024, this intent has seen a temporary decline as consumers opt for systems capable of both gaming and professional applications. According to data from the U.S. Department of Commerce, consumer spending on gaming hardware was projected to grow at a rate of 5.2% annually over the next few years. Furthermore, the Entertainment Software Association (ESA) reported that over 75% of American households now have at least one gamer, indicating a substantial market for gaming products. Nevertheless, the gaming hardware market is expected to recover by 2025, as discretionary spending increases and more systems are purchased with gaming as the primary focus. Over the next few years, the market is projected to grow steadily, driven by continued advancements in gaming technology, such as improved CPUs, GPUs, and displays, as well as increasing demand for immersive experiences. As new gaming titles emerge and the popularity of esports and streaming platforms continues to rise, the demand for high-performance gaming hardware is likely to regain momentum, bolstering market growth.

The gaming hardware market in the United States and Europe has undergone a considerable change, now being 30% to 50% bigger than before the pandemic. Sales of gaming PCs and accessories reached record levels during the pandemic due to increased remote work and demand for entertainment. Nevertheless, with the adaptation to the new post-pandemic environment, numerous businesses have communicated struggles with their finances. In spite of these changes, one major company has stood out as a successful example, demonstrating a significant rise in the need for its various gaming items like RGB fans, AIO coolers, keyboards, gaming chairs, and complete PC systems. The company's earnings are split between two main sectors: Gaming Components and Systems, and Gamer and Creator Peripherals. The second part has demonstrated a stronger profit margin and is projected to keep expanding as customers look for more immersive experiences and advanced features. In the future, the company aims to launch new products in 2024, including sim racing and mobile controllers. Nonetheless, there is no anticipation of significant enhancements in the gaming hardware sector until approximately 2025, when a sharp increase in the need for new GPUs is projected. This strategic position shows how the gaming hardware market continues to evolve and stay strong in response to changing consumer preferences and technological advancements, showcasing the industry's innovation and ability to adapt to new trends.

Gaming Hardware Market Dynamics

Drivers

• Expanding Horizons Through Live Streaming of Multiplayer Gaming Events

Gaming has evolved from a niche pastime to a global entertainment phenomenon. With approximately 3.1 billion gamers worldwide in 2020 and an anticipated increase of 500 million by 2024, nearly half of the global population of 7.7 billion is engaging with video games. In 2021, the industry generated revenues of $175 billion, surpassing the combined earnings of movies, music, and books. Advancements in artificial intelligence and machine learning are driving the gaming sector to new heights, enhancing everything from network efficiency to player matchmaking. These technologies play a crucial role in nurturing new gamers, discouraging toxic behavior, optimizing monetization strategies, and creating expansive environments for players. A significant trend is the rise of live streaming for multiplayer gaming events, which has cultivated a devoted fan base and created a new generation of content consumers. This shift to live and recorded video game streaming necessitates advanced gaming hardware, such as high-quality speakers, responsive joysticks, motion controllers, and robust consoles. The increasing demand for such equipment is vital in supporting these large-scale streaming events, further propelling the growth of the gaming hardware market.

• The Rise of Cloud-Based Gaming Driving Hardware Advancements.

The market for cloud-streamed gaming is experiencing strong growth, fueled by improved availability and adaptability to meet the needs of a variety of gaming audiences. This phenomenon is particularly noteworthy in developing countries in Latin America, the Middle East and Africa (MEA), and certain parts of Europe, where mobile devices are increasingly becoming the main choice for gaming activities. As stated by IDC's Worldwide Quarterly Gaming Tracker®, cloud-streamed gaming revenue remains strong even with the closure of platforms like Stadia, showing high demand for convenient gaming options. The rise in demand is pushing gamers to look for powerful hardware that can handle advanced streaming features. As gamers shift to cloud services, the need for strong PCs, high-quality monitors, and effective networking gear increases, as these are crucial for providing seamless, lag-free gaming experiences. Additionally, the rise of distinct and varied gaming titles offered on cloud platforms motivates users to enhance their devices for the best possible performance. The link between the rise of cloud-based gaming and the demand for high-end gaming equipment showcases how the gaming industry constantly evolves through technological advancements that improve the gaming experience.

Restraints

• The expensive gaming hardware is hindering the growth of the market.

Although gaming provides many opportunities in different sectors, the expensive equipment and hardware continue to prevent many consumers from fully participating. The shortage of semiconductor chips essential for operating gaming laptops and consoles has worsened in various regions, adding to the challenge. Moreover, certain nations are still struggling with the economic aftermath of the pandemic, which is limiting their capacity to invest in gaming technology. In November 2021, Nintendo Co. Ltd., a major player in the gaming sector, revealed that the worldwide chip shortage compelled the company to reduce its sales projections for the Switch console, potentially hindering gaming hardware advancement. As a reaction, Nintendo is actively trying to replace components to lessen the impact of the chip shortage, modifying current designs to sustain production rates. This scenario emphasizes the double difficulty of expensive expenses and supply chain interruptions, which hinder customer access to cutting-edge gaming technologies and also affect manufacturers' capacity to create new products and meet market needs efficiently.

Segment Analysis of Gaming Hardware Market

by Type

In the gaming hardware market, gaming consoles have become the top segment, obtaining a significant 59.44% of the revenue in 2023. Continuous advancements in console technology, coupled with a strong lineup of exclusive games, are the reasons behind this dominant position. Key industry contenders, like Sony and Microsoft, have played a major role in fueling this expansion by releasing their most recent console editions. The PlayStation 5 by Sony, which came out in late 2020, has revolutionized the gaming industry with its cutting-edge hardware, such as a customized SSD for quicker load speeds and improved graphics performance. Microsoft has made significant progress with the Xbox Series X by incorporating robust hardware and services such as Xbox Game Pass, offering subscribers a wide selection of games. Moreover, there is a growing emphasis on cross-platform compatibility among businesses, enabling users to have a cohesive experience on all devices. The increase in popularity of cloud gaming services, which allow gamers to stream games directly to their consoles, enhances the attractiveness of gaming consoles even more. Therefore, the gaming console industry is ready for sustained expansion, fueled by constant improvements in products and a growing gaming ecosystem that enhances the player's experience.

by End User

In 2023, residential gaming hardware remains the leading segment in the gaming hardware market, with a significant 59.56% share. This upsurge is a result of more gamers looking for immersive and high-quality gaming experiences while staying at home. Large corporations have met this need by introducing new and creative products tailored for home gamers. Nvidia's launch of the GeForce RTX 4000 series GPUs has transformed gaming performance through cutting-edge ray tracing tech and AI-driven features, making them top picks for premium gaming setups. Furthermore, Corsair and Razer have also released various accessories such as mechanical keyboards and gaming mice tailored to improve the gaming experience at home. The growth of online gaming platforms and membership services like Xbox Game Pass and PlayStation Plus has prompted more gamers to enhance their home setups. Additionally, the increase in popularity of social gaming and streaming platforms has encouraged home gamers to enhance their hardware for improved performance and visuals. Due to ongoing product innovations and changes in home entertainment, the residential gaming hardware segment is set to continue growing.

Regional Outlook of Gaming Hardware Industry

by 2023, North America has established itself as the gaming hardware market's top revenue-generating region, comprising 34.44% of the overall share. The strong influence comes from a thriving gaming community, advances in technology, and major investments from top gaming firms. Key companies like Nvidia and AMD have introduced advanced graphics cards, like the GeForce RTX 40 series and Radeon RX 7000 series, improving gaming with ray tracing and AI features. Furthermore, Sony and Microsoft have continued to push the boundaries with the PlayStation 5 and Xbox Series X consoles, providing top-notch performance and exclusive games that have further increased hardware sales. The growth of esports in the area has led to a higher need for top-quality gaming systems, causing local businesses to invest in dedicated gaming gear. Nations such as the United States and Canada lead this expansion, due to robust internet infrastructure and a sizable community of passionate gamers. As innovation flourishes in North America and consumer engagement improves, the gaming hardware market is forecasted to grow, solidifying its leading role worldwide.

In 2023, the Asia-Pacific region has emerged as the fastest-growing market for gaming hardware, driven by a surge in gaming popularity, rapid technological advancements, and an expanding middle class with disposable income. Countries such as China, Japan, and South Korea are leading this growth, fueled by a vibrant gaming culture and a large population of gamers. The increasing adoption of smartphones and high-speed internet has facilitated the rise of mobile gaming, prompting companies to launch innovative gaming hardware tailored to mobile users. Notable product releases include Tencent's new cloud gaming platform and Sony's expansion of PlayStation services in Asia, catering to the growing demand for high-quality gaming experiences. Additionally, Nvidia and AMD have introduced state-of-the-art graphics cards and gaming accessories, making high-performance gaming more accessible to a broader audience. The rise of esports in the region is further propelling the demand for specialized gaming hardware, with countries investing in gaming infrastructure and hosting international tournaments. As the Asia-Pacific region continues to innovate and attract investment, it is poised to capture an increasingly larger share of the global gaming hardware market in the coming years.

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Key Players

Here’s a list of key players in the gaming hardware market, along with notable products from some of them:

• Microsoft Corporation (Xbox Series X/S)

• Nintendo Co., Ltd. (Nintendo Switch)

• NVIDIA Corporation (GeForce RTX Series)

• Sony Corporation (PlayStation 5)

• Logitech International S.A. (Logitech G Pro Gaming Headset)

• Venom UK Ltd. (Venom Rechargeable Battery Pack)

• Oculus VR (Oculus Quest 2)

• Linden Research (Second Life - Virtual Reality)

• Sega Games (Sega Genesis Mini)

• Corsair Gaming, Inc. (Corsair K100 RGB Mechanical Gaming Keyboard)

• Razer Inc. (Razer Blade Gaming Laptops)

• Alienware (Dell Technologies) (Alienware Aurora Gaming Desktops)

• ASUS (ROG Zephyrus Gaming Laptops)

• Acer (Predator Gaming Monitors)

• HP Inc. (Omen Gaming PCs)

• SteelSeries (SteelSeries Arctis 7 Gaming Headset)

• Others

Recent Development

• For 2024, the gaming landscape is set for exciting developments as the PlayStation 5 and Xbox Series X remain the preferred consoles for living rooms. Anticipation is building for new, updated models from Sony and Microsoft, as well as potentially new entrants in the market. These next-generation consoles are expected to feature significantly enhanced CPUs and GPUs, enabling capabilities like faster frame rates and 4K gaming, with the possibility of 8K becoming the new standard

• March 2023: Microsoft collaborated with cloud gaming service provider Boosteroid to increase the number of games available to consumers worldwide.

• February 20, 2023: Microsoft and NVIDIA announced a 10-year deal to provide Xbox PC titles to the over 25 million NVIDIA users. The GeForce NOWTM cloud gaming service is accessible in over 100 countries. The collaboration will bring popular Xbox titles from Activision, such as Call of Duty and Minecraft, to the NVIDIA GeForce NOW cloud gaming service.