What will the game industry look like over the next 5 years?

The value of the global toy and game market in 2018 was estimated at 101.5 billion dollars (compare with Iran's 60 billion dollars of oil-export revenue in 2018). Research indicates that the future of the game industry through 2025 will be accompanied by a compound annual growth rate of 4.6 percent. Commercializing popular movies, including Spider-Man, Iron Man, Superman and Doraemon, is the most important strategy toy makers use to attract children. Rising net income also plays an important role in the market's growth.

Marvel characters have always been targets of the game and entertainment industry.

Factors affecting the growth of the game and toy industry

Many children like to play video games in their leisure time. The introduction of technological innovations such as AR/VR headsets has led to increased use of video games by children. The production of educational games encourages adults and parents to buy these games and thus also has a positive effect on market growth. Asia-Pacific countries, including China and Taiwan, are the leaders in toy and game exports worldwide. In addition, there are large toy and game factories in Thailand and Japan that produce cheap, easy-to-use products and export them to various countries.

Asia-Pacific countries, including China and Taiwan, are the leaders in toy and game exports worldwide. In addition, there are large toy and game factories in Thailand and Japan that produce cheap, easy-to-use products and export them to various countries.

Rising birth rates alongside rising incomes have created an opportunity for growth in the global game and toy market. The growing popularity of games such as FIFA, PUBG and Counter-Strike among young people and adults will stimulate the market in the coming years. An increase in the number of video game tournaments and higher sales of these games will affect market growth in the coming years. An increase in the number of players in developed countries will also lead to growth in demand for games in the future.

For example, Sony has released a PlayStation Classic edition alongside a preload (unofficial) edition, which has itself driven growth in the video game market. Increased use of smartphones that can run video games will lead to market growth in the coming years. According to a survey in 2018, PUBG had become one of the largest video game apps, generating the highest revenue worldwide. Increased use of tablets and laptops has also boosted market growth.

PUBG, which has become very popular in recent years

Video games will likely experience an annual growth rate of 6.3 percent over this period. In recent years, players have been able to play games such as Star Wars online, which has in turn driven market growth. Advances in technology together with increased use of software such as AI processors and the Internet of Things have improved the quality of games and, as a result, attracted many customers. Video game producers use software such as Deluxe and Nintendo, which have been used in games such as Super Mario Bros (Qarch-khor), Infinity War and Activision, and the Resident Evil series.

In recent years, players have been able to play games such as Star Wars online, which has in turn driven market growth

The link between games and sport

In 2018, 17.5 percent of total revenue belonged to sports and outdoor activities. Growing awareness among parents of the benefits of outdoor activity will increase the opportunity for growth in outdoor sports and related toys. Outdoor sports activities increase children's activity and help them build physical endurance and fitness. In addition, physical activity improves health and spreads a sense of well-being, because these activities increase muscle strength, improve the body's immunity and reduce the risk of obesity and heart disease.

Who are the players in the game industry?

The regular users of toys and games are adolescents aged 15 and above. This segment of users generated 31.83 billion dollars of revenue for the market in 2018. Rising demand for the production of action figures and video games is one of the important factors of growth in the future of the game industry. For example, according to a survey, 77.63 percent of customers aged 18 to 29 said they had at some point bought a game/toy from stores, and most of them had also bought video games and other outdoor games. Increased use of smartphones has created a new opportunity for makers. This could be a reason for growth in the global market.

  Increased use of smartphones has created a new opportunity for makers. This could be a reason for growth in the global market.

 

The zero-to-8 age group is expected to see the fastest growth over the forecast period. The growing popularity of cartoon characters has raised demand in the zero-to-8 age group. Comics such as Spider-Man, Doraemon and Superman have become popular through television shows and movies, and the introduction of games related to them plays a key role in the industry's growth.

At the end of this first part of the review of the future of the game industry, Namafar invites you to view statistics on the game industry in Iran and the world here.