The growth of the global AI in video games market is driven by the emergence of high bandwidth network connectivity, upsurge in the penetration of smartphones, and the emergence of the 5G network. According to a report published by Allied Market Research, the global AI in video games industry generated $1084.96 million in 2022 and is anticipated to generate $11424.79 million by 2032, witnessing a CAGR of 26.8% from 2023 to 2032.
With the emergence of artificial intelligence (AI) technology, the gaming industry has been revolutionized. AI is widely used by game developers to enhance various aspects of game design and development.
Prime determinants of growth in the AI in video games market include increased processing power, emergence of high bandwidth network connectivity, upsurge in the penetration of smartphones, and the emergence of the 5G network. These factors, along with the continuous demand for 3D games, provide lucrative opportunities for market growth. However, factors such as an increase in complexity and lack of expertise may act as restraints for market growth.
The hardware segment held the highest market share in 2022, with gaming hardware manufacturers leveraging AI to offer innovative products. The software segment is projected to manifest the highest CAGR from 2023 to 2032, driven by advancements in AI-driven animation tools and the focus on delivering high-quality content and immersive experiences.
In terms of genre, the action segment maintained the highest market share in 2022, with AI-powered systems adjusting game difficulty based on player skill levels. The role playing segment is projected to have the highest CAGR, driven by AI-driven economies in role playing games.
North America dominated the market in 2022, with early adoption of AI technology. However, the Asia-Pacific region is expected to witness the fastest CAGR and likely dominate the market during the forecast period due to increasing investments in advanced technologies.
Key players in the market include Ubisoft, Google DeepMind, NVIDIA Corporation, and Electronic Arts Inc., among others. These players have adopted different strategies such as partnerships and product launches to increase market share.
In conclusion, the global AI in video games market is poised for significant growth driven by technological advancements and increasing demand for immersive gaming experiences. The market is expected to witness substantial opportunities for innovation and expansion in the coming years.
