The global gaming market is expected to continue its recovery from post-pandemic stagnation, according to a recent report from Boston Consulting Group (BCG). The study, based on a survey of 2,972 respondents conducted in July 2025, projects that the market will reach $263 billion by the end of 2025.
Growth is anticipated to accelerate from 2026 through 2030, with a compound annual growth rate (CAGR) of 6 percent, compared to 4 percent in the 2022–2026 period. By 2030, the total market size could reach $353 billion. Mobile in-app purchases remain the largest source of revenue, while subscription services, cloud gaming, and streaming platforms are expected to see gradual growth. Console hardware sales, however, are projected to plateau over the same period.
BCG notes that differences in market size estimates compared to other research firms, such as Newzoo, stem from methodology, with BCG including hardware sales and advertising revenue in its calculations. Around 55 percent of respondents reported an increase in the amount of time they spend gaming over the previous six months, highlighting sustained engagement across regions.
Early Exposure and Lifelong Gaming Habits
Gaming habits start early and persist across generations. The survey found that 44 percent of children begin playing games before the age of five, with titles like Minecraft, Roblox, and the Super Mario series often serving as first games. Parents play a role in introducing their children to gaming, with 57 percent acknowledging their own involvement in early exposure.
Gaming continues into later life, with 40 percent of baby boomers and 50 percent of Gen X playing at least five hours per week. Console gaming remains the most frequently used platform for Gen Alpha, Gen Z, and millennials, while PC gaming maintains a higher average age among its users. Mobile gaming shows particular strength among older audiences, with more than half of baby boomers primarily using smartphones for gaming. The strong console presence in the survey is partly due to its focus on developed countries.
Cloud Gaming and Subscription Services: Adoption and Forecasts
Cloud gaming is gaining traction, with 27 percent of surveyed players reporting regular use. While 80 percent of those who tried cloud gaming reported satisfaction, only 8 percent primarily use cloud for the majority of their playtime. BCG projects that the number of cloud gaming users could rise from 5 million in 2025 to 65 million by 2030, while market value could increase from $1.4 billion to $18.3 billion, a 54 percent CAGR. Despite these projections, some analysts express skepticism, noting that similar forecasts from 2018 did not materialize.
Subscription services are expected to grow gradually, particularly among younger players who are more receptive to live-ops and recurring content. Older audiences tend to prefer one-time purchases over ongoing subscriptions, reflecting differences in gaming habits across generations.
Generative AI’s Role in Development
AI is becoming increasingly integrated into game development. As of August 2025, roughly 7,300 games on Steam mentioned AI use, representing 21 percent of projects in the third quarter. AI is primarily applied to asset and visual creation, but is also used for text, audio, UI/UX, and marketing materials. Developers cite concerns around audience reactions, cybersecurity risks, and legal implications, indicating that adoption is measured despite growing interest.
User-Generated Content and the Creator Economy
Interaction with user-generated content (UGC) remains uneven. Over 40 percent of players reported increased engagement with UGC over the past year, while nearly a third interacted less. Only 10 to 15 percent of players actively create content, with the remainder consuming it. Younger audiences are more likely to engage with UGC, reinforcing generational trends within the creator economy.
Alternative Distribution and Payment Methods
Purchasing directly from developer web stores is becoming more common. Around 33 percent of adults and 40 percent of teenagers have bought games this way, motivated by discounts, bonuses, and exclusive items. Security concerns and extra steps, such as re-entering payment details, continue to be barriers. BCG anticipates that transactions via Apple and Google app stores could decline to 67 percent by 2030, down from 90 percent in 2025, with average commissions dropping from 30 percent to 5 percent.
Pricing Trends and Monetization
Price remains a central factor in gaming decisions. Seventy-five percent of players report that cost strongly influences their choices, and 65 percent actively manage spending by waiting for discounts or focusing on select products. Free-to-play games continue to be cost-effective entertainment, and despite rising nominal prices, inflation-adjusted game costs have declined since their 2010 peak. Younger players are more likely to engage with subscriptions and live-ops models, while older players favor one-time purchases. In-game advertising is still limited, representing roughly 3 percent of total media ad spend, with slight growth expected by 2029.
Conclusion
The BCG report highlights steady growth in the global gaming market, driven by mobile in-app purchases, emerging platforms, and evolving monetization strategies. Cloud gaming and subscriptions are expected to expand, although adoption remains moderate. Generative AI, UGC, and alternative payment models are reshaping the industry, reflecting broader changes in technology and player behavior.
Source: BCG
Frequently Asked Questions (FAQs)
What is the projected size of the global gaming market by 2030?
BCG forecasts that the global gaming market will reach $353 billion by 2030, with mobile in-app purchases remaining the largest revenue segment.
How popular is cloud gaming in 2025?
Around 27 percent of players report regular cloud gaming use, though only 8 percent primarily rely on cloud for the majority of their playtime.
What role does AI play in game development?
AI is used in 21 percent of Steam games as of Q3 2025, primarily for asset creation, visuals, text, audio, and UI/UX, while developers remain cautious about audience reactions and legal risks.
Are subscriptions and live-ops games growing in popularity?
Younger players are more receptive to subscription and live-ops models, while older players tend to prefer one-time purchases.
How are alternative payment methods affecting the market?
Direct purchases from developer web stores are increasing, and BCG projects that by 2030, app store transactions will drop to 67 percent, with average commissions declining from 30 percent to 5 percent.
What is the trend in game pricing?
While nominal game prices have risen, inflation-adjusted costs are declining. Price remains a major factor in purchase decisions, especially among players who actively manage spending.
