The global Game Engines Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Game engines are specialized software applications that designers and developers use to develop games or virtual environments for various platforms such as PCs, mobiles, consoles, tablets among others. Game engines handle various aspects like audio, physics, animation, rendering and more. They act as a development environment for game developers to quickly design games and add new features to the existing games. Some key components of game engines include sound engine, graphics engine, physics engine, streaming engine and animation engine. Game engines deliver realistic visual and audio experience by supporting high-quality graphics, animation and sound. They save development time by providing reusable assets and tools for developers.
Market key trends:
One of the key trends in the game engines market size is the rising adoption of 3D game engines. 3D game engines offer more realistic gameplay experience with three-dimensional graphics. They support various 3D technologies such as Physically Based Rendering (PBR), Virtual Reality (VR) and Augmented Reality (AR). Popular 3D game engines include Unity, Unreal Engine and CryEngine. Another major trend is the increasing number of real-time strategy and multiplayer online battle arena games. RTS and MOBA games have seen tremendous success in recent years due to their competitive and team-oriented gameplay. Game engines optimized for these game genres support various network features and multiplayer capabilities. Game engines are also enabling development of advanced application beyond gaming like architecture visualization, product design, medical training among others due to their simulation and graphics capabilities.
Threat of new entrants: The threat is moderate as game engine market requires high initial investments and established industry player dominance making difficulties for new entrants.
Bargaining power of buyers: Buyers have high bargaining power as there are many game engine options available and customers can switch between various engines easily.
Bargaining power of suppliers: Suppliers have low bargaining power as there are many component suppliers in the market and switching costs are low.
Threat of new substitutes: Threat of substitutes is medium as other 3D technologies can be used for game development but none have replaced game engines yet.
Competitive rivalry: The competition is high among major players due to their continuous product innovations and frequent mergers and acquisitions.
The global Game Engines Market is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing game development across mobile, PC and console platforms. The market size for Game Engines is projected to reach US$ 23.17 Bn by 2030 from US$ 3.46 Bn in 2023.
Regional analysis – North America dominates the global game engines market with highest market share. Asia Pacific region is expected to witness fastest growth over the forecast period owing to presence of key players and rising number of gamers in countries like China and India.
Key players operating in the game engines market are Unity Technologies, Epic Games, Chukong Technologies, Crytek, Valve, YoYo Games, The Game Creators, Marmalade Tech, Idea Fabrik, Leadwerks Software. Unity Technologies and Epic Games captured largest market share in 2021. Other players are focusing on developing customized engines for small and mid-size game developers.