Global Skill Gaming Market Size, Share and Analysis 2032 (2024)

Skill GamingIndustry Prospective:

The global skill gaming market size was worth around USD 34.16 billion in 2023 and is predicted to grow to around USD 106.78 billion by 2032 with a compound annual growth rate (CAGR) of roughly 13.50% between 2024 and 2032.

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Skill Gaming Market: Overview

Skill gaming refers to sports & entertainment activities that are purely dependent on the player’s skills and expertise for completion or winning. Such games do not have any scope for chance as the levels crossed by the players solely depend on their skill level. In some cases, there may be games that showcase a blend of skill, expertise, and randomness; however, some form of technical knowledge of the game is required to play such games. Certain examples of skill gaming include chess, cricket, or video games requiring intense focus and thorough knowledge of the gaming routine. Skill-based games are known to impact the comprehensive personality of the players.

Players are encouraged to participate in such games since they can help develop cognitive and decision-making skills. In addition to this, skill-based games have found wide acceptance among students, and schools and other learning centers have dedicated units and facilities to train students in skill-based gaming activities. During the forecast period, the skill gaming industry is expected to witness a high growth rate as more people are now open to incorporating skill-based gaming into their everyday routine. Additionally, the professional-level sports sector has witnessed massive growth in the last decade as more countries are now investing in resources to improve their presence in the global sports industry.

Key Insights:

• As per the analysis shared by our research analyst, the global skill gaming market is estimated to grow annually at a CAGR of around 13.50% over the forecast period (2024-2032)
• In terms of revenue, the global skill gaming market size was valued at around USD 34.16 billion in 2023 and is projected to reach USD 106.78 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising number of world-level competitions and events at regional level
• Based on game genre segmentation, board-based was predicted to show maximum market share in the year 2023
• Based on skill type segmentation, mental was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Skill Gaming Market: Growth Drivers

Rising number of world-level competitions and events at the regional level will drive market demand

The global skill gaming market is expected to grow due to the rising number of competitions being held at regional and global scales. These competitions provide players with exposure and opportunities to expand their skill set and compete with other teams or players from other cultures to emerge as the winner. Moreover, modern competitions also offer scholarships that the players can use either for funding their education or upgrading their skills.

For instance, in December 2023, Uzbekistan hosted the World Rapid and Blitz Championships which was announced by the International Chess Foundation. In March 2024, 10 thriving athletes from the Tamil Nadu state of India were granted the India Cements-Tamil Nadu Sports Journalists’ Association Scholarships. Each student was awarded a cheque of INR 30,000.

In January 2024, the Olympic Museum and Olympic House hosted 12 athletes who are also the recipients of Olympic Solidarity Scholarships from 7 African continents ahead of the Olympics to be held in Paris in 2024. Such encouraging measures adopted by global platforms and agencies to support athletes participating in skill-based gaming will fuel higher market demand during the forecast period.

Growing expenditure by the government on the regional skill gaming segment will fuel the market growth rate

One of the key essentials for athletes to flourish in skill-based gaming is access to proper training and supporting facilities. As the number of athletes and willing participants is growing globally, there is an urgent need to develop infrastructure that encourages players to sharpen their skills and compete on an international scale.

In February 2023, Australia-based sports management company Basketball Magic in association with the National Basketball Association (NBA) announced a multiyear deal through which the former is obligated to build the country’s first NBA Basketball School. The firm is focused on basket development in the country from the grassroots level. In December 2023, India witnessed the commencement of an international-grade cricket training facility in Panvel. The project is worth INR 9 crore thus contributing to the global skill gaming market.

Skill Gaming Market: Restraints

Negative impact of online skill games may restrict the market expansion rate

The global skill gaming industry is expected to be limited in terms of growth due to the negative impact of online skill-based games on the mental health of gamers. This can be especially associated with unregulated skill-based online games. For instance, certain skill games require players to invest real money to reach the next level in the game.

However, poor decisions can lead to financial losses that the players may be unable to recover. In addition to this, there is a high risk of players becoming addicted to such games leading to a negative impact on physical and mental health along with problems in the personal relationship of the player.

Skill Gaming Market: Opportunities

Growing investments in the 5G sector will fuel market demand for online skill games

The global skill gaming market is likely to register higher growth opportunities as a result of growing investments in the 5G sector. The high-speed internet connectivity will result in more efficient streaming and playing. Players will encounter less downtime and an improved rate of reaction while playing online skill games. In 2022, Europe’s total investment toward the 5G rollout reached over 59 billion euros. In February 2024, the officials in Europe acknowledged the delays that the region's telecom industry is witnessing in rolling out 5G networks. The European Commission mentioned that they are working on new ideas that can improve the region’s digital infrastructure so that big telecom giants can make the 5G network a reality. Other nations are also registering high investments in the 5G network for improved connectivity.

In addition to this, there has been a sharp rise in the consumer electronics sector. The rise in disposable income of the general population along with the presence of multiple players offering consumer electronics across price ranges has expanded the presence of the industry. As more people have become accustomed to using smart devices, the chances of indulging in some form of skill gaming are higher. As the global consumer electronics sector undergoes further growth, the skill gaming industry may also benefit.

Skill Gaming Market: Challenges

Changing rules and regulations around skill gaming may challenge market expansion

The rules around skill gaming vary from one region to another. This is especially applicable to online skill games. For instance, some skill-based games may fall under the category of gambling which is illegal in some parts of the world. Last year, narcotics departments worldwide were closely monitoring online skill-based games since they have become the current hunting ground for drug cartels as per reports published by international intelligence agencies thus impacting the global skill gaming market.

Skill Gaming Market: Segmentation

The global skill gaming market is segmented based on game genre, skill type, and region.

Based on game genre, the global market segments are tile-based, puzzle-based, dice-based, board-based, animated games, card-based, and word or number-based. In 2023, the highest growth was witnessed in the board-based segment. The last 5 years have witnessed a switch in players opting for digital board games that are easy to play. Additionally, certain games host players from different parts of the world which has attracted more participants. Tile-based games are extremely popular among people. Currently, there are multiple variants of tile-based games that exist in the market. As per market research, over 23% of millennials are willing to participate in strategy board games.

Based on skill type, the global market divisions are mental and physical. In 2023, the highest demand was observed in the mental segment. Skill-based games check the mental strength of the players. Additionally, these games challenge participants to expand their critical thinking and decision-making skills. The growing number of people with access to modern technology and clarity over differences between online skill gaming and gambling will impact segmental demand. More than 1 billion people globally play online games.

Skill Gaming Market: Report Scope

Skill Gaming Market: Regional Analysis

North America will generate the highest growth rate during the forecast period

The global skill gaming market is expected to witness the highest growth in North America. In 2023, the region dominated over 28.5% of the total revenue. The growing number of avid skill gamers in North America is the major growth propeller. Regions such as the US and Canada have a high number of people interested in exploring skill gamers. Moreover, they have access to the tools required to play the games. For instance, the relatively higher disposable income per capita allows the general population to spend on exploring new hobbies and interests such as skill gaming. Additionally, these countries also have a supporting legal environment. The regional industry enjoys fairly transparent and well-defined regulations related to skill gaming.

The proliferation of augmented reality (AR) and virtual reality (VR) will further impact regional market expansion. Asia-Pacific is expected to register a high growth rate during the forecast period. The region has a high population density. It is also home to some of the world’s fastest-growing economies with the domestic population showing improved purchasing power. The rising popularity of skill gaming and the higher access to technology required for skill gaming will be beneficial in the long run.

Skill Gaming Market: Competitive Analysis

The global skill gaming market is led by players like:

• Electronic Arts (EA)
• Activision Blizzard
• Sony Interactive Entertainment
• Epic Games
• Mojang Studios
• Riot Games
• Sega
• Valve Corporation
• Tencent Games
• Nintendo
• Bethesda Softworks
• Ubisoft
• Konami
• Microsoft Corporation
• Square Enix
• Supercell
• Capcom
• King
• Bandai Namco Entertainment
• Niantic

The global skill gaming market is segmented as follows:

By Game Genre

• Tile-Based
• Puzzle Games
• Dice-Based
• Board-Based
• Animated Games
• Card-Based
• Word or Number-Based

By Skill Type

• Mental
• Physical

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa