Game Engines Market: Increasing demand for high-quality video games across PCs, Mobile and Consoles to drive the market growth

Game Engines Market size was valued at USD 2.3 Billion in 2022 and is expected to grow at a CAGR of 16.9 percent from 2023 to 2029 to reach USD 6.86 Billion.
Game Engines Market Overview
A game engine is a software development program used to develop video games. The features of game engines include artificial intelligence, animation tools, physics and collision engines, audio engines and others. The Game Engines Market has grown rapidly over the past few years. The global market is majorly driven by technological advancements, Increasing demand for immersive gaming experiences and the growing popularity of independent game development. Amazon Lumberyard, Game Maker Studio, CryEngine, Unity, PhyreEngine and Unreal Engine are some of the popular game engines. More and more organizations and sectors outside the game industry such as medicine and science, fashion, television, education, automotive and film production are becoming aware of practical applications of game engine technology for their own fields. The market has also embraced augmented and virtual reality technologies and integrated their capabilities into game engines, which allows developers to create immersive user experiences.
Game Engines Market Snapshot
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Game Engines Market Dynamics
Growing Video Game Industry to Drive the Game Engines Market Growth

Over the past few years, video games have developed into a multi-billion-dollar industry. The factors such as technological advancements, increasing consumer demand and the increasing interest of people in mobile gaming are driving the video game industry. Today’s game engines enable democratic and competitive participation in the production of video games. The accessibility of video game engines along with their core ability to simulate the world, rules and systems, has cultivated a broader potential beyond entertainment products. The game engines are expected to drive innovation forward.
Global Video Game Market Share, by Type, In 2022 (%)


Increasing Demand for Game Engines in the Construction

The demand for tools that utilize game engines has increased in the construction industry. The professionals in Architectural Engineering and Construction (AEC) have become more efficient and foster new ways of conveying narrative, enhancing coordination and deploying data aggregation due to the use of real-time visualization technologies. These game engine technologies and their interaction with the AEC industry are expected to unlock opportunities in the industry. Designers, Engineers and/or Constructors are increasingly using tools such as Revit, ArchiCAD and Rhinoceros to create architectural designs. Epic Games, the creator of Unreal Engine 4 (UE4) has created an Enterprise team long back whose main purpose is to support the AEC industry and boost the Game Engines Market growth.

Licensing of the Game Engines to be the major Challenge for the Game Engines Market

Game Engines are licensed in various ways, depending on the business model of owning companies. Some game engines impose licensing restrictions and require developers to pay based on revenue. These costs impact the profitability of game development. Business licenses vary according to the turnover of the organization applying for the license. There are also additional conditions that should be met before a user is eligible to procure a license. Defense needs for a license are very different from the original intent of the commercial provider. In particular, the defense often wants full rights to any software that it purchases.

Future of the Game Engines

Game Engines have empowered millions of developers to create visually stunning worlds, tell impactful stories and immerse players in new universes. Besides gaming, these engines are also used in other industries such as automotive and construction, providing unparalleled levels of design, simulation and computing power for creators. Striving for greater fidelity in digital environments is expected to be pivotal in building the future Metaverse, which will depend on broad interconnectivity between millions of concurrent users. The coming decades are expected to see the game engines emerge as key tools for building the infrastructure of the Metaverse, offering creators a way to bring their ideas to life within vibrant virtual worlds.
Game Engines Market Regional Insights
The North American Game Engines Market dominated the global market in 2022. This is attributed to the presence of game engine developers such as Epic Games (Unreal Engine) and Unity Technologies (Unity). Both Unreal Engine and Unity are gaining popularity in the region, with many indie developers and large studios using these engines. The United States has been a hub for game development and held the largest market share in 2022. The market in Canada and Mexico is expected to grow at a high CAGR during the forecast period.

European Game Engines Market is the other largest market majorly due to the strong presence of game studios and developers in countries like the United Kingdom, France, Germany and Sweden. The most popular choices among the developers are Unreal and Unity, similar to North America. Many European developers are showing interest in engines such as CryEngine, which offers advanced visual capabilities.

The region also has a growing indie game community, which is contributing to the use of engines such as Godot and Game Maker Studio.

Asia Pacific Game Engines Market is expected to grow at a high CAGR during the forecast period. China, Japan and South Korea are the region’s major markets and each of these countries has its own game engine preferences. For example, the Coco2d-x engine has been widely used in China because of its native support for game development. South Korea majorly focuses on the online game industry with engines like Unreal and Unity, whose adoption is rising in the region. In India, the GST Council recently decided to impose 28 percent GST on full face value for online gaming companies, which is expected to hamper the market growth in the country during the forecast period.
Game Engines Segment Analysis
Based on Game Engines Type: The market is divided into Commercial Game Engines, Open-Source Game Engines, In-House/Proprietary Game Engines, Browser-Based Game Engines and Middleware Game Engines. The Commercial Game Engines segment held the major share of the market and is expected to grow rapidly during the forecast period. Unity and Unreal Engine are the two key players that primarily dominated the commercial game engines market share. The Open-Source Game Engines segment is expected to grow rapidly during the forecast period. Open-Source Game Engines allow developers to modify and contribute to the development of engines freely, which is increasing the demand for this type of engines.

Based on Platform: The market is divided into PC, Console, Mobile and Others. The PC and Mobile segments held the major Game Engines Market share in 2022. The increase in the creation of infrastructure around 5G is expected to support both segments during the forecast period.
Game Engines Market, by Platform (%) in 2022


Based on Application: The market is divided into Video Game Development, Serious Games and Simulations, Architectural Visualization, Film and Animation, Interactive Multimedia Experiences, Mobile Games and Game Prototype. The Mobile Games segment dominated the global market in 2022. The interest of people has largely increased in mobile gaming in the past few years due to which it has become the dominant force in the gaming industry. During the forecast period,

Game Engines Market Competitive Landscape

As per the research, the market is competitive and is rapidly growing due to the high investments in research and development activities by key Game Engines competitors in the industry. Many key players are collaborating to increase their presence in the Game Engines Industry and offer new versions of engines with more comprehensive solutions.

Unity, developed by Unity Technologies and Unreal developed by Epic Games, both the engines held around 61 percent of the market share for game development. In November 2021, Epic Games acquired Harmonix, a music game developer, which continued to support their games such as Rock Band 4 and Fuser. It helped Epic to expand musical experiences and their larger metaverse plans. Recently in 2023, Sony Group, an investor in Sony Honda Mobility, presented their idea that game engines will become part of the car business. Sony is also an investor in Epic Games. The Afeela EV that Sony Honda Mobility plans to roll out in 2026 is expected to use a game engine to interface many parts of the car that the driver sees, touches and operates.
Game Engines by Total Games (%) in 2022

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Global Game Engines Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 2.3 Bn.


Forecast Period 2023 to 2029 CAGR:
16.9%
Market Size in 2029:
US $ 6.86 Bn.


 Segments Covered:
by Type
2D Game Engine
2.5D Game Engine
3D Game Engine


by Game Engines Type
Commercial Game Engines
Open-Source Game Engines
In-House/Proprietary Game Engines
Browser-Based Game Engines
Middleware Game Engines


by Component
Solution
Services


by Genre
First Person Shooter (FPS)
Third Person Shooter (TPS)
Multiplayer Online Battle Arena (MOBA)
Role-Playing Games (RPG)
Real-Time Strategy (RTS)
Puzzle Games
Others


by Platform
PC
Console
Mobile
Others


by Application
Video Game Development
Serious Games and Simulations
Architectural Visualization
Film and Animation
Interactive Multimedia Experiences
Mobile Games
Game Prototype



Game Engines Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and the Rest of APAC)
South America (Brazil, Argentina Rest of South America)
Middle East & Africa (South Africa, GCC, Egypt, Nigeria and the Rest of ME&A)
Game Engines Key Players
1. Clickteam
2. Cocos2d
3. Crytek GmbH
4. GameSalad
5. Marmalade Technologies Ltd.
6. Phaser
7. ASCII Corporation
8. Scirra Ltd.
9. The Game Creators Ltd.
10. Unity Software Inc.
11. YoYo Games Ltd.
12. Epic Games
13. Chukong Tech
14. Valve Corporation
15. Leadwerks Software
16. Sony
17. Amazon
18. Garage Games
19. Godot Engine
20. Silicon Studio Corporation
Frequently Asked Questions
1] What was the Game Engines Market size in 2022?
Ans. USD 2.3 Bn was the Game Engines Market size in 2022.

2] What is the expected Game Engines Market size by 2029?
Ans. USD 6.86 Bn is the expected Game Engines Market size by 2029.

3] What is the expected CAGR of the Global Game Engines Market during the forecast period?
Ans. The Global Game Engines Market is expected to grow at a CAGR of 16.9 percent during the forecast period.

4] What are the major Game Engines Market segments?
Ans. The market is divided by Type, Game Engines Type, Component, Genre, Platform and Application.

5] Which region is expected to hold the largest Game Engines Market share during the forecast period?
Ans. The Game Engines Market share of Asia Pacific is expected to hold the largest global market share during the forecast period.