AI in Video Games Market Size, Huge Demand, Analysis by Key Players and Forecast by 2032

The global AI in video games market grows with high-bandwidth networks, rising smartphone use, and the advent of 5G connectivity.

WILMINGTON, DE, UNITED STATES, March 6, 2025 /EINPresswire.com/ -- According to the report, 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.

AI in video gaming enables responsive and adaptive experiences, primarily through NPCs that behave intelligently like human players. It enhances gameplay by making virtual worlds more dynamic, complex, and immersive. AI is crucial in game development, influencing human behavior, enemy design, world interaction, and content generation.

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The AI in video games market is expected to witness notable growth during the forecast period, owing to Increased processing power, Emergence of high bandwidth network connectivity and upsurge in the penetration of smartphones. Moreover, the emergence of 5G network and continuous demand for 3D games is expected to provide lucrative opportunities for the growth of the AI in video games market during the forecast period. An increase in complexity and lack of expertise are the restraint for AI in video games market growth during the forecast period.

Covid-19 Scenario

1. The pandemic highlighted the importance of AI in the gaming industry, leading to increased investment in AI research and development. Game studios and tech companies directed resources toward advancing AI technologies for gaming. Moreover, as more players spent time playing games during lockdowns, AI-powered features such as personalized content recommendations, dynamic difficulty adjustment, and adaptive gameplay became essential for keeping players engaged and immersed in games.

2. Overall, with the increased player base, data analytics powered by AI became crucial. Game publishers and developers leveraged AI to analyze player behavior, preferences, and spending habits, enabling data-driven decision-making for content updates, in-game monetization, and marketing strategies. Therefore, COVID-19 had a positive impact on the AI in video games market.

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Based on component, the hardware segment held the highest market share in 2022, accounting for more than half of the global AI in video games market revenue, this is attributed to the fact that gaming hardware manufacturers are leveraging AI to gain a competitive edge by offering innovative and feature-rich products that appeal to a broader audience. However, the software segment is projected to manifest the highest CAGR of 29.1% from 2023 to 2032, This is because AI-driven animation tools are advancing, allowing for more natural and life like character movements and expressions. Furthermore, the gaming industry focus on delivering high-quality content and immersive experiences drives the adoption of AI tools for content creation and optimization.

Based on genre, the action segment held the highest market share in 2022, accounting for nearly one-third of the global AI in video games market revenue, and is estimated to maintain its leadership status throughout the forecast period. This is because AI-powered systems analyze a player's skill level and adjust the game's difficulty accordingly. This ensures that action games remain enjoyable for both casual and hardcore gamers. However, the role playing segment is projected to manifest the highest CAGR of 32.0% from 2023 to 2032, owing to the fact that AI-driven economies in role playing games simulate supply and demand, affecting in-game prices and availability of items. This adds depth to the game's economic systems, encouraging players to engage in trading and crafting activities.

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Based on region, North America held the highest market share in terms of revenue in 2022, accounting for nearly two-fifths of the global AI in video games revenue, owing to the early adoption of artificial intelligence (AI) technology and the high demand for video games across the North America. However, the Asia-Pacific region is expected to witness the fastest CAGR of 30.3% from 2023 to 2032, and is likely to dominate the market during the forecast period, owing to increasing investments by companies and governments for the implementation of advanced technologies such as AI and robotics.

Leading Market Players: -

Ubisoft
Google DeepMind
Inworld AI
NVIDIA Corporation
Unity Technologies
Latitude.io
Electronic Arts Inc.
PrometheanAI Inc.
Rockstar Games
SideFX

The report provides a detailed analysis of these key players of the global AI in video games market. These players have adopted different strategies such as partnership, product launch, and expansion to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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