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Artificial Intelligence (AI) In Games Market Report 2024: Growth, Trends, Forecast to 2033
Artificial Intelligence (AI) In Games Market Report
According to The Business Research Company's, The artificial intelligence (AI) in games market size has grown rapidly in recent years. It will grow from $2.04 billion in 2023 to $2.44 billion in 2024 at a compound annual growth rate (CAGR) of 19.1%. The growth in the historic period can be attributed to increased evolution of game design, increased influence of AI research, rise of open-world games, increased demand for competitive gaming.
The artificial intelligence (AI) in games market size is expected to see rapid growth in the next few years. It will grow to $4.84 billion in 2028 at a compound annual growth rate (CAGR) of 18.7%. The growth in the forecast period can be attributed to increasing focus on inclusive and accessible gaming, expansion of indie game development, rapid growth of esports and competitive gaming, integration of AI in game design tools, increasing focus on personalization and player engagement. Major trends in the forecast period include AI-driven content moderation, AI-powered voice assistants, AI-generated content, enhanced multiplayer experiences, emotionally intelligent NPCs.
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Market Drivers and Trends:
The growing popularity of mobile and online gaming is expected to propel the growth of artificial intelligence (AI) in the games market going forward. Mobile and online gaming refers to the playing of video games on mobile devices such as smartphones and tablets, as well as through online platforms. Developers constantly push boundaries with innovative game designs, storytelling, and immersive graphics, capturing the interest of players and making them more accessible to a broader audience. AI development in games provides vast datasets for training algorithms, enabling AI systems to learn and improve through interactions with diverse player behaviors and preferences. For instance, in June 2022, according to a study conducted by the Office of Communications (Ofcom), a UK-based government broadcasting and telecommunications authority, individuals aged 13 to 64 spent an average of seven and a half hours per week, roughly equivalent to one hour per day, engaging in online gaming activities. Notably, in 2021, there was a notable 25% increase in the amount of time spent on online gaming, particularly among those in the 55-64 age group. Therefore, the growing popularity of mobile and online gaming experiences is driving the growth of artificial intelligence (AI) in the games market.
Major companies operating in artificial intelligence (AI) in the games market are developing advanced technologies, such as AI-powered NPCs, to serve customers better with advanced features. These are virtual entities in video games or simulations driven by artificial intelligence algorithms, enabling dynamic and responsive behavior. For instance, in May 2023, Replica Studios, an Australia-based AI software company, launched AI-driven intelligent non-player characters (NPCs) for unreal engines equipped with either OpenAI or users' custom AI language models. The technology leverages Replica's extensive library of 120+ ethically licensed AI voices, empowering game developers to scale up game development and craft innovative, dynamic gaming interactions.
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Major Key Players of the Market:
Google LLC, Microsoft Corp., Tencent Holdings Ltd., Sony Group Corp., NVIDIA Corp., Baidu Inc., Nintendo Co. Ltd., NetEase Inc., Vivendi, Activision Blizzard, Electronic Arts Inc., Take Two Interactive Software Inc., Playtika, Square Enix, Konami Group Corp., NCSoft, Unity Software Inc., Capcom Co. Ltd., Behaviour Interactive Inc., Side Effects Software Inc., Quantic Dream, Charisma Entertainment Ltd., Ubisoft Entertainment SA, AI21 Labs, Insomniac Games, Crytek GmbH, PrometheanAI Inc., COGNOSPHERE PTE. LTD., Theai Inc., kashbet
Artificial Intelligence (AI) In Games Market 2024 Key Insights:
• The Artificial Intelligence (AI) In Games Market is expected to grow to $4.84 billion in 2028 at a compound annual growth rate (CAGR) of 18.7%.
• Mobile And Online Gaming Driving Growth Of Artificial Intelligence (AI) In Games Market
• Leading Companies Innovate AI-Powered NPCs For Enhanced Gaming Experiences
• North America was the largest region in the artificial intelligence (AI) in games market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in games market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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