AI in Video Games Market
According to a new report published by Allied Market Research, titled, “AI in Video Games Market,” The ai in video games market was valued at $1.1 billion in 2022, and is estimated to reach $11.4 billion by 2032, growing at a CAGR of 26.8% from 2023 to 2032.
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AI in gaming refers to artificial intelligence powering responsive and adaptive behavior within video games. A common example is for AI to control non-player characters (NPCs), which are often sidekicks, allies or enemies of human users that tweak their behavior to appropriately respond to human players’ actions. By learning from interactions and changing their behavior, NPCs increase the variety of conversations and actions that human gamers encounter.
AI is responsible for determining the optimal path for NPCs to navigate through the game world. Pathfinding algorithms calculate the most efficient route from one point to another while accounting for obstacles, terrain, and other dynamic elements. This ensures that NPCs move realistically and follow the game’s level design. Further, AI can adapt to changing circumstances in the game. For instance, if a player repeatedly uses a particular strategy, the AI may learn to counter it. This adaptability enhances the challenge and replay ability of the game.
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Further, AI-powered in-game voice assistants are providing players with real-time guidance, tips, and information, enhancing the player’s experience and helping them navigate complex games more effectively. Therefore, these trends are drving the growth of artificial intelligence in video games market.
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 hard gamers.
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However, the role-playing segment is projected to manifest the highest CAGR of 32.0% from 2023 to 2032, because 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.
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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