PUBLISHER: The Business Research Company | PRODUCT CODE: 1686467
PUBLISHER: The Business Research Company | PRODUCT CODE: 1686467
Generative AI In Gaming Global Market Report 2025
Generative AI in gaming refers to applying artificial intelligence (AI) techniques, particularly generative models, to create and enhance various elements within video games. Generative AI in gaming is used to produce content, environments, characters, and even entire game worlds, providing a dynamic and immersive experience for players.
The main types of techniques in generative AI in gaming are deterministic and nondeterministic. Deterministic techniques in generative AI for games are predictable and straightforward algorithms used in game development. The functions include image enhancement, level generation, scenarios and stories, balancing in-game complexity, and non-player characters. The end users are categorized into game studios, developers, designers, artists, and other end users.
The main types of techniques in generative AI in gaming are deterministic and nondeterministic. Deterministic techniques in generative AI for games are predictable and straightforward algorithms used in game development. The functions include image enhancement, level generation, scenarios and stories, balancing in-game complexity, and non-player characters. The end users are categorized into game studios, developers, designers, artists, and other end users.
The generative AI in gaming market size has grown exponentially in recent years. It will grow from $1.47 billion in 2024 to $1.81 billion in 2025 at a compound annual growth rate (CAGR) of 22.8%. The growth in the historic period can be attributed to competition in the gaming industry, desire for player-centric content, need for scalability and flexibility in game design, cost and time efficiency in game development, and rise of procedural content generation.
The generative AI in gaming market size is expected to see exponential growth in the next few years. It will grow to $4.18 billion in 2029 at a compound annual growth rate (CAGR) of 23.4%. The growth in the forecast period can be attributed to integration of generative AI in virtual reality (VR) and augmented reality (AR) games, demand for adaptive and dynamic game worlds, emergence of ai-driven game assistants and NPCS, integration of generative AI in game streaming platforms, and increasing emphasis on player engagement and retention. Major trends in the forecast period include AI-generated virtual actors and NPCS, AI-driven dynamic storytelling, collaborative AI design environments, real-time AI content generation for live games, and integration of generative AI in game design tools.
The growing gaming industry is expected to propel the growth of generative AI in the gaming market going forward. The gaming industry is a dynamic and rapidly evolving sector encompassing various aspects, including video games, esports, gaming hardware, and software development. Generative AI has found several applications in the gaming industry, enhancing multiple aspects of game development, content creation, and player experiences. For instance, in May 2023, according to Uswitch Limited, a UK-based price comparison service and switching website, the total valuation of the UK video game consumer market reached £7.05 billion ($7.57 billion) in 2022, reflecting a 17% increase compared to 2021. Further, the sales of digital games in the UK witnessed a growth of one million units between 2021 and 2022, rising from 61 million to 62 million. Therefore, the growing gaming industry is driving the growth of generative AI in the gaming market.
Major companies operating in generative AI in the gaming market focus on developing technologically advanced products, such as AI-driven game design instruments, to gain a competitive advantage. AI-driven game design instruments refer to tools and systems that leverage artificial intelligence (AI) to assist and enhance various aspects of the game development process. For instance, in November 2023, Bitmagic, a UK-based blockchain technology and RPG-based virtual gaming metaverse platform provider, launched its generative AI-powered game development platform, opening it to the public through a closed alpha program. This innovative platform empowers individuals without extensive development experience to bring their game ideas to life in 3D. Users can articulate their concepts through text prompts, and Bitmagic, through its advanced AI, transforms these descriptions into fully playable games. The Bitmagic platform is the world's first system to generate fully playable games with just a single prompt. Demonstrations of the platform showcase its remarkable ability to rapidly create game assets, seamlessly arranging them like a cascade in a game scene.
In October 2023, Game Theory, an India-based sports technology company, acquired Matchday AI Technologies Pvt. Ltd. for an undisclosed amount. The acquisition is intended to bolster Game Theory's dedication to innovation in sports gaming by incorporating technology into casual real sports. Matchday AI Technologies Pvt. Ltd. is an India-based artificial intelligence-based sports and gaming provider.
Major companies operating in the generative AI in gaming market are Google LLC, International Business Machines Corporation, NVIDIA Corporation, Baidu Inc., Microsoft Game Studios, Activision Blizzard Inc., Electronic Arts Inc., Titan AI Inc., Square Enix Holdings Co. Ltd., Ubisoft Entertainment SA, Unity Technologies Inc., Sony Interactive Entertainment LLC, Rockstar Games Inc., SideFX Software Inc., Kata.ai, Pyka Inc., Promethean AI Inc., Sixfold AI Limited, Illumix Inc., Charisma.ai Limited, Bounti Labs Inc., OpenAI LP, Latitude Technologies Inc., Apex Game Tools, AidaMask, Procedural Arts LLC, Martian Lawyers Club Inc., Rival Theory Inc., Latitude Technologies Inc., Selas Studio
Asia-Pacific was the largest region in the generative AI in gaming market in 2024. The regions covered in the generative ai in gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the generative AI in gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The generative AI in gaming market consists of revenues earned by entities by providing services such as procedural content generation (PCG) for dynamic level design, object placement, and terrain creation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in gaming market also includes sales of products such as dynamic level design tools, procedural content generation systems, and adaptive narrative engines. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Generative AI In Gaming Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on generative ai in gaming market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase
Scope
Table of Contents
1. Executive Summary
2. Generative AI In Gaming Market Characteristics
3. Generative AI In Gaming Market Trends And Strategies
4. Generative AI In Gaming Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Covid And Recovery On The Market
5. Global Generative AI In Gaming Growth Analysis And Strategic Analysis Framework
- 5.1. Global Generative AI In Gaming PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
- 5.2. Analysis Of End Use Industries
- 5.3. Global Generative AI In Gaming Market Growth Rate Analysis
- 5.4. Global Generative AI In Gaming Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
- 5.5. Global Generative AI In Gaming Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
- 5.6. Global Generative AI In Gaming Total Addressable Market (TAM)
6. Generative AI In Gaming Market Segmentation
7. Generative AI In Gaming Market Regional And Country Analysis
8. Asia-Pacific Generative AI In Gaming Market
9. China Generative AI In Gaming Market
10. India Generative AI In Gaming Market
11. Japan Generative AI In Gaming Market
12. Australia Generative AI In Gaming Market
13. Indonesia Generative AI In Gaming Market
14. South Korea Generative AI In Gaming Market
15. Western Europe Generative AI In Gaming Market
16. UK Generative AI In Gaming Market
17. Germany Generative AI In Gaming Market
18. France Generative AI In Gaming Market
19. Italy Generative AI In Gaming Market
20. Spain Generative AI In Gaming Market
21. Eastern Europe Generative AI In Gaming Market
22. Russia Generative AI In Gaming Market
23. North America Generative AI In Gaming Market
24. USA Generative AI In Gaming Market
25. Canada Generative AI In Gaming Market
26. South America Generative AI In Gaming Market
27. Brazil Generative AI In Gaming Market
28. Middle East Generative AI In Gaming Market
29. Africa Generative AI In Gaming Market
30. Generative AI In Gaming Market Competitive Landscape And Company Profiles
31. Generative AI In Gaming Market Other Major And Innovative Companies
32. Global Generative AI In Gaming Market Competitive Benchmarking And Dashboard
33. Key Mergers And Acquisitions In The Generative AI In Gaming Market
34. Recent Developments In The Generative AI In Gaming Market
35. Generative AI In Gaming Market High Potential Countries, Segments and Strategies
36. Appendix
