PUBLISHER: Orion Market Research | PRODUCT CODE: 1758740
PUBLISHER: Orion Market Research | PRODUCT CODE: 1758740
Global Handheld Game Console Market Size, Share & Trends Analysis Report by Product (PlayStation, Razer Switchblade, Nintendo Switch, and Others), by Platform (iOS, Android, Windows, and Linux), and by End-User (Adults and Children), Forecast Period (2025-2035)
Industry Overview
Global handheld game console market, estimated at $4.6 billion in 2024, is projected to grow to $11.3 billion with a CAGR of 8.6% during the forecast period (2025-2035). The key driving factors include technological developments, rising disposable incomes, shifting consumer tastes, and the growing availability of different gaming choices. The ability to play games online and anywhere without the requirement of an Internet connection is one of the key advantages of portable gaming consoles. Also, the lightness and portability of these consoles compared to home video game consoles have assisted the market to grow even more. Technological advancements have been a significant growth driver in the industry. The software and hardware technologies applied in game consoles have also seen continuous innovation and enhancement over time by the manufacturers of consoles. The most remarkable technical innovation in game consoles has been the technology of graphics; the quality of graphics has greatly increased from 8-bit graphics in initial systems to 4K resolutions in modern consoles.
Market Dynamics
Increasing demand for Hybrid Portable Gaming Solutions
The need for on-the-go gaming solutions keeps growing as consumers embrace entertainment content that fits their mobile lifestyle. Recent handheld game consoles provide high-performance gaming experiences on par with conventional console systems but with the convenience of on-the-go play. This blend of performance and portability has opened up the potential user base beyond traditional gaming fronts. The COVID-19 pandemic also strengthened this trend, as lockdowns and social distancing made consumers increasingly look towards personal forms of entertainment, which positively impacted the handheld gaming industry. For instance, as per the company's financial report 2023 the lifetime number of Nintendo Switch hardware units sold - including the regular model, Switch Lite, and Switch OLED - stands at 132.46 million, up from 129.53 million last quarter.
Increasing Demand for Cloud Gaming due to 5G Connectivity
By moving the processing to remote servers, cloud gaming or game streaming allows users to play costly games on low-spec devices. Cloud gaming is possible for smartphones and handheld consoles today due to the advent of 5G networks, which have been crucial in eliminating past challenges such as latency, bandwidth limits, and spotty connectivity. AAA games can now be played on handheld devices and smartphones through cloud gaming platforms such as Xbox Cloud Gaming (via Game Pass Ultimate) and Sony's Remote Play, which reduces the requirement for high-cost hardware. Cloud gaming is now possible for portable devices with the advent of 5G networks, which enhance download speed and latency. For Instance, in October 2022, Qualcomm partnered with Razer and Verizon to introduce the Ultimate 5G Handheld Gaming Device powered by Snapdragon G3x, which was the world's first dedicated 5G handheld gaming device.
Market Segmentation
Nintendo Switch Segment to Dominate the Market
Among the products, the Nintendo Switch sub-segment is expected to hold a considerable share of the global handheld game console market. Among its rivals, the Nintendo Switch is unique in that it is a hybrid device that can be used for both docked gameplay on an external screen and portable gaming. Its hybrid features make it appealing to a broad range of users, and both first-party and third-party developers offer it a lot of support. It may function as a portable handheld device or as a conventional home console that is linked to a monitor or television. This allows the Switch to target two markets simultaneously. Additionally, the console is a convenient gadget to travel with due to its adaptability. Nintendo's newly developed products, such as the Switch Lite, offer users even more choices. The Switch Lite can only be used as a portable device; it is not compatible with external monitors, unlike the original Switch. The benefit of the Switch Lite is that it is less costly than the base model Switch, so for players who do not intend to use their device as a home console. Two Joy-Con controllers that are included with the system enable some creative gameplay. A Joy-Con is used to throw Poke Balls and capture Pokemon in the video games Let's Go, Pikachu! And Let's Go, Eevee! This makes it feel more realistic than merely pressing a button.
The global handheld game console is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
The Asia-Pacific Region is expected to grow at a Significant CAGR in the Global Handheld Game Console Market
Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period owing to the due to presence of major market players, increasing disposable income of the population, and rapidly growing young gaming population in this region particularly in countries, such as China, Japan, South Korea, and India. Major players such as Sony dominate the market with their PlayStation, which is popular in countries such as Japan and South Korea, where gaming is a major part of the culture. As the handheld game industry continues to expand, Japan will be the prime location to capture these growth opportunities. Console games are particularly crucial in Japan compared to other Asian digital gaming markets, as the headquarters of major console manufacturers (Sony, Nintendo, and Sega) are in Japan.
The major companies operating in the global handheld game console market include ASUSTeK COMPUTER INC., Logitech, Nintendo, Sony Interactive Entertainment Europe Limited, and Valve Corporation, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments