Cybersecurity in Gaming Market Size, Share & Analysis | 2031

Report Description

Market Outlook:

The global cybersecurity in gaming market was valued at USD 2,774.9 Million in 2022 and is expected to reach USD 17,661.5 Million in 2031, expanding at a CAGR of 23.6% during the forecast period.

Cybersecurity in gaming is the protection of digital systems, such as hardware, software, data, and other sensitive information from cyberattacks. Cyberattacks are malicious attempts to access, damage, or disrupt these systems by unauthorized parties such as hackers, cybercriminals, or terrorists. Cybersecurity in gaming aims to prevent, detect, and respond to these threats effectively and efficiently. Some of the benefits of cybersecurity in gaming are as follows:

• It enhances the security and privacy of personal data and accounts of gamers such as credit card information, passwords, and location.

• It prevents financial fraud and identity theft by preventing hackers from stealing or manipulating bank accounts or payment codes of gamers.

• It protects gamers from phishing and malware attacks by alerting them of fraudulent emails or messages that try to trick them into revealing their information or downloading harmful files.

• It ensures fair and safe gameplay by preventing hackers from selling cheats or hacks that can give unfair advantages or harm other players’ devices.

• It improves the performance and quality of games by preventing hackers from disrupting or damaging the game servers or networks.

• It enables new business models and opportunities for game developers and publishers by using technologies such as cloud computing, artificial intelligence, and blockchain to create innovative and secure games.

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Macro-economic Factors

Globalization

One significant macro-economic factor impacting the cybersecurity in gaming market is globalization. Gamers across the globe are able to play games online, as the gaming industry expands globally. This global reach increases the need for secure data transfers, cloud services, and digital assets. However, it also opens up new avenues for cyber threats such as personal data theft, financial fraud, and in-game item hacking.

Technological Advancement

The gaming industry is continuously evolving with the advent of new technologies such as AI, VR, AR, blockchain, and metaverse. These technologies enhance the gaming experience and also introduce new cybersecurity vulnerabilities.

Regulation

Various laws and regulations protect the rights of gamers, developers, publishers, and other stakeholders in the gaming industry. For instance, data protection laws such as GDPR in Europe and CCPA in the US impose certain standards on gaming companies regarding data handling. These regulations also pose new challenges for cybersecurity compliance.

Market Dynamics

Market Driver- Rising Adoption of Cloud-based Services

The gaming industry is progressively adopting cloud-based services for game hosting and delivery. While this enhances the gaming experience by providing fast and smooth gameplay, it also introduces new avenues for cyber threats. For instance, hackers are able to exploit the cloud environment to launch Distributed Denial of Service (DDoS) attacks on servers, steal data from cloud storage, or compromise cloud credentials. There has been a monumental surge in targeted cyber-attacks against the gaming industry, with a 167% increase in web application attacks in 2021. The gaming industry became the most targeted industry among others in 2022, with respect to Distributed Denial of Service (DDoS) attacks. These threats increase, as the industry continues to grow.

Market Driver- Increasing Number of New Gamers

The swift growth of the gaming industry has led to an increase in the number of new gamers. This boosts the demand for online gaming platforms and also exposes them to increasing number of cyber threats. Hackers often target new gamers who lack robust cybersecurity habits or awareness, making them vulnerable to threats such as weak passwords, phishing links, or malicious software downloads.

Market Driver- Rising Popularity and Revenue of E-sports

The surge in popularity and revenue of e-sports is a significant factor propelling the growth of cybersecurity in the gaming market. E-sports attract a large audience, more sponsors, and increased betting activity, as these gain more traction and generate high revenues. However, such heightened attention also draws in hackers who aim to exploit players and teams for financial gain or sabotage. Consequently, the demand for robust cybersecurity measures in the gaming industry escalates to protect the integrity of the games, the safety of the players, and the financial stakes involved. This, in turn, drives the growth of the cybersecurity market within the gaming industry.

Market Restraint- Lack of Awareness

Lack in awareness and education about cybersecurity best practices among gamers, game developers, and publishers is a significant impediment to the growth of cybersecurity in the gaming market. This lack of knowledge leads to inadequate protection measures being implemented, leaving data and assets vulnerable to cyberattacks. The stakeholders unknowingly expose themselves to risks without a solid understanding of the potential threats and the necessary protective measures, thereby undermining the overall security of the gaming environment. This situation hampers the advancement of cybersecurity in the gaming industry, as it limits the effectiveness of security measures, even when they are in place. Consequently, this creates a less secure gaming environment, which deters users and negatively impact the market.

Market Opportunity- Rising Demand for Online Gaming

The burgeoning demand and popularity of online gaming are paving the way for numerous opportunities in the cybersecurity within the gaming industry. Online gaming becomes an attractive target for cyber threats, as it continues to expand, necessitating robust cybersecurity measures. Here is how this trend is creating opportunities:

• Development of Advanced Technologies: The growth of the gaming industry has spurred the development and adoption of innovative technologies such as cloud gaming, virtual reality, artificial intelligence, blockchain, and biometrics. These technologies enhance the gaming experience and present new avenues for cybersecurity solutions tailored to these technologies.

• Implementation of Security Policies and Standards: The increasing cyber threats in online gaming have highlighted the need for comprehensive security policies and standards. These safeguard the rights and interests of gamers and developers alike as well as include data privacy laws, encryption methods, authentication protocols, and ethical guidelines.

• Provision of Security Services and Products: The escalating demand for online gaming has led to a parallel increase in the need for security services and products. These include antivirus software, firewalls, VPNs, password managers, identity verification systems, fraud prevention tools, and incident response plThese tools help in preventing, detecting, responding to, and recovering from cyberattacks.

Scope of the Report

The report on the global cybersecurity in gaming market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

The global cybersecurity in gaming market is segmented on the basis of component, deployment mode, application, and regions.

In terms of component, the cybersecurity in gaming market is segmented into hardware, software, and services. The software segment is expected to dominate the market in 2022, due to its essential role in game creation, the technological progress in gaming software, and the vulnerabilities of online gaming. The rise of e-sports and competitive gaming also drives the demand for sophisticated gaming software. However, these factors also increase cybercrime risks, necessitating robust cybersecurity measures and thereby, asserting dominance of the software segment in the market.

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On the basis of deployment mode, the cybersecurity in gaming market is segmented into cloud and on-premises. The cloud segment is expected to hold a substantial share of the market during the forecast period, as cloud gaming requires effective cybersecurity solutions that protect users from malicious threats and ensure a smooth & enjoyable gaming experience. Some of the emerging trends in cybersecurity for cloud gaming include encryption, authentication, firewall, anti-virus, anti-malware, anti-cheat systems, and data backup. Additionally, cloud gaming providers need to comply with relevant regulations and standards regarding data protection and privacy.

In terms of application, cybersecurity in gaming market is segmented into mobile gaming, pc gaming, and console gaming. The mobile gaming segment is expected to dominate the market in 2022. Mobile games have become attractive targets for cybercriminals, due to the valuable user and business data that they contain. The number of users impacted by cyber threats related to mobile gaming rose by 185% at the start of the pandemic. These threats include credential stuffing, phishing attacks, and malware disguised as game downloads. Despite a slight decrease, mobile threats are still widespread. Hence, the prominence of the mobile gaming segment is fueled by the ongoing necessity to protect games from these relentless threats.

Regional Outlook

Based on regions, the cybersecurity in gaming market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in Asia Pacific is growing at a rapid pace during the forecast period, due to quick adoption of new internet technologies such as cloud computing, blockchain, and the Internet of Things (IoT), which have introduced new vulnerabilities for cybercriminals to exploit. The high digitalization rate and the growing number of smartphone users in the region have also led to a growth in the online gaming industry.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Cybersecurity in Gaming Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Cybersecurity in Gaming Market