New research from Omdia shows that global spending on gaming peripherals and accessories will surpass $10 billion in 2023, with revenue forecast to approach $12 billion by 2029.
The research, recently published on Omdia Gaming Peripherals & Accessories Market Forecast 2024shows that gamepads accounted for 44.3% of spending in 2023 and will roughly maintain their share through 2029. Headsets, keyboards, mice, and other peripherals make up the remainder of revenue, with all but mice representing $1 billion-plus market categories. It’s the Other category that will see the strongest increases through 2029, buoyed by sales of higher-value peripherals and accessories like gaming chairs and steering wheels.
Source: Omdia Gaming Peripherals & Accessories Market Forecast 2024
The latest data shows that global spending on peripheral devices has rebounded to its new post-pandemic baseline, with 2023 revenues surpassing the previous high in 2021.
While games themselves face strong consumer resistance to price increases, there is greater price elasticity for premium peripherals, with products like PlayStation’s DualSense controller selling strongly despite costing more than $200. With leading PC gaming storefront Steam reporting that controller usage on its platform has tripled since 2018, there are positive factors beyond the ebb and flow of the console cycle contributing to what will be 2.9% annual growth from 2024 to 2029.
This year, Omdia broke down gamepad revenue by brand for the first time, distributing the size of gamepads from Sony, Microsoft, Nintendo, and more. Nintendo’s growth comes from the runaway success of the Switch, but it hasn’t tested the premium gamepad market to the same extent as its console rivals, with its most notable brand controllers costing well under $100.
In contrast, Microsoft’s last-gen Series X/S console underperformed, but the company’s position as the leading PC gamepad brand still drove respectable growth; Steam reported that 59 percent of its significantly increased gamepad sessions came from Xbox controllers. Like Sony, Microsoft is also adept at catering to the premium market, further boosting revenue.
Sony, however, benefits from both strong console-related gamepad sales and a larger PC presence (Sony gamepad revenue is expected to surpass $2 billion by 2029), as well as providing desirable audio gear like the $200 Pulse earphones.
Other gamepad brands range from budget versions of third-party console controllers to high-end products like Turtle Beach, Razer, and SCUF.
One area to keep an eye on in this category is mobile controllers: gamepads from companies like Backbone that plug into your smartphone, turning it into a gaming device with a form factor similar to the Switch.
The potential for improvement in both mobile gaming itself and the cloud gaming experience on mobile devices is clear, and is one of the factors behind Omdia’s belief that the Other category will surpass Microsoft gamepad revenue by 2029.
Game Developer and Omdia are sister organizations under Informa.