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Artificial Intelligence (AI) in Games Market to Grow by USD 27.47 Billion from 2025-2029, Boosted by AR and VR Game Adoption, Report on AI’s Role in Market Transformation- Technavio

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NEW YORK, Feb. 10, 2025 /PRNewswire/ — Report with the AI impact on market trends – The global Artificial intelligence (AI) in games market size is estimated to grow by USD 27.47 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  42.3%  during the forecast period. Growing adoption of ar and vr games is driving market growth, with a trend towards increasing emergence of cloud gaming. However, network latency in between games  poses a challenge. Key market players include Capcom Co. Ltd., Charisma Entertainment Ltd., COGNOSPHERE PTE. LTD., Electronic Arts Inc., Gameloft SE, Google LLC, Konami Group Corp., Latitude, Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., NVIDIA Corp., PrometheanAI Inc., Side Effects Software Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Theai Inc., Ubisoft Entertainment SA, and Unity Technologies Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Artificial Intelligence (AI) In Games Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 42.3%

Market growth 2025-2029

USD 27474 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

32.9

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 40%

Key countries

US, China, Canada, Japan, South Korea, UK, Germany, Brazil, France, and Italy

Key companies profiled

Capcom Co. Ltd., Charisma Entertainment Ltd., COGNOSPHERE PTE. LTD., Electronic Arts Inc., Gameloft SE, Google LLC, Konami Group Corp., Latitude, Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., NVIDIA Corp., PrometheanAI Inc., Side Effects Software Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Theai Inc., Ubisoft Entertainment SA, and Unity Technologies Inc.

Market Driver

Artificial Intelligence (AI) is revolutionizing the games market with trends like AI-generated content, Virtual Reality (VR), and Augmented Reality (AR). Games are now using AI algorithms to create 3D representations, enhance player experience on platforms like Microsoft HoloLens 2, and improve sensor technology. AI technologies, including machine learning and neural networks, power advanced features like ray tracing and realistic physics simulations in games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2. Network latency is a challenge in multiplayer gaming, but AI-enabled platforms and deep learning ML models are helping to analyze data for prediction and improve matchmaking. GPUs and CPUs are essential for processing power, while real-time AI processing is a key factor in mobile games. Expertise in AI is in demand for developing AI-driven animation techniques and anti-cheat systems. Market growth factors include 5G network, cloud gaming, edge computing, and smart gaming consoles. AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are leading the way in AI-driven gaming innovations. 

Cloud gaming, which allows access to remote server-based games through Internet-connected devices, is gaining popularity due to the rise of social media and mobile gaming. This technology eliminates the need for new hardware or complicated setups, such as game discs, installations, or patches. Grid computing powers the streaming of game content to users via wired or wireless broadband connections. Cloud gaming’s cost-effective pricing structure appeals to non-core gamers, expanding its reach beyond traditional console gaming. The convenience and ease of use make cloud gaming an attractive option for gamers. 

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Market Challenges

The AI in Games market is experiencing significant growth, with advancements in AI-generated content, virtual reality (VR), and augmented reality (AR). Microsoft HoloLens 2 and other AI technologies, such as machine learning and neural networks, are revolutionizing gaming. However, challenges remain, including network latency, processing power, and real-time AI processing for multiplayer gaming and matchmaking. AI-enabled platforms like Euphoria and Realistic physics simulations are improving player behavior and environmental interaction. Market growth factors include cloud-based services, smart gaming consoles, and expertise in AI. Companies like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 are utilizing AI for image upscaling, prediction, and ML models. Future trends include deep learning, data analysis, and AI-driven animation techniques. The market is expected to grow, driven by 5G network, cloud gaming, edge computing, and AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems.The global AI market in games faces a significant challenge due to network latency. This delay between a player’s action and the game server’s response can negatively impact gameplay experiences, particularly in online multiplayer games. Latency is influenced by factors such as internet connection quality, player-server distance, network infrastructure, number of users, and server load. Reducing network latency is crucial for providing optimal gaming experiences and ensuring player satisfaction. Companies in this market must invest in improving network infrastructure and optimizing server performance to minimize latency and enhance the overall gaming experience.

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Segment Overview 

This artificial intelligence (ai) in games market report extensively covers market segmentation by  

TypeAI Enabled PlatformsAI Enabled GamesTechnologyMachine LearningNatural Language ProcessingComputer VisionRoboticsGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaGameActionAdventureCasualRacingSimulationSportsStrategyAI TypeMachine LearningDeep LearningNatural Language ProcessingComputer Vision

1.1 AI enabled platforms-  Artificial Intelligence (AI) platforms are essential collections of tools that facilitate the creation, testing, implementation, and maintenance of deep learning and Machine Learning (ML) models in the gaming industry. AI technology enables machines to execute tasks beyond human capabilities, such as data analysis, prediction, and action-making, more efficiently and accurately. Developers utilize AI platforms to create advanced games, build environments, characters, and plots more rapidly. Additionally, AI’s ability to analyze player behavior and data offers valuable insights into player preferences, leading to customized and engaging experiences. Leading companies like Microsoft and Google are at the forefront of this change, offering AI-driven platforms and tools that are revolutionizing game production. Furthermore, AI is enhancing game realism through AI-powered graphics and ray tracing, resulting in lifelike scenes. Real-time interactions between human gamers and AI-powered virtual characters are also made possible by these platforms. The increasing adoption of AI platforms in the gaming industry will drive the growth of this segment and market during the forecast period.

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Research Analysis

The AI in Games market is revolutionizing the gaming industry by integrating advanced AI algorithms, machine learning, and neural networks to generate and dynamic gaming experiences. AI-generated content includes 3D representations, virtual reality (VR), and augmented reality (AR), enhancing the realism and interaction in games. Microsoft HoloLens 2, with its AI technologies and sensors, leads the way in AR gaming. AI enables prediction and data analysis, reducing network latency and improving gameplay. GPUs and CPUs power AI-enabled platforms, enabling real-time image upscaling and ray tracing for enhanced graphics. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 utilize AI middleware systems like Euphoria to create lifelike characters and environments. Deep learning ML models are used for character behavior and decision-making, adding depth to the gaming experience. AI is transforming 3D games into intelligent, interactive, and experiences.

Market Research Overview

The Artificial Intelligence (AI) in Games market is experiencing rapid growth as developers integrate advanced AI technologies to create more and interactive gaming experiences. AI-generated content, such as 3D representations and realistic physics simulations, is revolutionizing the industry. Virtual reality (VR) and augmented reality (AR) games are utilizing AI algorithms to enhance user experience, with devices like Microsoft HoloLens 2 leading the way. Sensors and AI technologies like machine learning and neural networks are powering these advancements. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 are using AI to improve player behavior and environmental interaction. Network latency is being addressed through AI-enabled platforms and real-time AI processing. Deep learning and ML models are being used for data analysis and prediction, while GPUs and CPUs provide the necessary processing power. Realistic physics simulations, AI-driven animation techniques, and expertises in AI are key market growth factors. Cloud gaming, 5G networks, and edge computing are also driving the market forward. AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are some of the innovative companies leading the charge in this exciting field.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeAI Enabled PlatformsAI Enabled GamesTechnologyMachine LearningNatural Language ProcessingComputer VisionRoboticsGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaGameActionAdventureCasualRacingSimulationSportsStrategyAI TypeMachine LearningDeep LearningNatural Language ProcessingComputer Vision

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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From Connection to Impact: SINBON Electronics Brings the Invisible Links Behind Everyday Life to electronica and SPS 2026

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MUNICH and NUREMBERG, Germany, Oct. 21, 2026 /PRNewswire/ — Every day, millions of people rely on technologies that quietly work together. The data center, the charging station, the hospital and the factory floor are linked more closely than ever, and each depends on the connections that carry power and data between them. SINBON Electronics, a global provider of customized interconnect and system integration solutions, will show how those connections create real impact at electronica 2026 in Munich (November 10–13) and SPS Smart Production Solutions 2026 in Nuremberg (November 24–26). From renewable energy and e-mobility to energy-efficient automation, SINBON’s solutions help customers move toward a low-carbon future.

electronica 2026  |  Munich, November 10-13 

From data centers to hospital wards, and from rooftops to roadsides, SINBON’s solutions sit inside the systems people depend on every day. Customized connectors power AI servers, cabling solutions for solar and energy storage systems help bring clean power to homes and the grid, EV charging cables and battery swapping cabinets keep vehicles and autonomous devices moving, diagnostic imaging cables support accurate scans, and robotics interconnect solutions keep collaborative robots at work. At electronica, visitors will see how each connection leads to real impact, and how, together with its partners, SINBON is turning every connection into a step toward a more sustainable future.

SPS 2026  |  Nuremberg, November 24-26 

At SPS, the focus moves from connections to complete systems. Under the theme “Engineering Connections. Empowering the AI Smart City.”, SINBON will show how its end-to-end solutions, from design to full system integration, keep a smart city running: driving precision and productivity on the factory floor through semiconductor equipment, automation and robotics; supporting construction and agricultural machinery in the field; keeping transportation moving; and managing energy and cooling for the data centers behind AI.

Connections That Last

Since 1989, SINBON has grown from a component specialist into a full solution partner. With operations across Asia, Europe and the Americas, it combines local engineering support with global manufacturing and rigorous quality standards.

Today, SINBON works with customers from the first concept, bringing application engineering, system integration and manufacturing together to turn complex requirements into reliable, scalable solutions. As a sustainable solution provider, it considers environmental impact from the earliest design stage. SINBON now invites more partners to join its problem-solving network because meaningful impact is never created alone.

Visit us at:

electronica 2026

Messe München  |  Hall A3, Booth 341  |  November 10-13, 2026  |  Munich, Germany 

SPS Smart Production solutions 2026

Nuremberg Exhibition Centre  |  Hall 10, Booth 325  |  November 24-26, 2026  |  Nuremberg, Germany 

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Infobip and Yamaha Power Conversational Customer Engagement in Indonesia’s Automotive Sector

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JAKARTA, Indonesia, Oct. 21, 2026 /PRNewswire/ — Global cloud communications platform Infobip strengthens its collaboration with Yamaha Indonesia Motor Manufacturing (YIMM) to transform customer engagement through WhatsApp-powered conversational experiences designed to drive stronger personalization and faster customer interactions.

As Indonesia’s consumers increasingly adopt digital-first purchasing behaviors, Yamaha Indonesia is evolving how it connects with customers across the buying journey. Today’s motorcycle buyers often research products through Yamaha’s social media, websites, and video reviews on YouTube before visiting dealerships, raising expectations for brands to deliver fast, seamless, and highly personalized communication.

For more than two years, Infobip has supported Yamaha Indonesia in building connected customer engagement strategies that integrate WhatsApp across the company’s wider digital ecosystem, including its websites, social media platforms, and customer touchpoints. The collaboration reflects the growing importance of conversational messaging in Indonesia.

With more than 75% of Yamaha Indonesia’s consumers actively using WhatsApp, the platform has become central to the company’s customer communication strategy. Yamaha has also expanded its use of WhatsApp into large-scale public activations such as Pekan Raya Jakarta (PRJ), where thousands of daily visitors scanned QR codes to access interactive WhatsApp experiences. Through these journeys, visitors could complete surveys and profiling questions, participate in gamified activities, and receive prizes, enabling Yamaha Indonesia to better understand customer intent while delivering more engaging and personalized brand interactions.

With Infobip’s technology, expertise, and support, Yamaha Indonesia has enhanced its ability to deliver personalized conversations, improve lead capture and follow-up, support remarketing initiatives, and create more meaningful customer interactions that extend beyond brand awareness to business impact.

“Customer expectations in Indonesia’s automotive market are evolving, particularly around speed, convenience, and personalization. What makes this collaboration impactful is Yamaha Indonesia’s commitment to creating connected experiences across the entire customer journey. Together, we are enabling more dynamic and scalable conversations that help turn engagement into measurable business value,” said Kukuh Prayogi, Enterprise Business Director at Infobip (Indonesia).

“At Yamaha Motor Indonesia, we believe digital engagement should enhance every stage of the customer journey. Working with Infobip has helped us create more connected and responsive communications that meet customers where they are, through the channels they trust most. As customer expectations continue to evolve, this collaboration enables us to stay closer to our customers and deliver experiences that are more relevant, timely, and meaningful,” said Adita, Digital Customer Experience Manager at PT Yamaha Indonesia Motor Manufacturing.

Infobip and Yamaha Indonesia will continue enhancing automation, chatbot experiences, and personalized communication journeys to further elevate customer engagement across Indonesia’s automotive sector.

Learn more about the collaboration on our website: https://bit.ly/4zD1EMc.

About Infobip

Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey, with AI as the driving force of innovation. Through a single, natively built platform, Infobip delivers omnichannel engagement, identity, user authentication and contact centre solutions that help businesses and partners overcome the complexity of consumer communications while driving growth and increasing customer loyalty. Infobip is focused on enabling and accelerating AI adoption as it continues its transformation into an AI-first company. Infobip’s technology has the capacity to reach over seven billion mobile devices in 6 continents connected to 10k+ connections of which 800+ are direct operator connections. The company was established in 2006 and is led by its co-founders, CEO Silvio Kutić and CTO Izabel Jelenić.

Recent recognitions include:

Infobip ranked #16 in Fortune’s Europe’s Most Innovative Companies 2026 (June 2026), up from its inaugural #68 ranking in 2025.Infobip named a Leader in the Gartner® Magic Quadrant™ for Communications Platform as a Service (CPaaS) for the fourth consecutive year. Positioned furthest for Completeness of Vision for the second time (May 2026)Infobip named the number one Established Leader in the Juniper Research RCS for Business 2026 Leaderboard (Feb 2026)Infobip recognized as a growth and innovation leader in Frost Radar™: Communications Platform as a Service (CPaaS) by Frost & Sullivan (Oct 2025)Infobip ranked as the number one Established Leader in the Juniper Research Mobile Messaging Fraud Prevention Market report (Sept 2025)Infobip ranked as a Leader in the Omdia CPaaS Universe Report for the third time (April 2025)Infobip ranked an Established Leader in the Juniper Research Conversational AI Leaderboard (Feb 2025)Infobip named a CPaaS Leader for the third time in the IDC MarketScape (Feb 2025)Infobip named one of the top CPaaS providers in Metrigy’s CPaaS MetriRank Report (Dec 2024)Infobip recognized as the number one provider in the AIT Fraud Prevention market by Juniper Research (Oct 2024)

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Technological Sovereignty Takes Centre Stage as EU Tech Chief Henna Virkkunen Addresses UnitedXR Europe

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European Commission Executive Vice-President Henna Virkkunen joins speakers from SPECS by Snap, Google and Belgium’s imec at Maison de la Poste, 7–9 December, with international delegations confirmed.

BRUSSELS, Oct. 21, 2026 /PRNewswire/ — Who will shape the future of immersive technology, and how much control will Europe have over it? European Commission Executive Vice-President Henna Virkkunen will address European technological sovereignty at UnitedXR Europe this December, as companies, researchers and policymakers gather in Brussels to discuss the industry’s next steps.

Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, will speak on Tuesday, 8 December at 15:00 at Maison de la Poste in Brussels.

Co-produced by AWE and Stereopsia, UnitedXR Europe returns from 7–9 December for three days of talks, an exhibition and the European XR Awards®.

Confirmed delegations from Hong Kong, Portugal, Ireland, the Netherlands, Belgium, four Nordic countries and over 60 other participating countries will bring an international perspective to discussions on how immersive technologies are developed, governed and used.

“Technological sovereignty can sound abstract. For our industry, it comes down to whether European companies can build successful products and have a say in how this technology develops,” said Alexandra Gérard, co-producer of UnitedXR Europe. “That’s why Henna Virkkunen’s participation is so important. We want Europe’s XR community to hear from her directly and take this conversation further in Brussels.”

Building technology people can trust

XR devices can capture information about our movements, surroundings and the people around us. What gets recorded? Who can access it? How is it protected? Developers need answers that give people confidence to use their products and businesses confidence to invest.

Programme highlights include:

Divergent Realities: Ethics, Rights and Social Impacts of XR and Smartglasses — Rob Morgan (Playlines | Wake The Tiger), Alina Kadlubsky (University of Applied Sciences Mittweida, Virtual Technologies Department), John Walker (SURF) and Kelsey Farish (media and technology lawyer). A discussion of the ethical, rights and social questions raised by XR and smart glasses.

Navigating the EU AI Act in Collaborative AI Production: How Do Creators Stay in Control? — Tim Deussen (Studio Deussen, Berlin). A look at the EU AI Act and what creative control means in collaborative AI production.

Building XR for the Business — Matthew Connors (Volvo Group). A session focused on enterprise use cases including security and scalability challenges.

Additional featured speakers include:

Daniel Wagner, SPECS by SnapAnne Bajart, European CommissionPatrick Bourdot, EuroXRSean Ginevan, GoogleProf. Frank Steinicke, University of HamburgThomas Kubski, DeloitteJosé Ferrer Costa, JMIR Publications | UOC | BSALuis Bravo Martins, XR Safety Intelligence – EuropeAndres Martin-Barrio, European Space Agency (ESA-ESTEC)

Explore the agenda

View the speaker lineup

Participating sponsors and exhibitors include SPECS by Snap, PICO, Lureo, Virtual World Association, XR4Europe, XR Valley, ManageXR, Imec, JMIR Publications, ArcelorMittal, Hong Kong Digital Entertainment Association (HKDEA), France Immersive Learning, HTC Vive, Even Realities.

European XR Awards celebrate the year’s creative work

The European XR Awards® shortlist ranges from climate documentaries to survival games, with nominees across nine categories. They include SOLWATA, a mixed-reality experience narrated by Mark Ruffalo about rising sea levels in the Solomon Islands; The Baby Factory is Closed, which explores menopause, identity and colonial medicine; and Bootstrap Island, a VR survival adventure inspired by Robinson Crusoe.

The ceremony takes place on Tuesday, 8 December, from 18:30–20:00 CET on the Main Stage at Maison de la Poste.

Explore the European XR Awards® and full nominee list

Early bird tickets available ahead of 21 October deadline

UnitedXR Europe takes place from 7–9 December 2026 at Maison de la Poste, Brussels.

Early-bird rates expire on 21 October, with three-day All Access passes available for €579 and two-day All Access passes for €479, including 21% Belgian VAT.

Tickets — View passes and register

Programme — Explore the agenda

Media — Apply for a media pass

About UnitedXR Europe

UnitedXR Europe is a conference and exhibition dedicated to augmented, virtual and mixed reality. Co-produced by AWE and Stereopsia in Brussels, it brings together technology companies, businesses, policymakers, researchers and creators to exchange knowledge, build partnerships and advance the development and adoption of immersive technologies. Its programme combines conference sessions, an exhibition, scientific research, creative experiences and the European XR Awards®.

Learn more at unitedxr.eu

Media Contact

Brittany Oat
Lightspeed PR & Marketing
Brittany@lightspeedpr.com

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