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Artificial Intelligence (AI) in Games Market to Grow by USD 27.47 Billion (2025-2029), Rising Adoption of AR and VR Games Fuels Growth, Report on AI Evolution – Technavio

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NEW YORK, Jan. 24, 2025 /PRNewswire/ — Report on how AI is driving market transformation – 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..

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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). AI algorithms, machine learning, and neural networks bring 3D representations to life on platforms like Microsoft HoloLens 2, using sensors for experiences. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 use AI technologies for realistic physics simulations, player behavior, and environmental interaction. Real-time AI processing, multiplayer gaming, and matchmaking require significant processing power, with GPUs and CPUs driving advancements. Market growth factors include AI-driven animation techniques, 5G network, cloud gaming, and edge computing. Expertise in AI, ML models, and data analysis enable prediction and anti-cheat systems in mobile games. Market leaders like AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are shaping the future of gaming with AI-enabled platforms, deep learning, and real-time AI processing. 

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. Users can enjoy streaming video games from the web via cloud gaming services, available for free or through paid subscriptions. This technology eliminates the need for new hardware or complicated setups, such as game discs, installations, or patches. Grid computing facilitates content delivery to gamers via wired or wireless broadband connections. Cloud gaming’s cost-effective pricing structure attracts non-core gamers, expanding its reach beyond traditional console gaming. 

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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). Challenges include integrating AI algorithms for 3D representations in VR and AR, as well as real-time AI processing in 3D games. Microsoft HoloLens 2 and sensors are key technologies driving this trend. AI technologies, including machine learning and neural networks, are used for image upscaling, player behavior analysis, and environmental interaction. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 utilize AI-driven animation techniques and realistic physics simulations. Network latency is a challenge for multiplayer gaming, requiring AI-enabled platforms and deep learning ML models for prediction. Market growth factors include expertise in AI, 5G network, cloud gaming, and edge computing. Companies like AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are leading the way in AI in Games. Processing power, real-time AI processing, and anti-cheat systems are crucial for mobile games. AI-driven animation techniques and prediction models require significant GPU and CPU power. Realistic physics simulations and player behavior analysis require high processing power and real-time AI processing. Market growth is expected to continue as AI technologies become more accessible and affordable.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, particularly in online multiplayer games. Latency is influenced by various factors, including internet connection quality, player-server distance, network infrastructure, player numbers, and server load. These elements contribute to the overall network latency, which can significantly affect the user experience. Minimizing latency is crucial for providing an optimal gaming experience and maintaining player satisfaction.

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Segment Overview 

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

Type 1.1 AI enabled platforms1.2 AI enabled gamesTechnology 2.1 Machine learning2.2 Natural language processing2.3 Computer vision2.4 RoboticsGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and AfricaGameAI Type

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 technologies enable machines to execute tasks beyond human capabilities, such as data analysis, prediction, and action-taking, more efficiently and accurately. Developers leverage AI platforms to create advanced games, build environments, characters, and plots more rapidly. Additionally, AI’s ability to analyze player behavior and data provides valuable insights into player preferences, leading to more personalized and engaging experiences. Key players in this sector, like Microsoft and Google, are driving the industry’s transformation with their advanced AI-driven platforms and tools. Furthermore, AI is revolutionizing game graphics through AI-powered ray tracing and graphics, creating lifelike scenes previously unachievable. Real-time interactions between human gamers and AI-controlled characters are also made possible by AI platforms. The increasing adoption of AI platforms in gaming is expected to fuel the growth of the AI platforms market in the forecast period.

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Research Analysis

The AI in Games market is revolutionizing the gaming industry by introducing advanced AI-generated content, enhancing the experience in 3D games. AI algorithms, machine learning, and neural networks are at the core of this innovation, powering virtual reality (VR) and augmented reality (AR) experiences on platforms like Microsoft HoloLens 2. Sensors and AI technologies enable more realistic interactions, while AI-enabled platforms predict player behavior and optimize gameplay. Ray tracing and image upscaling further improve visual quality. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 utilize AI middleware systems such as Euphoria for lifelike character behaviors. Network latency is being addressed with advanced AI models, and GPUs and CPUs are being optimized to handle the computational demands of AI gaming. Data analysis and prediction are essential components of this evolution, ensuring personalized and engaging gaming experiences.

Market Research Overview

The Artificial Intelligence (AI) in Games market is experiencing rapid growth as developers integrate advanced AI algorithms, machine learning, and neural networks to create more and interactive gaming experiences. AI-generated content, such as 3D representations and realistic physics simulations, is revolutionizing 3D games across Virtual Reality (VR) and Augmented Reality (AR) platforms. Microsoft HoloLens 2 and other sensors are enabling more advanced AI technologies, including ray tracing and deep learning, to enhance the gaming experience. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 are utilizing AI to improve player behavior, environmental interaction, and prediction. The market is driven by the increasing processing power of GPUs and CPUs, real-time AI processing, and the growth of AI-enabled platforms. Multiplayer gaming, matchmaking, and anti-cheat systems are also benefiting from AI, as is the emergence of cloud gaming, edge computing, and 5G networks. Expertise in AI, ML models, and data analysis is becoming essential for game development, leading to the rise of AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems, among others. Market growth factors include the increasing popularity of AI-driven animation techniques, network latency reduction, and the integration of AI in mobile games.

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 AfricaGameAI Type

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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ST Engineering iDirect and MBSat Partner to Build Next-Generation Sovereign Connectivity Services Across Oman and the Middle East

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2 hours ago

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October 25, 2026

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Intuition ground system selected to support MBSat’s planned 2027 service launch, enabling accelerated deployment, dynamic resource management and scalable service growth

HERNDON, Va., Oct. 25, 2026 /PRNewswire/ — ST Engineering iDirect today announced a strategic partnership with Mohammed Al Barwani Satellite Company (MBSat), part of Mohammed Al Barwani Group, to provide the ground system technology foundation for MBSat’s next-generation satellite gateway and network operations across Oman and the wider Middle East region. Intuition will provide a flexible, software-defined foundation to support sovereign connectivity services, enabling efficient service deployment, dynamic resource management and scalable network operations.

Intuition will deliver a turnkey ground segment solution that accelerates deployment, simplifies operations and gives MBSat the flexibility to scale services as demand grows. The software-defined platform enables dynamic resource management, service automation and seamless integration with existing and future operational systems. The solution also includes Ka-band gateway infrastructure, service provisioning and management capabilities, open API integration frameworks, training and full-lifecycle support. Together, these capabilities will help MBSat launch and operate services efficiently while adapting to evolving market requirements.

The network will leverage capacity from MB Sat-1, a sovereign MicroGEO satellite, with planned service launch in 2027, to support flexible, scalable connectivity services across the region.

The partnership reflects growing investment in sovereign communications infrastructure across the Middle East as operators seek greater control over service delivery, network expansion and long-term technology evolution.

“This partnership represents an important milestone in our efforts to build an advanced satellite communications platform in Oman and the region,” said Ammar Al Rawahi, General Manager, MBSat. “Through our collaboration with ST Engineering iDirect, we are establishing the technical infrastructure required to launch services efficiently, respond to evolving customer needs and expand into new markets, supporting the sustainable long-term growth of our business.”

“We are providing MBSat with a flexible, software-defined ground platform that integrates with its existing operational environment,” said Sridhar Kuppanna, Chief Executive Officer, ST Engineering iDirect. “This enables more efficient service deployment and operations today, with the flexibility to scale, introduce new capabilities and evolve as requirements change.”

About ST Engineering iDirect

ST Engineering iDirect, a subsidiary of ST Engineering, is a global leader in satellite communications, providing technology and solutions that enable its customers to expand their business, differentiate their services and optimize their networks. Through its portfolio of ground infrastructure, intelligent networking and advanced satellite communications solutions, the company supports operators, service providers, governments and enterprises worldwide.

View original content to download multimedia:https://www.prnewswire.com/news-releases/st-engineering-idirect-and-mbsat-partner-to-build-next-generation-sovereign-connectivity-services-across-oman-and-the-middle-east-302918467.html

SOURCE ST Engineering iDirect

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ST Engineering iDirect and MBSat Partner to Build Next-Generation Sovereign Connectivity Services Across Oman and the Middle East

Published

2 hours ago

on

October 25, 2026

By

Intuition ground system selected to support MBSat’s planned 2027 service launch, enabling accelerated deployment, dynamic resource management and scalable service growth

HERNDON, Va., Oct. 25, 2026 /PRNewswire/ — ST Engineering iDirect today announced a strategic partnership with Mohammed Al Barwani Satellite Company (MBSat), part of Mohammed Al Barwani Group, to provide the ground system technology foundation for MBSat’s next-generation satellite gateway and network operations across Oman and the wider Middle East region. Intuition will provide a flexible, software-defined foundation to support sovereign connectivity services, enabling efficient service deployment, dynamic resource management and scalable network operations.

Intuition will deliver a turnkey ground segment solution that accelerates deployment, simplifies operations and gives MBSat the flexibility to scale services as demand grows. The software-defined platform enables dynamic resource management, service automation and seamless integration with existing and future operational systems. The solution also includes Ka-band gateway infrastructure, service provisioning and management capabilities, open API integration frameworks, training and full-lifecycle support. Together, these capabilities will help MBSat launch and operate services efficiently while adapting to evolving market requirements.

The network will leverage capacity from MB Sat-1, a sovereign MicroGEO satellite, with planned service launch in 2027, to support flexible, scalable connectivity services across the region.

The partnership reflects growing investment in sovereign communications infrastructure across the Middle East as operators seek greater control over service delivery, network expansion and long-term technology evolution.

“This partnership represents an important milestone in our efforts to build an advanced satellite communications platform in Oman and the region,” said Ammar Al Rawahi, General Manager, MBSat. “Through our collaboration with ST Engineering iDirect, we are establishing the technical infrastructure required to launch services efficiently, respond to evolving customer needs and expand into new markets, supporting the sustainable long-term growth of our business.”

“We are providing MBSat with a flexible, software-defined ground platform that integrates with its existing operational environment,” said Sridhar Kuppanna, Chief Executive Officer, ST Engineering iDirect. “This enables more efficient service deployment and operations today, with the flexibility to scale, introduce new capabilities and evolve as requirements change.”

About ST Engineering iDirect

ST Engineering iDirect, a subsidiary of ST Engineering, is a global leader in satellite communications, providing technology and solutions that enable its customers to expand their business, differentiate their services and optimize their networks. Through its portfolio of ground infrastructure, intelligent networking and advanced satellite communications solutions, the company supports operators, service providers, governments and enterprises worldwide.

View original content to download multimedia:https://www.prnewswire.com/news-releases/st-engineering-idirect-and-mbsat-partner-to-build-next-generation-sovereign-connectivity-services-across-oman-and-the-middle-east-302918467.html

SOURCE ST Engineering iDirect

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Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event

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9 hours ago

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October 24, 2026

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RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.

During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.

GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.

The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.

Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.

Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.

Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.

Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.

He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.

SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.

The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.

Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.

Registration for participants from within and outside the Kingdom is available at gsts.sa.

Click here to view the media kit. 

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