Gaming is more popular than ever in all parts of the world, but the market for gaming accessories still saw widespread sales declines last year and into 2023. Is this a long-term trend? Or will this market recover - and if so, how quickly?
In most gaming categories, sales jumped in 2020 and 2021 as people upgraded their home entertainment during the lockdowns. However, that changed last year. Gaming accessories saw a decline as shoppers reacted to the rising cost of living and declining economic confidence. They held back on new purchases and did not yet see the need to upgrade newly purchased products.
The trends impacting gaming accessories over the next 2 years
However, gaming remains a market with potential growth. Not only do we expect the number of gamers in general to continue to increase over the next few years, but sales of gaming accessories also have growth potential. Unlike other consumer electronics, gaming accessories are less expensive, so consumers will continue to buy them to better equip themselves.
As a group, gamers also tend to spend more money on their devices than other shopper groups, which contributes to higher margins and sales. As many consumers reduce the number of purchases they make, they are looking to make the ones they do make count. As a result, they are likely to focus their spending on "affordable premium" products that offer a better experience, whether through exceptional performance, additional features or simplified set up.
We have already seen this trend in gaming mice bought last year. Shoppers have been choosing increasingly to buy cordless and Bluetooth mouse designs that offer wire-free experience and are easier to carry. As the prices of cordless and Bluetooth models continue to drop, and new premium features and designs emerge – such as optical switches - we are likely to see their share of the market continue to grow.
Source: GfK Market Intelligence, Sales Tracking, Global
General trends are not enough. What’s the specific growth forecast for 2024?
Broad trends are simply not enough. To make strong strategic decisions, it’s vital to have accurate, long-term sales forecasts for specific product groups. Without a reliable forecast of future market development, any major investment is a big risk.
To minimize this risk, you need a tool that can make these predictions with a high level of accuracy – and that’s exactly what we have developed.
Take the German market for gaming headsets, for example. Our Scenario Forecasting shows the best-case and worst-case scenario for each quarter for this market over the next 2 years. For the full year 2024, for example, we forecast a best-case growth of 1.9% and a worst-case decline of -8.6% (compared to 2023).
Source: GfK Scenario Forecasting
How can we be this accurate, this far out?
It requires much statistical as well as content expertise to be able to deliver this level of accuracy for two years in advance forecasts. To achieve this, we have developed a sophisticated algorithm that enriches our point-of-sales tracking data with important local variables, including macro indicators (GDP, inflation, unemployment, etc.) and consumer indicators (e.g. consumer confidence trends, mobility reports, etc.). Our tool is customizable – meaning that we take into account factors that are important to you and include them in our modelling. We also take into account important qualitative aspects from our GfK market expertise.
Would you like to find out what the sales of your own categories will look like in the next 2 years?
