Video game market revenue is expected to reach $111bn by 2015, rising from $79bn in 2012 and $93bn in 2013, according to a report from Gartner.
The market included video game console hardware and software, online, mobile and PC games.
According to the report, the growth is expected to be driven by strong mobile gaming and video game consoles as well as software sales.
The report expects the mobile games to become the fastest-growing segment with two times growth in revenue to $22bn in 2015 from the estimated $13.2bn in 2013.
Gartner research director Brian Blau said as mobile devices continue to grow, the mobile game category will show the biggest growth due to the entertainment value provided by games compared with other app categories.
"This growth is fueled by healthy premium mobile device sales globally and a desire by consumers to play games on these multifunction devices that are capable of displaying increasingly sophisticated game content," Blau said.
During 2013, video game companies like Sony, Microsoft and Nintendo are releasing their new consoles, which are expected to be affect by the increasing popularity of the mobile devices.
"Sony and Microsoft are releasing their game consoles in November and pent-up demand for these new consoles has caused a temporary reduction in game console hardware sales during 2013, but growth will resume during 2014 and sales of existing console hardware are forecast to grow from $15.9bn today to $22.7bn in 2015."
In stark contrast, dedicated game handheld devices and traditional PC games will play a smaller role in the game market and cease to be important game platforms."
The report expects decline in the market for PC games, due to the shift from PCs to other devices as tablets are expected to replace the PCs in households.
"Moving forward, game developers will need to constantly deliver compelling games as the growth of content and platform choices drives game players in divergent directions."