The study by market research firm DFC Intelligence predicts that the industry will grow by almost $20 billion (£12bn) over the next five years, spearheaded by digital distribution.
"Digital distribution, already widely accepted among core gamers globally, is clearly broadening access to products and driving much of the industry growth," said DFC Intelligence CEO David Cole.
DFC also tipped the PC to become the most lucrative platform by 2017, bringing in 39% of the total revenue. The firm pointed to the success of titles such as Diablo 3, Minecraft and League of Legends as evidence.
Console titles are expected to provide 36% of the total revenue and mobile titles to contribute 25%, but Cole downplayed the significance of browser and social games.
"The bottom line is, core gamers spend money on products they like and right now the game offerings on sites like Facebook are simply not appealing to that demographic," he added.
The games industry made $52 billion (£33bn) in 2011.