Global games market forecast to be worth $140bn in 2018, $180bln in 2021


Global games market forecast to be worth $140bn in 2018, $180bln in 2021

Newzoo, a leading provider of market intelligence into the gaming sector, projects that 2.3 billion gamers across the world will spend nearly $140bln on digital games in 2018. An increase of 13.3% over 2017. Mobile gaming increases its lead as largest segment, with a projected growth of 25.5% to $70bln, meaning half of all games revenue comes from the mobile segment. Console gaming and PC gaming are pretty even, raking in $35bln and $33bln respectively. Also see the below chart from Newzoo.

They have also done a projection of the growth in the market, up to 2021. Newzoo expect a CAGR of +10.3%, implying the games market will see a turnover of approximately $180bln in 2021. If this projection is reached, the CAGR since 2012 will be 11%, a pretty spectacular feat. The below chart also shows the breakdown per sector.

This projection has the CAGR of Mobile over 2012-2021 at a whopping +26.8%, implying Mobile gaming will be a $100bln dollar market by 2021, or nearly 60% of the total gaming market. An interesting observation is that there is hardly any cannibalization of the PC and Console segments.

In breaking down the geography of spending, Newzoo finds that China alone will account for over a quarter of global revenues, with a spend of $38bln, of which 61% comes from mobile, growing to 70% by 2021.

All in all, most of the money is spent in Asia-Pacific, namely a projected $71bln for 2018. This is a 17% increase over the year. Most of the growth was in Mobile; $9.7bln, to a total of $45bln in 2018. Newzoo states that APAC is the primary driver of continued growth in the games industry, as the number of smart phones rises and rises, and consumers are more willing to spend on mobile games, especially in China and Japan.

source here


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