Market Insights Advertising & Media Media

Games - China

China

Revenue in the Games market in China is projected to reach €114.60bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.57%, leading to a projected market volume of €172.90bn by 2029.
In a global context, the majority of revenue will be generated United States, with the same figure of €114.60bn in 2024.
Within the Games market United States, the number of users is anticipated to reach 894.7m users by 2029.
User penetration United States is forecasted to be 54.8% in 2024 and is expected to increase to 62.8% by 2029.
The average revenue per user (ARPU) United States is expected to amount to [arpu_firstmarket_yeartoday].
China's gaming industry continues to evolve, with increased government regulation driving companies toward innovative, culturally relevant content that resonates with domestic audiences.

Key regions: United Kingdom, Germany, India, United States, South Korea

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Analyst Opinion

The Games market in China has been experiencing significant growth in recent years, driven by a combination of factors such as the increasing popularity of mobile gaming, the rise of eSports, and the growing middle class with higher disposable incomes.

Customer preferences: Chinese consumers have shown a strong preference for mobile gaming, with the majority of gamers in China playing games on their smartphones. This can be attributed to the widespread adoption of smartphones in the country, as well as the convenience and accessibility of mobile gaming. Additionally, Chinese gamers are increasingly interested in eSports, which has led to the emergence of professional gaming teams and the organization of large-scale eSports tournaments.

Trends in the market: One of the key trends in the Chinese Games market is the dominance of free-to-play (F2P) games with in-app purchases. This business model has become extremely popular in China, as it allows gamers to play for free and only pay for additional in-game items or features. This has led to the rise of "whales," a term used to describe gamers who spend large amounts of money on in-app purchases. As a result, game developers are focusing on creating engaging and addictive games that encourage players to make in-app purchases. Another trend in the Chinese Games market is the increasing popularity of multiplayer online battle arena (MOBA) games. MOBA games, such as League of Legends and Honor of Kings, have gained a massive following in China, attracting millions of players and generating significant revenue. This trend can be attributed to the competitive nature of Chinese gamers and their desire to showcase their skills in online battles.

Local special circumstances: China has strict regulations on the gaming industry, particularly when it comes to content and monetization. Game developers are required to obtain approval from the State Administration of Press and Publication (SAPP) before launching their games in China. This approval process can be time-consuming and challenging, as the SAPP has strict guidelines on content that is deemed inappropriate or harmful to Chinese society. Additionally, the Chinese government has implemented restrictions on the amount of time minors can spend playing online games, in an effort to combat gaming addiction among young people.

Underlying macroeconomic factors: The growth of the Games market in China can be attributed to several macroeconomic factors. Firstly, the rising middle class in China has led to an increase in disposable incomes, allowing more people to afford gaming devices and in-app purchases. Secondly, the widespread adoption of smartphones in China has made gaming more accessible to the general population. Lastly, the Chinese government has been actively promoting the development of the gaming industry, recognizing its potential as a driver of economic growth and job creation. In conclusion, the Games market in China is experiencing significant growth, driven by customer preferences for mobile gaming and eSports, as well as the rise of F2P games and MOBA games. However, the market is also subject to strict regulations and restrictions imposed by the Chinese government. Overall, the growth of the Games market in China can be attributed to the increasing popularity of gaming among Chinese consumers, as well as the favorable macroeconomic factors in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Games market, which is divided into Physically Sold Video Games and Digital Video Games. Physically Sold Video Games comprises revenues associated with in-person purchases of video games in retail stores. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.