Market Insights Advertising & Media Media

Games - Europe

Europe

Revenue in the Games market is projected to reach €67.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.76%, resulting in a projected market volume of €98.73bn by 2029.
In global comparison, most revenue will be generated in China (€119,600.00m in 2024).
In the Games market, the number of users is expected to amount to 309.3m users by 2029.
User penetration will be 32.0% in 2024 and is expected to hit 36.7% by 2029.
The average revenue per user (ARPU) is expected to amount to [arpu_firstmarket_yeartoday].

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

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Analyst Opinion

The Games market in Europe has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the key customer preferences driving the growth of the Games market in Europe is the increasing popularity of online and mobile gaming. With the widespread availability of high-speed internet and the proliferation of smartphones, more and more people are turning to digital platforms for their gaming needs. This shift in customer preferences has led to a surge in demand for online multiplayer games, mobile gaming apps, and virtual reality experiences.

Trends in the market: A major trend in the Games market in Europe is the rise of esports. Esports, or competitive video gaming, has gained a massive following in recent years, with professional tournaments drawing millions of viewers both online and in-person. This trend has led to increased investment in esports infrastructure, such as dedicated arenas and training facilities, as well as the emergence of professional esports teams and players. The growing esports industry has not only created new opportunities for game developers and publishers but has also contributed to the overall growth of the Games market in Europe. Another trend in the market is the increasing popularity of indie games. Indie games, developed by small independent studios or individual developers, have gained a devoted following in Europe. These games often offer unique and innovative gameplay experiences, catering to niche audiences and providing an alternative to mainstream titles. The rise of digital distribution platforms, such as Steam, has made it easier for indie developers to reach a wider audience, further fueling the growth of this segment in the market.

Local special circumstances: Europe is a diverse region with a rich cultural heritage, and this diversity is reflected in the Games market. Different countries in Europe have their own unique gaming preferences and traditions. For example, countries in Northern Europe have a strong tradition of strategy and simulation games, while countries in Southern Europe have a preference for sports and racing games. These local preferences and cultural influences contribute to the overall diversity and vibrancy of the Games market in Europe.

Underlying macroeconomic factors: The growth of the Games market in Europe is also supported by underlying macroeconomic factors. The European economy has been experiencing steady growth in recent years, leading to increased consumer spending power. This has translated into higher demand for entertainment products, including video games. Additionally, the availability of affordable and high-quality internet infrastructure in most European countries has made it easier for people to access and engage with digital gaming content. In conclusion, the Games market in Europe is experiencing significant growth due to customer preferences for online and mobile gaming, the rise of esports, the popularity of indie games, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that new trends and opportunities will emerge, further driving the growth of the Games market in Europe.

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.