Entertainment - Europe

Europe

The Entertainment market in Europe is expected to witness significant growth in the coming years.
According to projections, the total revenue in this market is set to reach €4.23bn by 2022.
This is expected to be driven by various factors, including the increasing popularity of digital entertainment platforms and the growing number of consumers engaging with entertainment content.
Furthermore, the market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 12.01% from 2022 to 2027.
This consistent growth rate is expected to propel the market volume to €7.80bn by 2027.
In terms of revenue streams within the Entertainment market, in-app purchases (IAP) are projected to contribute significantly, with an estimated revenue of €1,105.00m in 2022.
This highlights the importance of in-app purchases as a revenue driver in the Entertainment market.
Paid app revenue is also expected to play a role in the market's growth, with projected revenue of €6.17m in 2022.
This indicates that consumers are willing to invest in entertainment applications.
Additionally, advertising revenue is projected to reach €3,119.00m in 2022.
This suggests that advertising remains a key source of revenue in the Entertainment market, as businesses continue to leverage advertising platforms to reach their target audience.
The number of downloads in the Entertainment market is anticipated to reach 1.33bn downloads in 2022.
This indicates a high demand for entertainment content among consumers in Europe.
Furthermore, the average revenue per download is currently expected to amount to €3.19.
This metric demonstrates the average revenue generated per download, highlighting the value of each consumer engagement.
In a global comparison, it is noteworthy that in China generates the highest revenue in the Entertainment market, with an estimated €11,520.00m in 2022.
This showcases the significant market potential in China and the opportunities it offers for businesses operating in the Entertainment market sector.

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

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Analyst Opinion

Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

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 case market dynamics change.