Cinema - GCC | Statista Market Forecast

Cinema - GCC

GCC

Highlights

In the GCC, revenue in the Cinema market is projected to reach US$954.80m in 2024.
The revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.12%, which will result in a projected market volume of US$1.23bn by 2029.
By 2029, the number of viewers in the Cinema market within the GCC is expected to amount to 14.3m users.
User penetration in this market will be 19.8% in 2024 and is expected to increase to 22.4% by 2029.
The average revenue per viewer in the GCC is expected to reach US$79.77.
In a global context, the majority of revenue will be generated the United States, which is projected to reach US$20.98bn in 2024.
The GCC cinema market is experiencing a renaissance, fueled by increased investment in local productions and a growing appetite for diverse storytelling.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema market in GCC has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in the GCC region have shown a growing interest in cinema as a form of entertainment. This can be attributed to several factors, including the increasing popularity of Hollywood and international films, the desire for a unique and immersive experience, and the availability of state-of-the-art cinema technology. Additionally, the younger population in the region has shown a particular affinity for cinema, with many considering it a preferred leisure activity.

Trends in the market: One of the key trends in the GCC cinema market is the rapid expansion of cinema chains and multiplexes. This can be attributed to the increasing demand for cinema experiences and the willingness of investors to capitalize on this opportunity. As a result, more cinemas are being built in major cities across the region, offering a wider range of movie options and enhanced amenities such as luxury seating, 3D screens, and IMAX theaters. Another trend in the market is the focus on local content. GCC countries have recognized the importance of promoting their own film industry and have taken steps to support local filmmakers. This has resulted in the production of more regional films and an increase in the number of theaters screening these films. The growing popularity of local content has not only contributed to the overall growth of the cinema market but has also fostered a sense of cultural identity among GCC audiences.

Local special circumstances: The GCC region has a unique socio-cultural landscape that has influenced the development of the cinema market. One of the key factors is the high disposable income of the population, which allows for spending on leisure activities such as cinema. Additionally, the region's hot climate and limited outdoor entertainment options have further contributed to the popularity of cinema as an indoor recreational activity. Furthermore, the GCC countries have made significant investments in infrastructure development, including the construction of modern shopping malls and entertainment complexes. These venues often include cinema theaters as a key component, attracting both local residents and tourists. The presence of cinemas in these multi-purpose facilities has created a one-stop entertainment destination, further driving the growth of the cinema market.

Underlying macroeconomic factors: The GCC region has experienced strong economic growth in recent years, driven by factors such as oil revenues, government investments, and diversification efforts. This has resulted in increased consumer spending power and a higher standard of living, which in turn has contributed to the growth of the cinema market. Furthermore, the region's young and growing population has created a large consumer base for cinema, with a significant portion of the population falling within the target demographic. In conclusion, the Cinema market in GCC is experiencing significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The expansion of cinema chains, the focus on local content, and the availability of modern entertainment venues have all contributed to the development of a thriving cinema market in the region. With the continued support of governments and the increasing demand for cinema experiences, this trend is expected to continue in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. 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.