Market Insights Advertising & Media Media

Games - G7

In G7, revenue in the Games market is projected to reach US$226.90bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.32%, which will result in a projected market volume of US$323.00bn by 2029.
In a global context, the majority of revenue will be generated United States, with an estimated US$128.10bn in 2024.
Within the Games market, the number of users in G7 is anticipated to amount to 447.8m users by 2029.
User penetration in G7 will be 50.8% in 2024 and is expected to increase to 57.0% by 2029.
The average revenue per user (ARPU) in G7 is expected to amount to [arpu_firstmarket_yeartoday].
In the United States, the Games in the Media market is increasingly influenced by the rise of streaming platforms that integrate interactive gaming experiences.

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

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Analyst Opinion

The Games market in G7 countries has been experiencing significant growth in recent years, driven by changing customer preferences and technological advancements.

Customer preferences: Customers in G7 countries have shown a strong preference for digital games, with a shift towards online multiplayer games and mobile gaming. This can be attributed to the increasing availability of high-speed internet connections and the widespread adoption of smartphones. Additionally, there is a growing interest in virtual reality (VR) and augmented reality (AR) games, as consumers seek more immersive gaming experiences.

Trends in the market: One of the key trends in the Games market in G7 countries is the rise of esports. Esports tournaments and leagues have gained immense popularity, attracting millions of viewers and generating significant revenue through sponsorships, advertising, and ticket sales. This trend has led to the emergence of professional esports teams and players, creating new career opportunities in the gaming industry. Another trend is the increasing integration of gaming with social media platforms. Many games now offer features that allow players to connect with their friends and share their gaming experiences on social media. This has not only enhanced the social aspect of gaming but also provided a platform for game developers to promote their products and engage with their target audience.

Local special circumstances: Each G7 country has its own unique gaming landscape. For example, in the United States, the market is dominated by console gaming, with popular platforms like PlayStation and Xbox. In Japan, there is a strong preference for mobile gaming and console gaming, with a high demand for role-playing games (RPGs) and strategy games. In Germany, PC gaming is particularly popular, with a focus on simulation and strategy games.

Underlying macroeconomic factors: The growth of the Games market in G7 countries can be attributed to several macroeconomic factors. Firstly, the increasing disposable income of consumers has allowed them to spend more on entertainment, including gaming. Secondly, advancements in technology have made gaming more accessible and affordable, leading to a larger consumer base. Lastly, the strong presence of game developers and publishers in G7 countries has contributed to the growth of the market, as they continue to innovate and release new games that cater to the evolving preferences of customers. In conclusion, the Games market in G7 countries is experiencing significant growth due to changing customer preferences, technological advancements, and underlying macroeconomic factors. The rise of digital gaming, esports, and the integration of gaming with social media are some of the key trends driving the market. Each G7 country has its own unique gaming landscape, influenced by local preferences and market dynamics.

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.