Online Games - China

China

Highlights

Revenue in the Online Games market market in China is projected to reach US$6.53bn in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.03%, leading to a projected market volume of US$8.35bn by 2029.
By 2029, the number of users in the Online Games market market China is anticipated to reach 389.0m users.
User penetration China will be 26.4% in 2024 and is expected to increase to 27.3% by 2029.
In a global context, the majority of revenue will be generated China, amounting to US$6.53bn in 2024.
The average revenue per user (ARPU) in the Online Games market market China is projected to be US$17.31 in 2024.
In China, the online games market is increasingly dominated by mobile platforms, reflecting a shift in consumer preferences toward accessible and portable gaming experiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Games market in China has been experiencing significant growth in recent years, driven by various factors such as changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in the Online Games market in China have been shifting towards mobile gaming, with a growing number of consumers opting to play games on their smartphones and tablets. This trend can be attributed to the increasing availability and affordability of mobile devices, as well as the convenience and portability they offer. Additionally, Chinese consumers are increasingly drawn to online games that incorporate social elements, allowing them to connect and interact with friends and other players. This preference for mobile and social gaming has led to a surge in the popularity of multiplayer online games and esports in China. Trends in the market include the rise of esports as a mainstream form of entertainment in China. Esports tournaments and competitions are attracting large audiences both online and offline, with millions of viewers tuning in to watch professional gamers compete. This trend has created new opportunities for game developers and publishers to capitalize on the growing esports market by developing games specifically tailored for competitive gaming. Additionally, the emergence of virtual reality (VR) and augmented reality (AR) technologies is also driving growth in the Online Games market in China, as consumers are increasingly interested in immersive gaming experiences. Local special circumstances in China, such as government regulations and cultural factors, also play a role in shaping the Online Games market. The Chinese government has implemented various regulations to control and monitor the online gaming industry, including restrictions on game content, playtime limits for minors, and approval processes for game releases. These regulations aim to promote a healthy gaming environment and protect the well-being of players, but they can also impact the growth and profitability of game developers and publishers. Additionally, cultural factors such as the popularity of traditional Chinese themes and storytelling in games contribute to the unique characteristics of the Online Games market in China. Underlying macroeconomic factors, such as the rapid growth of the Chinese economy and the increasing disposable income of Chinese consumers, have also contributed to the development of the Online Games market in China. As more people have access to smartphones and the internet, the potential customer base for online games continues to expand. Furthermore, the rising middle class in China has more discretionary income to spend on entertainment, including online games. These macroeconomic factors create a favorable environment for the growth of the Online Games market in China. In conclusion, the Online Games market in China is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards mobile gaming, the rise of esports, the adoption of VR and AR technologies, government regulations, cultural factors, and the overall economic growth in China all contribute to the development and expansion of the Online Games market in the country.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Video Games market. Digital video games are defined as fee-based video games distributed over the internet. These include online games, download games, mobile games, and gaming networks. 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.