Online Games - Ethiopia

Ethiopia

Highlights

In Ethiopia, revenue in the Online Games market market is projected to reach US$19.63m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 7.71%, leading to a projected market volume of US$28.46m by 2029.
Additionally, the number of users in Ethiopia's Online Games market market is anticipated to amount to 13.0m users by 2029.
User penetration in this sector will be 8.1% in 2024 and is expected to increase to 8.9% by 2029.
In a global context, the majority of revenue will be generated China, which is expected to reach US$6.53bn in 2024.
Furthermore, the average revenue per user (ARPU) in the Online Games market market in Ethiopia is projected to be US$1.88 in 2024.
Ethiopia's burgeoning youth demographic is increasingly engaging in online games, signaling a shift towards digital entertainment in the country's media landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Games market in Ethiopia has been experiencing significant growth in recent years.

Customer preferences: Ethiopian consumers are increasingly turning to online games as a form of entertainment. The convenience of playing games on mobile devices has made it easier for people to access and enjoy a wide variety of games. Additionally, the growing popularity of multiplayer online games has created a sense of community and social interaction among players.

Trends in the market: One of the key trends in the Ethiopian online games market is the rise of mobile gaming. With the increasing availability of affordable smartphones and improving internet connectivity, more people are able to access and play games on their mobile devices. This has led to a surge in the number of mobile game downloads and in-app purchases. Another trend in the market is the growing popularity of esports. Esports tournaments and competitions are gaining traction in Ethiopia, attracting a large number of participants and spectators. This has created opportunities for game developers, sponsors, and advertisers to tap into the esports market and reach a highly engaged audience.

Local special circumstances: Ethiopia has a young population, with a large percentage of its citizens under the age of 30. This demographic factor contributes to the growing demand for online games, as young people are more likely to be tech-savvy and interested in gaming. Additionally, the increasing disposable income among the middle class has allowed more people to afford smartphones and internet access, further driving the growth of the online games market.

Underlying macroeconomic factors: The Ethiopian economy has been growing steadily in recent years, with a focus on infrastructure development and investment in the digital sector. This has resulted in improved internet connectivity and access to technology, creating an environment conducive to the growth of the online games market. Furthermore, the government has implemented policies to promote entrepreneurship and innovation in the tech sector, which has attracted local and international game developers to invest in Ethiopia. In conclusion, the Online Games market in Ethiopia is experiencing significant growth due to customer preferences for mobile gaming, the rise of esports, and the country's young population and improving economic conditions. These factors have created a favorable environment for the online games market to thrive and present opportunities for both local and international game developers.

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.