Online Games - South Africa

South Africa

Highlights

In South Africa, revenue in the Online Games market market is projected to reach US$85.90m in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.80%, which will result in a projected market volume of US$113.90m by 2029.
By 2029, the number of users in the Online Games market market in South Africa is anticipated to amount to 7.5m users.
User penetration is forecasted to be 11.1% in 2024 and is expected to increase to 11.8% by 2029.
In a global context, the majority of revenue will be generated China, with a figure of US$6.53bn in 2024.
The average revenue per user (ARPU) in the Online Games market market in South Africa is projected to amount to US$12.73 in 2024.
In South Africa, the online games market is witnessing a notable rise in mobile gaming popularity, driven by increasing smartphone accessibility and internet connectivity.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Games market in South Africa has been experiencing significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Africa have been shifting towards online gaming due to the increasing availability of high-speed internet connections and the growing popularity of mobile devices. South Africans are increasingly looking for convenient and accessible forms of entertainment, and online games provide a convenient way to relax and have fun. Additionally, the social aspect of online gaming, such as multiplayer options and online communities, has also contributed to its popularity among South African consumers. Trends in the market have also played a significant role in the growth of the Online Games market in South Africa. The rise of esports, which involves competitive gaming at a professional level, has gained traction in the country. This has led to an increase in the number of tournaments and events, as well as the development of a professional gaming ecosystem. Furthermore, the availability of digital distribution platforms, such as Steam, has made it easier for South African gamers to access a wide range of games, including international titles. Local special circumstances have further fueled the growth of the Online Games market in South Africa. The country has a young population, with a large percentage of the population under the age of 35. This demographic is more likely to be tech-savvy and interested in gaming, contributing to the demand for online games. Additionally, South Africa has a growing middle class with increasing disposable income, which has allowed more people to afford gaming devices and spend money on online games. Underlying macroeconomic factors have also played a role in the development of the Online Games market in South Africa. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has allowed more South Africans to invest in gaming devices and accessories, as well as spend money on online games. Furthermore, the government has recognized the potential of the gaming industry and has implemented policies to support its growth, such as providing tax incentives for game developers and investing in internet infrastructure. In conclusion, the Online Games market in South Africa has been growing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As more South Africans embrace online gaming as a form of entertainment, the market is expected to continue its upward trajectory in the coming years.

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.