Games - Saudi Arabia

Saudi Arabia

Highlights

In Saudi Arabia, revenue in the Games market is projected to reach US$2.10bn in 2024.
Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.25%, leading to a projected market volume of US$2.98bn by 2029.
In a global context, the majority of revenue will be generated United States, which is expected to generate US$128.10bn in 2024.
Within the Games market in Saudi Arabia, the number of users is anticipated to reach 7.9m users by 2029.
User penetration in Saudi Arabia will be 18.2% in 2024 and is projected to increase to 19.7% by 2029.
The average revenue per user (ARPU) in this market is expected to amount to US$1.06k.
Saudi Arabia's gaming market is rapidly evolving, fueled by a surge in youth engagement and government initiatives promoting digital entertainment and esports.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Saudi Arabian consumers have shown a growing interest in video games and mobile gaming. This can be attributed to several factors, including the increasing availability of smartphones and the rising popularity of eSports. Additionally, the young population in Saudi Arabia has a strong affinity for technology and digital entertainment, which has further fueled the demand for games.

Trends in the market: One of the key trends in the Saudi Arabian Games market is the shift towards mobile gaming. With the widespread adoption of smartphones, more and more consumers are turning to mobile devices as their primary gaming platform. This trend is driven by the convenience and accessibility of mobile gaming, allowing users to play games anytime and anywhere. As a result, mobile game revenues have been growing rapidly in Saudi Arabia. Another trend in the market is the rise of eSports. Saudi Arabia has been actively promoting eSports and hosting international tournaments, attracting both local and international players. This has created a vibrant gaming community and increased the popularity of competitive gaming in the country. As eSports continues to gain traction, it is expected to drive further growth in the Games market in Saudi Arabia.

Local special circumstances: Saudi Arabia has a young population, with a significant percentage of the population under the age of 30. This demographic is highly tech-savvy and has grown up with video games as a form of entertainment. As a result, the demand for games in Saudi Arabia is driven by this young and digitally connected population. Furthermore, the government of Saudi Arabia has been actively supporting the development of the Games industry. Initiatives such as the establishment of gaming hubs and the organization of gaming events have created a favorable environment for the growth of the industry. These efforts have attracted both local and international game developers, leading to an increase in the availability of games in the market.

Underlying macroeconomic factors: The strong economic growth in Saudi Arabia has also contributed to the development of the Games market. As the economy continues to diversify and expand, consumers have more disposable income to spend on entertainment, including video games. This has created a favorable market environment for game developers and publishers, leading to increased investment in the industry. In conclusion, the Games market in Saudi Arabia is experiencing significant growth, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards mobile gaming, the rise of eSports, the young population, government support, and strong economic growth are all contributing to the development of the market. As these trends continue, the Games market in Saudi Arabia is expected to further expand in the coming years.

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.