The Video Gaming Industry is now estimated to be worth $159.3 Billion in 2020, which is a sizeable increase of 9.3% from 2019. This is a marked difference in what was predicted for the industry with 2016 statistics forecasting a total worth of $90.07 Billion for the same period – a huge 76.8% difference between the two figures. Current forecasts estimate the video gaming industry to be worth $268 Billion by 2025.
The biggest areas of growth are in Latin America and APAC which are expected to grow by 10.3% and 9.9% respectively when compared to 2019’s revenue figures. APAC is expected to be worth approximately $78 Billion in 2020 with China expected to contribute $40.9 Billion of consumer spending on gaming and the USA just under that with $36.9 Billion.
Sources: Statista, NewZoo
Global Games Market
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The video games market is worth
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APAC continues to hold the majority share of the video game industry revenue, accounting for 48% of the market in 2020, with North America holding second place with a much lower share of 19%. In terms of individual countries, China is leading the way, followed closely by the USA. Japan comes in at a respectable third place, and then numbers drop dramatically as South Korea, Germany, and the UK follow up.
Sources: NewZoo, Statista, RList
Over the last decade, we have seen a clear upwards trend in sales of DLC in video games. In fact, the DLC market value increased by 121% between 2010 – 2017, and this trend is predicted to continue to rise. This has been further illustrated with the ongoing rise of gamers putting money into microtransactions, with almost 50% of gamers having done this in the last year. As the DLC market share rises, the package market falls alongside it; in 2011 it took a solid 80% of market share, falling to just 46% in 2017 and continuing to fall ever since.
Sources: Capcom, The ESA, Statista
PC is still the most popular platform for game developers with 56% developing games for the platform in 2020. When it comes to consoles, Sony is still managing to beat Microsoft in terms of game development focus with 25% of developers focusing on the PS4 over 23% on the Xbox One. This trend continues when we look at next-gen consoles with 11% working on PS5 games over 9% working on Xbox Series X. Despite PC gaming coming top for developers, Mobile gaming is the most popular platform for users with 48% of players now regularly engaging in mobile gaming, and console gaming outperforming PC gaming in terms of the global games market.
Sources: NewZoo, GDC