Games - China

China

The Games market in China is expected to achieve a remarkable milestone in 2022, with projected total revenue reaching €59.65bn.
This impressive figure signifies the significant growth and potential of the gaming industry in the country.
Looking ahead, the market is anticipated to display a steady annual growth rate (CAGR 2022-2027) of 7.46%, resulting in a projected market volume of €92.01bn by 2027.
Within the Games market, in-app purchase (IAP) revenue is projected to reach €24.62bn in 2022.
This revenue stream highlights the popularity of in-game purchases among Chinese gamers.
Additionally, paid app revenue is expected to reach €0.14bn in 2022, indicating a willingness among users to invest in premium gaming experiences.
Advertising revenue also plays a significant role in the Games market, with projections indicating it will reach €34.89bn in 2022.
This revenue stream demonstrates the effectiveness of advertising within games as a means of monetization.
Furthermore, the number of downloads in the Games market is projected to reach an astounding 50.88bn downloads in 2022.
This high download volume underscores the immense popularity and demand for gaming content among Chinese consumers.
When considering the average revenue per download, it is currently expected to amount to €1.17.
This metric provides insight into the monetization potential of each download in the Games market.
In a global comparison, in China stands out as the leader in gaming revenue generation, projected to account for €59.65bn in 2022.
This highlights the country's dominant position and lucrative market segment within the gaming industry.

Key regions: Europe, India, United States, South Korea, Asia

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Analyst Opinion

Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

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 case market dynamics change.