Games - South Africa

  • South Africa
  • The Games market in South Africa is set to experience significant growth in the coming years.
  • According to projections, the total revenue in this market is expected to reach €115.90m in 2022.
  • This demonstrates a positive trajectory for the industry.
  • Furthermore, the Games market is projected to display an annual growth rate of 8.60% (CAGR 2022-2027).
  • This growth is anticipated to result in a market volume of €166.90m by 2027.
  • These numbers indicate a promising future for the Games market sector in South Africa.
  • Delving deeper into the revenue breakdown, it is estimated that in-app purchases (IAP) will generate €65.01m in 2022.
  • Additionally, paid app revenue is projected to reach €4.43m and advertising revenue is expected to reach €46.45m in the same year.
  • These figures highlight the diverse revenue streams within the Games market.
  • In terms of user engagement, the number of downloads in the Games market is projected to reach 443.80m downloads in 2022.
  • This showcases the popularity and widespread adoption of gaming in South Africa.
  • Finally, when comparing global markets, it is interesting to note that in China generates the highest revenue in the Games market, reaching a staggering €59.65bn in 2022.
  • This highlights the significant role that in China plays in the global gaming industry.
  • Overall, the Games market in South Africa is poised for growth, with increasing revenue, user engagement, and a diverse range of revenue streams.
  • These projections indicate a positive outlook for the gaming industry in the country.

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.

Vue d’ensemble

  • Revenue
  • Market Shares
  • Downloads
  • Users
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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