According to market surveys, while the worldwide game sector is worth of 137.9 billion dollars it may increase to 180.1 billion dollars by 2021.
Considering the last years, it appears to be a very favorable development and the main reason for this is especially the fast development of the game platforms in smartphones. The estimated worth of mobile games is 70.3 billion dollars that is to say approximately 51% of the sum total. Also, it’s expected to be in the percentile of 59 with 106.4 billion dollars by 2021. According to Newzoo’s estimations, there are 2.3 billions of players all around the World.
In 2018, the worldwide game market was expected to grow by 13.3%-16.2% billion dollars and reach 121.7 billion dollars providing growth after the last year. When market sales are considered, %91 of this is made by digital sales and there has been worth of 125.3 billion dollars games exist in digital platforms.
According to Newzoo’s statement, passing into 2018 from 2017, total mobile incomes were expected to reach at 70.3 billion dollars by increasing 25.5%. This means that for the first time more than 50% of the market’s income was provided from mobile games. At this point, while smartphones have generated approximately 80% that is to say 56.4 billion dollars of income, tablets have generated percentile of the remaining 20 that is to say 13.9 billion dollars of income.
In the general market, second place was console games’ in 2018 by earning 34.6 billion dollars and leaving behind computes games’ earnings of 32.9 billion dollars.
The prediction for 2021 is representing compound annual growth rate (CAGR) of 10.3% per-year that will happen between 2017 and 2021
When we look at the global game market of 2012, the winnings were 70.6 billion dollars and now this 10 years of CAGR (2012–2021) is seen as 11%. Keeping the growth rate at numbers of double-digit is something noteworthy. Double-digit growth rates are generally seen in individual companies. However, it’s surprising to see that in a sector which exists for a long time.
During these 10 years, mobile games which will come out of the smallest bracket of 2012 will become an industry worth 100 billion dollars in 2021. Another important thing is that the increase in mobile games took console and computer games down in a big way.
Computer and console games have been showing fixed growth for the last couple of years. This year console games generated an income of 34.6 billion dollars and now have 25% bracket in the market. On the other hand, computer games appear to be in the smallest part of the market with 24% and 32.9 billion dollars of income.
Downloadable and packaged computer games’ CAGR is estimated to increase by 4.2% from 2017 to 2021 and generate 32.3 billion dollars of income.
According to Newzoo’s expectations, interaction with PC games will increase. One of the biggest reasons for this will be competitive games and e-sports. Only a particular part of this will be able to become a big earning due to some reasons.
Some big and popular games became almost completely paid-service now and at the same time occurrence of this kind of a game is not expected.
In addition to this, the decrease in prices of “pay and play” options in PC games and so the decrease in earnings of PC games is lowering the general growth.
According to Newzoo’s expectation, if the publishers keep on developing in-game payment option and don’t cut prepaid money, the increase may continue. Moreover, console games will be enclosing streaming and e-sports by 2021 and it will increase interaction with gamers. Newzoo’s prediction for the future is console games’ increase to 39 billion dollars income and also increase CAGR by 4.1%.
Japan game market, on the other hand, remaining its third place worldwide with growth at 15.1% rate, reached 19.2 billion dollars level. This means Japan’s mobile game market is 1/3 much as North America’s players. Japan players, compared to other countries, spend more money on especially mobile games. A Japan player’s average spending is 1.5 times higher compared to a North American player and 2.5 times higher compared to a West European player.
Also, China singly is meeting a quarter of worldwide game incomes. This amount is expected to reach 37.9 billion dollars within the year. Mobile games, on the other hand, is dominant power and 61% of the income in 2018 is made up of mobile games. It’s expected to reach 70% level in 2012.
Asia-Pacific regions generate 71.4 billions dollars of earning in the game market and this corresponds to 52% of the worldwide earnings. This represents 17% of growth from year to year and almost all of it occurs in the mobile game sector. This part is expected to grow by 9 billion dollars from year to year.
Asia-Pacific regions are one of the main growth factors of the worldwide game industry. The increasing number of smartphone users in these regions is the biggest reason for this. Especially in India and Southeast Asia, this growth continues very fast. At the same time, Chinese and Japan markets which are more settled for spending are contributing to growth.
North America, on the other hand, appears to be the second biggest region. In North America where 32.7 billion dollars of income was generated in 2018, income rates are expected to increase by 10% from year to year. The large part of the growth is expected to happen in smartphone games and small-scale console games.
This growth is seen in Europe and the Middle East-Africa market as well and due to this reason, the total of these two regions’ appear to increase to 28.7 billion dollars in 2018. In European countries, players are not eager to pay for mobile games as much as American players do. Averagely, an American player pays 1.6 times more money to mobile games compared to a European player. However, this condition is offset by a steadily increasing number of smartphones in the Middle East and Africa. In Latin America, this seems to have generated 5 billion dollars of income.
Refernce1:https://venturebeat.com/2018/04/30/newzoo-global-games-expected-to-hit-180-1-billion-in-revenues-2021/
Reference2:https://newzoo.com/insights/articles/global-games-market-reaches-137-9-billion-in-2018-mobile-games-take-half/
