Games module and hardware sum are set to expostulate some-more than $150 billion income for a initial time ever in 2017, with module holding around three-quarters and hardware around one-quarter of a sum (Note: this is games software/hardware sum — non-hardware revenues could broach over $110 billion globally this year). With a devalue annual expansion rate (CAGR) of 7.9 percent for a subsequent 5 years, games software/hardware sum could tip $200 billion by 2021 (as minute in Digi-Capital’s new Games Report and Database Q3 2017).
But not everybody can win, as gaming has incited into a dual speed marketplace — hulk sectors where giants rule, and tiny high-growth sectors where nimble indies can still make their mark.
Bigger than big, stronger than strong
Mobile games have grown like a weed given a launch of a iPhone, and a zone could tip $50 billion income for a initial time in 2017. Yet notwithstanding this out-performance, mobile games expansion could delayed to 14.5 percent CAGR to strech over $80 billion by 2021 (gross apps income opposite iOS, Google Play and all a Chinese app stores). That’s some-more income than a whole games marketplace when we initial lonesome it behind in 2010 (coincidentally, it’s when we initial foresee mobile games’ entrance dominance, that folks suspicion vast behind then).
Console games and MMO/MOBA games should any broach reduction income away than mobile this year, and with negligence expansion could any away expostulate around $30 billion income in 5 years’ time. This could make mobile games bigger than console games and MMO/MOBA games sum by then. The remaining large sectors of PC hardware and console hardware are broadly ex-growth (although Nintendo Switch has given console hardware a large strike this year and competence assistance longer term), though could still expostulate good over $30 billion sum income by 2021.
Small though ideally formed
At a other finish of a scale is a land of a indies, where there’s room for them to breath. There isn’t adequate income nonetheless for a large boys, and this is a small like early mobile games.
VR hardware (headsets, peripherals and PCs/GPUs) could broach in a low singular number billions-range this year, and expostulate over $7 billion income by 2021. But VR hardware is dominated by giants like Facebook and Samsung already, so solutions for specific technical problems are substantially best for startups in this sector.
AR games module – quite mobile AR games – had a initial strike with Pokémon Go (even if attention insiders don’t like to call it AR). If mobile AR goes mass market in a subsequent 12 months (helped by Facebook, Apple, Google and others), AR games module could expostulate roughly $7 billion income in 5 years’ time – some-more than VR games.
Pokémon Go competence have done some-more income than all VR games sum final year, though VR games module still has a lot of runway. With high expansion rates, VR games module could tip $6 billion by 2021.
Esports is a final of a high-growth sectors, though notwithstanding critical investment there are still questions over only how large it could turn in income terms.
China, Japan and South Korea take $4 of any $10 in games this year
Combining a 50 vital countries in a forecasts into regions gives a flattering unchanging picture. Led by China, Asia has dominated games income for a final few years (which we also foresee for a initial time in 2010 to most bemusement), and that prevalence looks set to continue. This year China, Japan, and South Korea alone could broach $4 of any $10 spent on games globally, and together with a rest of Asia-Pacific, it could see only underneath half of all games income globally. By comparison, a North American marketplace could take around a entertain of games income and Western Europe a fifth. In some of a hottest expansion sectors such as VR games, AR games, and esports, Asia has altered from a old-fashioned perspective of it being an importer of Western approaches to apropos a loyal innovator.
Follow a money
The final year has seen a resurgence in games investment, with over $2.8 billion invested globally in a final 12 months to Q2 2017 for a new record. The prior high H2O symbol for games investment was $2.4 billion for full-year 2014. On tip of all that investment, Netmarble Games reopened a games IPO marketplace by lifting a stonking $2.3 billion in a IPO during over $11 billion marketplace cap. Unsurprisingly, investment has been pouring into a top expansion sectors from a forecasts, with AR/VR and games tech/services any holding around one third, and mobile games around a entertain of all investment dollars. Similarly a income has been gratefully perceived by Chinese, American and (in a box of Netmarble) South Korean companies.With a attention attack high scores opposite all a numbers that matter, now’s a time to tell your relatives that operative in games has turn a essential career option.
(You can read some-more in Digi-Capital’s new Games Report and Database Q3 2017, including attention dynamics, zone analysis, 12 zone and 50 country/region marketplace income forecasts, gratefulness comparables and returns, investment, MA and IPO analysis, as good as bundled database with all income forecasts to 2021, over 1,900 investment/MA transactions, and minute gratefulness comparables from 51 publicly listed games companies)
The PC Gaming channel is presented by Intel®‘s Game Dev program.