A new report by gaming market researcher Newzoo sheds light on the current state of revenue. According to the firm, mobile games revenue will account for more than 50 percent of global games market in 2018.
Mobile games are dominating
The latest quarterly update of Newzoo’s Global Games Market Report points out the incredible growth of the mobile games segment. While the market in total is projected to bring in $137 billion in 2018, mobile revenues are expected to account for more than half that.
According to Newzoo, the overall market will grow by about 13 percent year-over-year. That equates to $16.2 billion. Of the total $137 billion, mobile games should account for $70.3 billion, console games for $34.6 billion, and PC games for $32.9 billion.
Over the last 10 years, the mobile gaming segment has continuously seen double-digit growth. This started with the release of the first iPhone in 2007, says Newzoo. The projected $70.3 billion in mobile games revenue is split between smartphones with $56.4 billion (80 percent) and tablets with $13.9, or (20 percent).
Games market to reach $180 billion by 2021
The latest Newzoo report also includes a multi-year revenue growth projection for the industry. The firm expects revenue to grow with a compound annual growth rate (CAGR) of 10.3 percent between 2017 and 2021. This would bring the overall market revenue to $180 billion by 2021.
That’s a remarkable development. What’s even more remarkable is the development of the mobile gaming segment.
While that area accounted for about 18 percent of the total market in 2012, it is expected to explode in the next few years. Currently projected to account for 51 percent this year, this dominance should grow even further, reaching 59 percent by 2021.
Asia-Pacific region will dominate; North America second
When it comes to the geographical split, Newzoo predicts the Asia-Pacific region will be first by a mile. It should account for over 50 percent of the global market revenue in 2018. Newzoo anticipates the North American region coming in second ($32.7 billion estimated).
As for the individual countries, China will lead the way this year with $37.9 billion (27 percent). The United States is expected to finish second, accounting for $30.4 billion (22 percent). Japan, although relatively small compared to the other two, should end up third at $19.2 billion (14 percent).