The Games Market Will Grow by 2.1% to Reach $196.8 Billion in 2022

The Games Market Will Grow by 2.1% to Reach $196.8 Billion in 2022

The esports and gaming sector is among the fastest growing industries in the world. Recent forecasts by data firm Newzoo predict there will be 3.2 billion gamers worldwide in 2022, that’s over a third of the global population. The industry is expected to generate over US$196 billion this year, gaining 2.1 per cent from 2021.

Despite rapid growth during the pandemic years, the sector has slowed in recent months, with companies posting mixed second quarter results in the US. The slowdown comes as many gaming firms contend with supply chain delays, and a shift in consumer choices due to easing lockdowns.

Analysts and industry experts, however, are confident the sector will continue to grow above pre-pandemic levels, pointing to the launch of delayed titles and an easing of parts shortages as tailwinds in the short-term.

Data firm Newzoo says games market revenues are still growing, despite supply chain issues, global economic challenges and the return of non-home leisure spending. Some segments of the market, however, are stronger than others.

The primary driver of revenue growth across the world’s games market is mobile, which will generate revenue of US$103.5 billion this year (53 per cent of the market), an increase of 5 per cent on last year.

Meanwhile, the personal computer market is expected to increase by 1.6 per cent to US$40.4 billion, but console games will decline 2.2 per cent to US$52.9 billion.

Newzoo forecasts global spending on gaming will reach $225.7 billion by 2025, representing a compounded annual growth rate of 4.7 per cent between 2020 and 2025.

Data from streaming platforms such as Twitch, meanwhile indicates both viewers and streamed hours remain above pre-pandemic levels. The trend is reflective of the robust growth in esports, which is providing tailwinds to spending on hardware such as gaming-specific headsets, keyboards and computer chips.

Geographically, the largest proportion of revenue is generated from the Asia Pacific (Japan, South Korea and China), while mobile-first markets such as the Middle East & Africa have advanced the most over the year.

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