The gaming industry has been deeply affected by cuts and job losses over the last few years, but that won’t stop it from experiencing strong growth in the coming five years. According to a new report from PwC, it’ll top $300 billion in annual revenue by 2028–more than double its takings in 2019.
Released this week, “Global Telecom and Entertainment & Media Outlook 2024–2028” names gaming among the fastest-growing large sectors in the entertainment and media industry. It states that while the pace of this growth “will decline as the segment matures,” gaming will account for 9% of the entire market by 2028.
The report, which considered 53 territories across North America, Europe, the Middle East, Africa, Latin America, and Asia Pacific–around 80% of the world’s population–claimed the superchargers for increased wealth over the next four years are social and casual gaming platforms. These accounted for 68.7% of overall revenue in 2023; they’re predicted to have a 76.4% share by 2028.
PwC says this will reduce traditional gaming’s grip on the industry from 28.6% to 21.4% over the next five years. Even esports and integrated video game advertising–often touted as major moneyspinners in the coming years–will remain “a very small component” of income, not even accounting for 3% of revenue between them by 2028–something the inaugural Esports World Cup, currently underway in Saudi Arabia, undoubtedly aims to transform.
The Asia Pacific–the biggest generator of total video game and esports revenue–will power change. In 2023, the region generated $109.6 billion in revenues (48.1%). By 2028, PwC believes it will account for $181.8 billion (54.4%). Markets continue to emerge; while Japan and China remain gamer havens, the company highlights Indonesia and Pakistan as key nations for growth.
Industry revenue is conventionally characterized by game purchases and subscriptions, but PwC says in-game advertising will become more prominent. In-app social and casual gaming revenue is predicted to jump from $82.9 billion to $147.9 billion by 2028, while in-app games advertising revenue will rise more slowly, from $72.4 billion to $106.6 billion.
PwC cites the rumored 2025 release of the Nintendo Switch’s successor as a key driver, alongside “investments in new products, new technologies and new business models.” Younger demographics will continue to drive targets, with the company noting how Disney and Epic Games are now working together to combine Fortnite with the Star Wars, Marvel, and Pixar franchises.
