There is no denying that the Global Gaming Revenue is turning into a bit of a cash cow. Every day, there are more and more free-to-play games that are loaded with microtransactions, and the price of buying a console and a selection of games is going up. That’s inflation for you, yet despite their grievances, gamers are adapting to the current situation.
Based on these trends, it was recently anticipated that the gaming business could soon reach epic proportions, with revenue expected to reach over $300 billion by 2027.
Global Gaming Revenue:
According to PwC’s Global Entertainment & Media Outlook 2024-28, released today, the global entertainment and media (E&M) industry has continued to grow in 2023 despite economic headwinds, technological disruption, and increased geographic and industry competition. Total revenues rose 5% in 2023 to US$2.8 trillion, outpacing overall economic growth cited by the IMF.
According to the projection, which spans 53 countries and territories and 11 revenue divisions, worldwide E&M revenues are expected to reach $3.4 trillion in 2028, rising at a compound annual growth rate (CAGR) of 3.9%.Global ad revenue is expected to reach $1 trillion.
Global ad revenue is expected to reach $1 trillion:
Above all, advertising income is expected to reach $1 trillion in 2026 and will rise at a rate of over half (55%) of the entire revenue growth in the E&M industry during the next five years.
The outlook indicates that streaming services, which have historically relied on subscription models, are facing challenges in consumer uptake and use due to increased competition. In order to drive growth, these services are looking to consolidate, leverage live sports (including major events like the Summer Olympics), crack down on password sharing, and implement ad-based models.
Global advertising revenue is predicted to expand at a compound annual growth rate (CAGR) of 6.7% by 2028, outpacing the other two large E&M areas examined: connectivity (2.9%) and consumer (2.2%). Meanwhile, overall advertising income is expected to reach $1 trillion by 2026 (with sales in 2028 more than doubling those in 2020). According to the three major E&M segments studied, advertising is expected to account for 55% of overall E&M industry growth over the next five years.
As live events and international film are rebounding, the gaming business stands out:
The largest and fastest-growing segment of the advertising industry is internet advertising. With $52.5 billion in new sales, it expanded by 10.1% in 2023. It is expected to grow at a compound annual growth rate of 9.5% through 2028, when it will represent 77.1% of all ad spending.
With total revenue reaching $227.6 billion in 2023, up 4.6%, global gaming—which includes e-sports, or competitive gaming with professional tournaments and live spectators—kept maintained its reputation as one of the largest and fastest-growing industries in the E&M space. Revenue is expected to reach $300 billion by 2027, about twice as much as it did in 2019. Gaming’s largest regional market is still Asia-Pacific, which accounts for 48.1% of the worldwide industry and is expected to grow to 54.4%, or $181.8 billion, by 2028.
Within E&M, live music and movie theaters continue to be important growth sectors for in-person, real-life, tech-enabled experiences. In fact, movie box office and music ticket sales will account for 38.6% of the global net increase in consumer spending in 2023. Over half of the music market was made up of live music, with revenues rising 26% and being driven by major events like world tours of musicians.
