The gaming industry has somewhat ahead of many industries: It is almost completely digitalised. The market is growing strongly in all parts of the world and is constantly receiving new impetus from digital technologies. While sales in 2016 were still around USD 100 billion, studies expect them to rise to over USD 170 billion by 20251 or even 20212, depending on the analysis.
The closed eco-systems of computer game hardware are increasingly dissolving. Combatants can already compete in the battle royal blockbuster "Fortnite"3 on consoles and mobile devices4. According to forecasts, the mobile segment will see the strongest growth (see chart).
Global Games Market: Revenues per Segment 2012-2021 with Compound Annual Growth Rates
Source: Newzoo, April 2018 Quarterly Update. Global Games Market Report.
The games manufacturer Epic has announced that it will provide prize money of more than USD 100 million5 - a new dimension in e-sports. A whole ecosystem of virtual accessories has been created and is further fuelled by online games. Technologies such as virtual reality and artificial intelligence can trigger further growth spurts.
Regionally, the Asian market is growing particularly fast - not least due to the good internet connection and the strong sales figures for high-quality smartphones.
About the Author:
Jan Altmann is consultant and contributor to the investment and Fintech industry. He has been instrumental in setting up the ETF business in Europe and worked for many big names as well as small boutiques since then. He provides advice and content about emerging topics like ETF-Investing, digitisation, distribution and industry standards.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.
1Global Gaming Study, Grandviewresearch
2Global Gaming Study, Newzoo
3Fortnite Battle Royale Game
4Epic / Fortnite cross-platform Decision
5Epic devotes 100 mn. USD to combatants