China Digital Gaming Market to Expand At 15.4% Till 2023
According to a new report released by Research on Global Markets, the China digital gaming market is expected to expand at a compound annual growth rate (CAGR) of 15.4% and reach a market size of USD 83.79 Bn by 2023.
The censorship board of China places highly stringent rules and regulations on digital gaming. Digital game licenses are not easily obtained, in fact, most gaming licenses get canceled by regulatory bodies because they are considered inappropriate for the mental and physical health of young gamers. Game censorship is therefore extremely common in China as it is believed to stagnate cultural development amongst the youth. This attitude makes the digital gaming market differ in China especially from its Western counterparts. Despite such restraints, China has emerged as one of the most prominent digital gaming markets in the world.
Consoles such as PlayStation, Xbox, Nintendo Wii as well as other traditional consoles are high-definition platforms for digital gaming. The banning of consoles by the government of China has led to a massive increase in personal computer (PC) gaming. The mobile gaming segment has experienced even greater growth owing to the availability of low-cost, high-performance phones which are extremely compatible with most gaming formats. Also, the increase in internet penetration and technological adaptability has led to the development of this market in China.
Check out the Research on Global Markets report featured in this article:
Defining factors such as improved mobile network connectivity across the country, the rise in disposable income and increase in popularity of digital gaming as a source of entertainment have played a vital role in the growth of the China digital gaming market. The digital gaming market can be segmented into three broad categories of PC games, mobile games, and console games. PC games are played using an internet browser and are available for purchase either through online or offline retail channels or they can be downloaded from websites such as Steam and WeGame. PC game enthusiasts are often hard-core fans of digital gaming who play these games on advanced computers. This enhances the quality of the visual experience for gamers which in turn drives market growth. Due to the availability of convenient digital distribution channels for PC games and the immense popularity of digital payment methods, purchasing PC games has now become easy for Chinese gamers.
China-based companies like Tencent and NetEase have garnered the goodwill among consumers as they have better knowledge about consumer tastes and preferences than international companies. This is why the digital gaming market in China is dominated by local players. Key players of the digital gaming market include Tencent, Netease, Kongzhong, Shanda, 37 Interactive and others. Acknowledging and adapting to the changing genre preferences among gamers will prove profitable to gaming companies.
Another major trend observed is the introduction of several new internet cafes that offer luxurious gaming platforms for gaming enthusiasts. These internet cafes provide dedicated spots for professional teams to live-stream their games and for other gamers to watch live matches. This lures potential digital gaming consumers and is expected to propel the China digital gaming market forward in the upcoming years.
Key highlights of the report include:
- Market scope and segmentation
- Market analysis and interpretation
- Different revenue models
- Different game genres
- Value chain of games
- Market overview - Historical (2015–2017) market size (USD Bn), Forecasted (2018–2023) market size (USD Bn)
- Key market observations
- Current market trends
- Market drivers and challenges
- China digital gaming market segmentation – based on platforms
- China market share and size (USD Bn – 2018) – based on platforms (PC games, console games, and mobile games)