Market Size of Chinese Gaming Industry
| Study Period | 2022 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 66.13 Billion |
| Market Size (2029) | USD 95.51 Billion |
| CAGR (2024 - 2029) | 7.63 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Gaming Market Analysis
The Chinese Gaming Industry is expected to grow from USD 66.13 billion in 2024 to USD 95.51 billion by 2029, at a CAGR of 7.63% during the forecast period (2024-2029).
China is one of the most lucrative markets for the gaming industry. Several international companies are entering the market by acquiring shares from Chinese gaming vendors or sponsoring professional players' teams. One of the primary reasons for the growth of the gaming industry in China is the rapidly rising popularity of eSports, a competitive part of the gaming industry where various players participate in gaming competitions. The entire game tournament is broadcasted online.
With Chinese enterprises ready to embrace business opportunities provided by global digitalization, companies across the region are leveraging digital transformation throughout the product cycle, especially to enhance their production efficiency. For instance, Tencent Games announced seven projects in June, including game technology collaboration. These consist of the digital Great Wall of China, the Library Cave of Dunhuang, the Beijing Central Axis, the Chasing All Transients Constellation Hunters (CATCH) program, Full Flight Simulator (FFS), 3D full-fidelity digital factory, and a game-driven robot intelligent learning project.
The rapid growth in mini-games played inside mobile apps, such as WeChat, without installing another application, is witnessing the rapid adoption of China's gaming industry. These mini-games, which have active social elements, are easy to play and have attracted many followers across the country.
The modernization of cable networks is also a potential driver of China's gaming market growth. With the adoption of DOCSIS 3, which achieves download speeds as high as 100 Mbps, cable operators offer high-performance cloud gaming services in China.
Additionally, the increasing prevalence of cloud infrastructure provides abundant computing, storage, and communication resources in a reliable, cost-effective, and low-maintenance manner. Various gaming applications will employ these cloud computing resources, as gaming services stand to be one of China's fastest-growing sectors for cloud computing.
The impacts of COVID-19 resulted in in-game delays and scope scale-downs expected to prevent the console gaming sector from witnessing the same gains as a mobile platform. COVID-19 ravaged China, but businesses whose infrastructure is based on online ad sales and in-game purchases were hit less (source Lyndon Gaming). But the pandemic has fundamentally shifted how much revenue ad sales and in-game purchases bring in. Chinese game designers are adjusting their monetization models to lessen the impact on their revenue streams.
