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The China gaming market size is forecast to increase by USD 22.52 billion at a CAGR of 8.04% between 2023 and 2028. The market is experiencing significant growth, driven by collaborations among companies and government support for the industry. One notable trend is the rise of cloud gaming services, which allow players to access games over the internet without the need for expensive hardware. However, this growth comes with challenges, particularly around data security and privacy concerns. As China's gaming market continues to evolve, companies must navigate these issues to succeed. The Chinese government's commitment to the gaming industry, as evidenced by its support for domestic game developers and the establishment of regulatory frameworks, is a key growth factor. Cloud gaming services, which offer convenience and affordability, are also gaining popularity.
However, data security and privacy concerns, which are increasingly important to Chinese consumers, pose significant challenges for gaming companies operating in the market. To succeed, companies must prioritize these issues and implement security measures to protect user data.
The market has witnessed significant growth in recent years, driven by the popularity of eSports and the rise of international companies in the industry. Professional players' teams and Tencent Games, a leading Chinese gaming company, have been at the forefront of this trend. The Beijing Central Axis, home to many gaming companies, has become a hub for game development and innovation. Mini-games and mobile gaming have been major contributors to the market's growth. Cable operators have also entered the market, offering gaming services as part of their bundled packages. The gaming industry's expansion has led to increased demand for cloud infrastructure, computing, storage, and communication resources.
Moreover, the console gaming sector and mobile platforms have been the two major segments in the market. Mobile games have seen a particular in popularity, with SensorTower reporting that China is the largest mobile gaming market in the world. Tencent, a leading player in the market, has game R&D and cloud hosting services to stay competitive. Overall, the market is expected to continue its growth trajectory, offering significant opportunities for both domestic and international players.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The casual gaming segment is estimated to witness significant growth during the forecast period. The Chinese Gaming Industry has witnessed significant growth, particularly in the eSports sector and the mobile games segment. International companies have shown increasing interest in collaborating with Chinese gaming companies to tap into this vast market. Professional players' teams, sponsored by these companies, have gained immense popularity, attracting large fan bases and lucrative sponsorship deals. Tencent Games, a leading Chinese gaming company, dominates the market with its diverse portfolio, including mini-games, console gaming, and cloud gaming. The Beijing Central Axis, home to many gaming companies, is at the forefront of innovation, leveraging advanced technologies such as cloud infrastructure, computing, storage, and communication resources.
Moreover, the cable operators are also investing in cloud hosting services like Ucloud to deliver high-quality gaming experiences. The mobile platform has become the preferred choice for Chinese gamers, with mobile games accounting for a significant portion of the market. According to SensorTower, the top 100 grossing games in China generated USD 116.16 billion in revenue in 2020. The Chinese gaming industry is also embracing 5G technology, with cloud gaming platforms like CloudUnion, IPTV, Kalydo, and Chi Yu games offering gaming experiences. Microtransactions, DLC, and subscription-based models are popular monetization strategies, while 5G connections enable seamless gaming experiences. The industry's growth is further fueled by the increasing popularity of casual games, which cater to diverse preferences and busy lifestyles.
Furthermore, casual games, including puzzle games, match-three games, endless runners, simulation games, and social casino games, are easily accessible on mobile devices and offer entertainment value to a broad audience. Key players in the Chinese gaming market include Tencent, NetEase, Lilith Games, FunPlus, and Lingxi Games, among others.
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The casual gaming segment was valued at USD 20.12 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising collaboration among companies and government support for gaming is the key driver of the market. The Chinese gaming industry is witnessing significant growth, with eSports and international companies collaborating with Chinese gaming companies to create content tailored to the local market. Partnerships between game developers, and streaming platforms enable the leveraging of each other's strengths, resources, and expertise to produce high-quality games and gaming experiences. For instance, in March 2023, Giant Interactive Group and Baidu AI team collaborated to create China's first AI-developed mobile game character, Space Shark. Baidu's Wenxin large model team was responsible for AI image training, generation, and optimization, while Giant handled overall planning and in-game development. This collaboration marks a step towards a more innovative and efficient gaming business, with potential for improved game experiences and new revenue streams in China.
Moreover, the Chinese gaming market is dominated by companies like Tencent Games, NetEase, Lilith Games, FunPlus, Lingxi Games, and others, who invest heavily in game R&D and cloud hosting services from providers such as Ucloud. The console gaming sector and mobile platform's mobile games segment are key growth areas, with SensorTower's TOP100 list showing that China accounts for over 50% of global mobile game downloads. The Chinese government's support for 5G technology and infrastructure development, including cable operators, cloud infrastructure, computing, storage, and communication resources, is further fueling the growth of the gaming industry. The industry is expected to reach USD 116.16 billion by 2027, with cloud gaming platforms like CloudUnion, IPTV, Kalydo, Chi Yu games, and Speed Kingdom gaining popularity due to their ability to provide high-quality gaming experiences on various devices and 5G connections. Microtransactions, DLC, and subscription-based models are common monetization strategies, with companies like Tencent and NetEase leading the way in implementing these models in their games.
The rise of cloud gaming services in China is the upcoming trend in the market. The Chinese gaming industry has witnessed significant growth, with eSports and international companies expanding their presence in the market. The Beijing Central Axis, a hub for game R&D and innovation, has attracted numerous players in the industry. Cloud gaming services, provided by companies like Ucloud, CloudUnion, Kalydo, and Speed Kingdom, have made gaming more accessible to a broader audience in China. These services enable users to stream games directly to their devices using a stable internet connection, eliminating the need for expensive gaming hardware.
Moreover, this democratization of gaming content has fostered inclusivity and diversity within the gaming community. The mobile platform, including mobile games segment, dominates the Chinese gaming market, with USD 116.16 billion in revenue in 2020. Mini-games and mobile internet, fueled by 5G technology, have contributed to this growth. The console gaming sector also continues to thrive, with cable operators offering subscription-based models and microtransactions, DLC, and in-app purchases driving revenue. Cloud gaming services offer various advantages, including access to a vast library of games, instant access, and compatibility with various devices. Players can enjoy high-quality gaming experiences regardless of their device specifications or location. With the integration of 5G connections, cloud gaming is poised for further growth in China.
Data security and privacy concerns in gaming a key challenges affecting the market growth. The Chinese gaming industry has witnessed significant growth, with international companies and Chinese gaming companies making substantial strides in the sector. The industry encompasses various segments, including eSports, console gaming, and mobile platforms, with the mobile games segment dominating the market. According to SensorTower, China accounted for approximately USD 116.16 billion in mobile game revenue in 2020. Professional players' teams and cable operators have also joined the fray, with some offering cloud infrastructure, computing, storage, and communication resources to enhance gaming experiences. Tencent's Cloud Union, Kalydo, and Speed Kingdom are notable examples of cloud gaming services.
However, the industry's growth is further by the rollout of 5G technology, which offers faster internet speeds and lower latency, enhancing the overall gaming experience. However, the industry faces challenges, including data security and privacy concerns. Gaming companies collect vast amounts of user data, which can be used for game customization, targeted advertising, and user analytics. While this data can be beneficial, it raises concerns about privacy protection and data security. Cybersecurity threats, such as hacking, data breaches, phishing attacks, malware infections, and Distributed Denial of Service (DDoS) attacks, pose a significant risk to gaming companies and their users. Weak security measures and vulnerabilities in gaming platforms can expose players to identity theft, fraud, and financial losses.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BANDAI NAMCO Europe S.A.S: The company offers games under brands such as THREE SEVEN GAMES, 37Online, 37Mobile, 37GAMES and MiaoCode.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The industry has witnessed significant growth in recent years, with eSports emerging as a popular trend. International companies have shown increasing interest in collaborating with Chinese gaming companies to tap into this vast market. Professional players' teams and Tencent Games, a leading Chinese gaming company, have been at the forefront of this industry. The Beijing Central Axis is a significant hub for game development, hosting many Chinese gaming companies such as Lilith Games, FunPlus, Lingxi Games, and Chi Yu Games. The Chinese gaming industry is not limited to console gaming or the mobile platform. Mini-games have gained popularity among cable operators, providing an alternative revenue stream.
Moreover, the use of cloud infrastructure for game R&D and cloud hosting services like Ucloud has become essential for the gaming industry's growth. The mobile games segment dominates the market, with SensorTower's TOP100 list showing that China accounts for over 50% of global mobile game revenue. The mobile internet and the advent of 5G technology have further fueled the growth of the gaming industry, with cloud gaming gaining traction through platforms that have become common monetization strategies.
Market Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.04% |
Market growth 2024-2028 |
USD 22.52 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.12 |
Key companies profiled |
BANDAI NAMCO Europe S.A.S, Beijing Elex Technology Co. Ltd., Electronic Arts Inc., Kunlun Wanwei Technology Co. Ltd., Microsoft Corp., NetEase Inc., Nintendo Co. Ltd., Perfect World Entertainment Inc., SEGA SAMMY CREATION INC., Shanda, Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Virtuos, and 37 Interactive Entertainment |
Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Device
8 Market Segmentation by Platform
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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