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This review presents a short version of the study. You can get the full version by contacting news@json.tv

 

 

The global gaming market

 

According to J'son and Partners Consulting, the global games market by 2021 will amount to almost $130 billion, showing an average annual rate of growth in the period 2016 - 2021 at 5.4%.

 

It should be noted that over the past 3 years the structure of the global gaming market segments have changed. In 2013 a large proportion of the market accounted for the gaming PC market (almost 40%), and 37% were for the segment of consoles, while in 2016 the segment of mobile games became the largest segment generating revenues of 36.9 billion dollars, which corresponds to 37% of the total global gaming market. That is, in 2016, revenues in the mobile segment for the first time exceeded income from the gaming segment on personal computers. In the period under review, the mobile games segment showed a tremendous growth rate: in 2013-2016 CAGR growth rate for smartphones was 28.4%, and for tablets 26.9%.

 

Source: J’son & Partners Consulting, NewZoo

 

J'son & Partners Consulting identifies the following key development indicators of the world market of games:

  • the market volume in 2016 increased by 8.5% and reached 99.6 bln dollars. According to the forecast the world market size will reach $ 130 billion by 2021 (CAGR in 2016-2021 will amount 5.41%);
  • over the past 3 years the structure of the global games market has changed: in 2016, driven by such "gaming blockbusters" as Pokemon Go and Clash Royal, the mobile segment became the largest, with a profit of 36.9 billion dollars (37%), outrunning the consoles segment. In the next 5 years the world market will remain active dynamics of the mobile segment growth, the CAGR will be 9.7% for tablets and 12% for smartphones;
  • by the end of 2016, the leading region in the global gaming market is the Asia-Pacific region with a market share of 47%, while the leading countries are USA and China with combined share of 48%;
  • over the last 3 years the highest rate of growth in the gaming market has been characteristic for: the Middle East and Africa — more than 38% per year, the Asia-Pacific region — 13.5% and Latin America with 12.2%. Europe and America remain important regions of the video game market, however, they are characterized by a very low growth rate;
  • key growth factors for the regions are: the ARPU growth in North America and Europe, the audience growth in the Asia-Pacific region and both the audience and ARPU growth in the middle East, Africa and Latin America.
  • the mobile segment is a leading part of the gaming market in the Asia-Pacific region and the Middle East and Africa — 46% and 50% respectively. However, the fastest growing region in the market of mobile games in the next 3 years will be the South-East Asia, for example, in Indonesia the rate of CAGR growth will be 60,7% in 2015-2016;
  • the games market is the most promising market for the development of virtual reality technology. By the end of 2016, the global VR, AR & Mixed Reality games market amounted to 1.2 billion dollars, by the end of 2020 this figure will increase to 8.8 billion dollars with the dominant role of VR segment;
  • by 2020 there will be 70 million gamers using virtual reality technology in the world; by 2025 their number will amount to 216 million;
  • barriers to the distribution of VR will be: high expenses for game series, the lack of developers with necessary tools and customer base (in addition they have a poor knowledge about VR technology, low level of awareness of the real needs);
  • key sectors of application of VR and AR are: video games (12%), health (6%), engineering (5%), live events (4%), industry (3%) and real estate (3%).

 

 

The Russian gaming market

 

According to J'son & Partners, in 2016 the volume of the Russian market of games was 97.5 billion rubles, showing an average annual growth of 27,68% in the period between 2013-2016. The greatest growth was in the markets of mobile and PC games, which grew 37.2% and 33.3% per year, respectively, MMOG and Social games showed an annual growth of 24.5% and 29.9%, respectively.

 

Source: J’son & Partners Consulting

 

 

J'son & Partners Consulting identifies the following key development indicators of the Russian market of games:

  • the Russian games market volume in 2016 reached 97,5 bln rubles, while CAGR 2013-2016 made up 27.68%;
  • in ruble terms the greatest growth was in the markets of mobile games and PC, their CAGR in 2013-2016 were 37.2% and 33.3%, respectively, and MMOG and social games showed an annual growth of 24.5% and 29.9%, respectively;
  • in dollar terms the situation is quite different: in the period 2013-2016 the CAGR figure for the Russian market was negative (-0.4 per cent), due to the significant depreciation in the economic crisis period and slow return of the volumes to the previous figures, which began in 2016 and finished in 2018;
  • in the next 2 year CAGR for the Russian market of games will be 8.86% in dollars, it is expected that in 2018 the market will return to the pre-crisis positions, amounting to 1,725 billion;
  • mobile and PC games have been able to maintain their position during the crisis 2015, showing a nominal increase of 1%, but all other market segments (console, MMOG and social games) fell by 36%, 18% and 13%, respectively;
  • 2016 marked the return of the pre-crisis positions: mobile and PC games "compensated" their fall (RUB 285.2 billion dollars and of 246.2 billion dollars respectively); the segment of MMOG games got close to its pre-crisis incomes of 534,2 billion dollars; the segment of console games will continue to show small growth in the range of 3-9%, reducing its share in the market;
  • by the end of 2016, nearly 37% of the Russian game market accounted for the MMOG, and the share of mobile games was almost 20%. By 2018, the mobile segment will increase its share to 21%;
  • the main reasons of rapid growth of the mobile games market are the smartphone audience growth (by 2018, nearly 67% of the Russian citizens will use smartphones), the growth of the power of smartphones (due to increased penetration of LTE technology) and the development of the ad model in mobile apps;
  • the emerging VR integration trend might become a turning point in the development of the console gaming segment, however, the high price of equipment and a small number of games still have a negative impact on sales. Therefore, an increasing number of users will “flow” into PC games;
  • in Russia today there are about 170 companies that somehow operate in the field of virtual reality. The games area is a driver of the Russian VR market. The key players here are Fibrum (originally created helmets, now develops different content) and Nival (one of the first companies that created games in virtual reality);
  • among the key VR "institutions" in Russia the following projects should be mentioned: Sberbank "Corporate University", SKOLKOVO (about 20 resident companies which are directly or indirectly related to VR/AR), the Bortnik Fund, the Fund VRTech, AFK Sistema, FRII, RVC, Association of augmented and virtual reality.

 

 

 

Detailed research results are presented in the full version of the report:

 «Research of the global and Russian gaming market, 2016»

 

 

Contents

 

1. Summary: main indicators of the game industry

 

2. Key trends, events and trends in the gaming market (Russia and world)

2.1. Key trends of the gaming market, companies and events that defined its segments in the Russian market in 2016

2.2. The gaming market ecosystem: the government, TV and media, gaming space

2.3. Forecasts for the games market

 

3. Volume, dynamics and structure of the gaming market

3.1. The global gaming market

3.2. The Russian gaming market

 

4. Game audience: dynamics, structure, portrait, features

4.1. Global audience: by key regions

4.2. TOP countries from the key regions: US, China, Japan, Germany, UK, Brazil, Turkey

4.3. Game audience in the Russian Federation

 

 

5. Analysis of the key sales platforms: STEAM, APP STORE, GOOGLE PLAY

 

6. Analysis of the market of eSports and streaming: volume, audience, trends

6.1. World and Russian market of eSports

6.2. Streaming and an overview of the cloud services market games

 

7. Analysis of the market of game devices: smartphones, tablets, PC/Consoles, special devices

 

8. Development structure of the market of video games: major and independent players, interaction and trends

8.1. Business models of online games, value chain

8.2. Development of MMO games

8.3. Development of casual games

8.4. Development of social games

8.5. Marketing of different types of games

8.6. Sales management in online games

8.7. Consumption in online games. Resources and technologies

 

9. Game development: features, approaches

9.1. Game development for consoles

9.2. Game development for PC/Web

9.3. Game development for Mobile phones

 

10. Used technologies and engines: volumes of usage, distribution models and monetization

 

11. Labour market of the gaming industry: specialists in demand, salary size

 

 

LIST OF FIGURES

 

Fig. 1. TOP 10 publishers of mobile games by total income (iOs, Google Play) in the CIS region, Q2 2016

Fig. 2. Dynamics of the global games market in years 2015-2021, $ billion

Fig. 3. Forecast for the global market segments (Mobile, Console, PC), 2015-2021, $ billion

Fig. 4. Forecast for the global games market by region, 2016-2021 $ billion

Fig. 5. Shares of regions in the global mobile games market, 2016, %

Fig. 6. Growth rate of the mobile games market in key regions, 2016, % per year

Fig. 7. Forecast for the global market of games for VR and AR in 2016-2025, $ billion and million users

Fig. 8. Proportion of people planning to buy VR products in the next 6 months (America + Europe), April 2016

Fig. 9. Dynamics of the Russian games market in 2012-2018, RUB mln

Fig. 10. Dynamics of the Russian games market in 2012-2018, USD mln

Fig. 11. Dynamics of separate segments of the Russian games market in 2012-2018, USD mln

Fig. 12. Forecast of the Russian games market by segments in 2012-2018, USD mln

Fig. 13. Forecast of the penetration of smartphones in Russia

Fig. 14. Dynamics of expenses on mobile advertising in Russia

Fig. 15. Changes in shares of regions in the total number of game audience in the world, 2013 and 2016, %.

Fig. 16. Population, number of Internet users and game audience in the world in key regions in 2016, mln. people

Fig. 17. Forecast of growth of game audience by segments (Mobile, Downloadable, Online) in 2016-2021., million people.

Fig. 18. Forecast of growth of game audience by regions in 2016-2021, million people.

Fig. 19. Forecast of growth of Downloadable games audience by regions in 2016-2021, million people.

Fig. 20. Forecast of growth of mobile games audience by regions in 2016-2021, million people.

Fig. 21. Forecast of growth of online games audience by regions in 2016-2021, million people.

Fig. 22. Forecast of growth of ARPU on the market by regions in 2016-2021 p., $/year/person.

Fig. 23. Forecast of change of the game audience structure in the U.S. in 2016-2021.: Downloadable, Mobile, Online, million.

Fig. 24. Age structure of the game audience in the U.S. , 2016

Fig. 25. Sex structure of the game audience in the U.S., 2016

Fig. 26. Forecast of change in the age structure of the game audience in the US to 2021, %

Fig. 27. Game audience structure in the United States by age and sex, 2016, mln. people

Fig. 28. The number of active buyers in USA (spend on games more than $25 per month): Mobile, Console, 2015 million people.

Fig. 29. Structure of video games sold in the United States by genre, % of units sold, 2015

Fig. 30. Forecast of change of the game audience structure in China in 2016-2021.: Downloadable, Mobile, Online, million people.

Fig. 31. Age structure of the game audience in Asia and China, 2016, %

Fig. 32. The share of smartphone users in Japan which play games, by age groups, 2016, %

Fig. 33. Average monthly expenditures for mobile games in Japan, 2016, JPY / %

Fig. 34. Frequency of playing games in Germany, 2016

Fig. 35. Dynamics and structure of the game audience in Germany by platforms, million people.

Fig. 36. Sex structure of the game audience in the UK , 2016, %

Fig. 37. Age structure of the game audience in the UK, 2016

Fig. 38. Sex structure of the audience of the games in Brazil, 2016, %

Fig. 39. Age structure of the game audience in Brazil, 2016

Fig. 40. The most popular devices among the game audience of Brazil by sex, % of players, 2016

Fig. 41. Age structure of the Russian game audience (totally, PC, Mobile), 2015

Fig. 42. Structure of Russian gamers by occupation, 2015

Fig. 43. Dynamics of the game audience growth in Russia by segment in 2013-2018, mln.

Fig. 44. Forecast of the number of smartphone users in Russia

Fig. 45. ARPU for mobile games in 2012-2016, $/year

Fig. 46. ARPU for PC games, 2012-2016, $/year

Fig. 47. ARPU for MMOG games in 2012-2016, $/year

Fig. 48. Structure of games on Steam: the number of releases in the years 2004-2016, % and units.

Fig. 49. The share of games in the total revenue of mobile applications Google Play and App Store, 2015-2016, $billion

Fig. 50. Revenue growth in Google Play and App Store in the games segment, 2015-2016, $billion

Fig. 51. Dynamics of the mobile games audience by platform, 2012-2018, million users.

Fig. 52. Dynamics of volume of the Russian mobile games market by platform, 2012-2016, $ million

Fig. 53. Forecast of the global e-sports market in 2016-2019, $million

Fig. 54. Forecast of the global eSports audience in 2016-2019, million people

Fig. 55. Structure of the global eSports market by regions, 2016, %

Fig. 56. Structure of the global eSports audience by regions, 2016, %

Fig. 57. Structure of the global eSports market by source of income, 2016, %

Fig. 58. Dynamics of the Russian smartphones market, 2012-2017, mln. PCs.

Fig. 59. Dynamics of the Russian smartphone market, 2012-2016, bln.

Fig. 60. The share of smartphones in total mobile phone sales (units), 2015-2020

Fig. 61. Dynamics of the Russian tablet market: volume (million units) and average price (thousand/units), 2013-2015

Fig. 62. Dynamics of the Russian market of desktops and laptops, 2013-2015, mln. PCs.

Fig. 63. The global market for game consoles, 2013-2015, mln. PCs.

Fig. 64. The global market for VR devices, 2016-2017, million units.

Fig. 65. Priority business models for MMO games

Fig. 66. Priority business models for casual games

Fig. 67. Priority business models for social games

Fig. 68. Dynamics of the global market of advertising in video games, 2014-2020, $ million

Fig. 69. The main participants of the online games market

Fig. 70. Value chain of MMO games

Fig. 71. Distribution of the margin from the game localization

Fig. 72. TOP countries by number of game development studios

Fig. 73. TOP cities by number of game development studios

 

 

LIST OF TABLES

 

Table. 1. Structure of the global gaming market by segments (Mobile, Console, PC) 2013-2016, $ billion

Table. 2. Structure of the global gaming market by region, 2013-2016, $ billion

Table. 3. Key countries in the games industry by geographic region — revenues in 2016 and the share of the total market in the region

Table. 4. Volume of the mobile games market in key regions ($billion) and the mobile segment share in the total market (%), 2016

Table. 5. Volume of the mobile games market in Southeast Asia in 2016 and forecast of CAGR for 2015-2019 — TOP 6 countries

Table. 6. Forecast of the global market of VR/AR by application field, 2020-2025 (number of users, revenues)

Table. 7. Structure of the Russian gaming market by segments (Mobile, Console, PC, MMOG, Social) 2013-2016, mln. RUB.

Table. 8. Structure of the Russian gaming market by segments (Mobile, Console, PC, MMOG, Social) 2013-2016, % in money terms

Table. 9. Structure of the Russian gaming market by segments (Mobile, Console, PC, MMOG, Social) 2013-2016, million $.

Table. 10. Structure of the Russian gaming market by segments (Mobile, Console, PC, MMOG, Social) in the years 2013-2016, $ million

Table. 11. Forecast of the Russian gaming market by segments in 2013-2018, %

Table. 12. Game audience in the world, their share in the total population and Internet audience, 2013-2016

Table. 13. Game audience in the world by key regions

Table. 14. Audience of downloadable games in the world by regions: the number, region's share in the world, share of the downloadable games audience in the total number of gamers in the region, forecast of the audience growth, СAGR 2016-2021

Table. 15. Audience of mobile games in the world by regions: the number, region's share in the world, share of the mobile games audience in the total number of gamers in the region, forecast of the audience growth, СAGR 2016-2021

Table. 16. Audience of online games in the world in terms of regions: the number, region's share in the world, share of the online games audience in the total number of gamers in the region, forecast of the audience growth, СAGR 2016-2021

Table. 17. TOP 20 selling video games in the U.S. (number of units), 2015

Table. 18. TOP 10 iOS games in the U.S. (by revenue and number of downloads), 2015

Table. 19. Key indices of the game audience in China, 2013 and 2016

Table. 20. TOP 10 iOS games in China (by revenue and number of downloads), 2015

Table. 21. Comparison of game audiences for TOP countries in key regions: US, China, Japan, Germany, UK, Brazil, Turkey, 2016

Table. 22. Key sales indicators of Steam (Valve) in 2016

Table. 23. Steam: TOP-25 games by revenue from sales in 2016.

Table. 24. Steam: TOP-25 games by number of new customers in 2016

Table. 25. Key sales indicators of Steam (Valve) in 2016

Table. 26. TOP e-Sports (prize fund, number of players, number of tournaments), 2016

Table. 27. The Russian market of e-sports: market size and audience, 2016-2018.

Table. 28. Developers of MMO games in Russia

Table. 29. The Russian market of e-sports: market size and audience, 2016-2018.

Table. 30. Prices for age ratings for games in different regions

Table. 31. Game development: console, PC/Web, Mobile (comparison)

Table. 32. Relative position of professions in the gaming industry

Table. 33. Key professions in the gaming industry

Table. 34. Salaries in game development by region, 2017

Table. 35. Salaries in game development by profession, Russia, 2017

Table. 36. Salaries in game development depending on seniority, Russia, 2017

Table. 37. Salaries in game development depending on education, Russia, 2017

Table. 38. Salaries in game development depending on the age, Russia, 2017

 

 

The newsletter was prepared by J'son & Partners Consulting. We make every effort to provide factual and forecast data that fully reflect the situation and are available at the time of the release of the material. J'son & Partners Consulting reserves the right to revise the data after the publication of new official information by individual players.

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