China on track to overtake South Korea as No 2 video games market by 2021, says PwC

Within five years China will surpass South Korea to become the second largest video games market in the world with revenue of more than US$26 billion, according to a study by consulting firm PwC.

Total video games revenue in mainland China reached US$15.4 billion last year and will grow at an annual rate of 11.2 per cent to a forecasted US$26.2 billion in 2021, making the country the second-largest market after the US, PwC said on Tuesday.

Cecilia Yau, entertainment and media leader at PwC, said the study examined multiple revenue streams in the sector, ranging from game sales and sponsorship to revenues in streaming.

“Video games revenue started to take off in mainland China around 2015,” she said, “Social and casual games serve as a major boost to growth.”

The report was published in the run-up to Hong Kong’s first ever e-Sport and Music Festival, which will be held from August 4 to August 6.

Hong Kong is expected to see its revenues in the sector grow from US$742 million last year to US$1 billion by 2021, representing a compound annual growth rate of 6.6 per cent. The study shows revenues in video games will surpass those of the newspaper industry in the city by around 2018.