PwC report predicts Australian gaming and esports market to grow by 7% a year

While may sectors have struggled during the Coronavirus pandemic, a new report from global consultants PwC has shown that the gaming and esports sector has prospered this year with the market expected to grow 7% each year over the next four years.

PwC’s newly released Australian Media and Entertainment Outlook report forecasts that the interactive gaming and esports market will grow from $3.18 billion in 2019 by a 6.87% CAGR to 2024, based on a midpoint scenario.

This growth is driven largely by app-based games and esports, with mobile gaming revenue accounting for 31.7% of total video games consumer revenue in 2019.

The report advises “higher smartphone ownership (though this market is now essentially saturated), more capable devices, and better monetisation strategies have all contributed to greatly increased revenue from mobile games, but the phase of rapid expansion is coming to an end.”

Australia’s esport revenue was $5 billion in 2019, up from $1 billion in 2015, and is forecast to reach $8 billion by 2024. Esports became increasingly popular during the pandemic as an alternative to in-person events, with livestreams such as the V8 Supercars All Stars Eseries.

Click here to view the Australian Media and Entertainment Outlook report.