China to be Overthrown as World’s Largest Gaming Market in 2019

The global games market report by NewZoo, a leading company in Gaming and Esports Analytics discusses the general trends of the 2019 global gaming market. The report shows that compared with last year, one of the most prominent changes is that the United States is expected to become the largest gaming market globally, with a total revenue of $36.9 billion.

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According to the report, mobile gaming (smartphone and tablet) remains the largest segment in 2019, generating revenues of $68.5 billion and accounting for 45 percent of the global game market. Of all mobile game revenues, 80 percent, or $54.9 billion, come from smartphone games, with tablet gaming accounting for the remaining $13.6 billion.

According to Newzoo’s speculation, the market share of mobile gaming is expected to reach 49 percent in 2022, with further shrinkage of browser game and PC games.

China’s decrowning in the gaming market is mainly driven by the licensing freeze that lasted for six months starting in March 2018. Tons of new games failed to go online, which literally terminated the development for China’s gaming for over half a year.

In 2018, the top 35 public game companies generated $114.0 billion, compared to $100.2 billion in 2017. Despite setbacks due to the licensing freeze, Tencent remained the top company, with revenues of $19.8 billion and year-on-year growth of 9 percent. “The company is hoping to offset this in 2019 by monetizing its PUBG Mobile user base through new title Game for Peace.”

On the 2019 first quarter top gaming list on App Store and GooglePlay by Sensortower, Tencent‘s Honor of Kings generated the top revenue of all, with PUBG Mobile in 10th place. Netease‘ Fantasy Westward Journey made it up to the 8th slot.

A major trend is that Chinese manufacturers are accelerating their pace of overseas expansion, replicating domestic practices and achieving remarkable grades. They have become the driving force of the global mobile gaming market.