Market Insights Advertising & Media Media

Games - South Africa

South Africa

Revenue in the Games market in South Africa is forecasted to reach US$1,256.00m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 7.23%, leading to a projected market volume of US$1,781.00m by 2029.
When compared globally, the majority of revenue will be generated in China (US$128.90bn in 2024).
Within the Games market, the number of users is projected to reach 21.2m users by 2029.
User penetration is set to be 30.0% in 2024 and is projected to increase to 33.1% by 2029.
The average revenue per user (ARPU) is expected to be US$627.00.
South Africa's gaming media market sees a surge in local content creation, catering to the diverse cultural landscape and increasing demand for homegrown entertainment.

Key regions: United Kingdom, Germany, India, United States, South Korea

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Analyst Opinion

The Games market in South Africa has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in South Africa have shifted towards digital gaming, with an increasing number of consumers opting for online and mobile gaming platforms.

This can be attributed to the rising popularity of smartphones and the improved internet connectivity across the country. Additionally, the convenience and accessibility of digital gaming have attracted a wider audience, including casual gamers and individuals who may not have previously engaged in traditional gaming activities. Trends in the market indicate a growing demand for multiplayer and online gaming experiences.

This is evident through the increasing number of gaming communities and esports events in South Africa. The competitive nature of multiplayer games and the ability to connect with gamers from around the world have contributed to the popularity of this trend. Furthermore, the emergence of virtual reality (VR) and augmented reality (AR) technologies has also sparked interest among South African gamers, as they seek more immersive and interactive gaming experiences.

Local special circumstances in South Africa have played a role in shaping the Games market. The country has a young and tech-savvy population, with a high proportion of individuals under the age of 35. This demographic is more likely to be engaged in gaming activities and to have the disposable income to invest in gaming hardware and software.

Additionally, the increasing availability of affordable gaming consoles and accessories has made gaming more accessible to a wider range of consumers. Underlying macroeconomic factors have also contributed to the growth of the Games market in South Africa. The country has experienced steady economic growth in recent years, which has resulted in an increase in disposable income for many consumers.

This has allowed individuals to allocate more of their budget towards leisure activities such as gaming. Furthermore, the growing middle class in South Africa has led to an expansion of the consumer base for the Games market, as more individuals are able to afford gaming consoles and other gaming-related products. In conclusion, the Games market in South Africa is experiencing growth due to changing customer preferences towards digital gaming, the emergence of multiplayer and online gaming experiences, local special circumstances such as a young and tech-savvy population, and underlying macroeconomic factors such as economic growth and a growing middle class.

As these trends continue to develop, the Games market in South Africa is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Games market, which is divided into Physically Sold Video Games and Digital Video Games. Physically Sold Video Games comprises revenues associated with in-person purchases of video games in retail stores. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.