According to the latest analysis by Digi-Capital, an investment banking service company of the internationally renowned gaming industry, this year, global gaming hardware and software and total sales will exceed US$150 billion for the first time, with software accounting for approximately 75% of revenue. The analysis also pointed out that in the next five years, the compound annual growth rate of game hardware and software will reach 7.9%, and the market will reach US$200 billion in 2021. Among them, VR games will maintain a relatively high growth rate. It is expected that the revenue in 2021 will reach 6 billion U.S. dollars, while AR games revenue will be close to 7 billion U.S. dollars, which will surpass VR game revenue.
The market for VR hardware (headsets, peripherals, and computers/GPUs) is only a few billion dollars this year, and is likely to reach about $7 billion by 2021. However, the VR hardware market has been dominated by giants such as Facebook and Samsung, so for start-ups, targeting special technical issues in this segment of the market will be the best option.
AR games, especially mobile AR games, first ignited the market under the leadership of Pokemon Go. If mobile AR can enter the mainstream mass market within the next year, AR game revenue will be close to $7 billion over the next five years, surpassing VR games.
Only Pokemon Go's revenue is likely to exceed the sum of all VR games last year, but VR games still have significant development. With rapid growth, VR game revenue will reach 6 billion U.S. dollars by 2021.
From a regional perspective, only China, Japan, and South Korea contributed 40% of the global game spending this year, and game revenue generated by the entire Asia-Pacific region is close to half of the world's total. In contrast, the North American and Western European markets accounted for 25% and 20% of global game revenue, respectively. In many hot areas such as VR, AR games and e-sports, Asia has abandoned the outdated concept and no longer depends on the introduction of technology from Western countries to become a true innovator.
In terms of investment, as of the second quarter of this year, the investment generated by the gaming industry in the past 12 months exceeded US$2.8 billion. About one-third of AR/VR and gaming technology/service industries were obtained, while mobile gaming sector received a quarter of them. In addition, most of the money went to China, the United States, and South Korea.
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