According to the latest China Market Model and Five-Year Forecast Report by Niko Partners, China ‘ s spending on game players will increase by 3.6 per cent to $49.2 billion in 2024. Income will increase to $50.7 billion in 2025, reaching $54.8 billion in 2029, with a compound annual growth rate of 2.2 per cent (CAGR). This growth stems not only from traditional mobility and the promotion of PC games, but also from emerging trends such as the continued prosperity of mini-play, AI-generated content and electronic competition.
According to the report, the number of Chinese game players in 2024 was 722 million, with an average annual consumption (ARPU) of $68 per user. By 2029, the number of players is expected to increase to 753.7 million and ARPU to $73. This increase is mainly due to the influx of young players and increased interest in leisure games among the middle and senior age groups. Although the time limits for regulating games, such as for minors, are still in force, the market maintains user viscosity through quality content and diversity.
The report states that the growth of the Chinese game market has been driven by a number of factors:
Classic game class continues to leadMobile and PC games continue to contribute most of their income through continuous updates and IP extensions as market cores.
High-end game demand growth: High-quality PC games and next-generation hosts (e.g., the projected Nintendo Switch 2) are stimulating high-end game consumption. In 2024, nearly two thirds of the players spent more on PC games than last year.
Mini Game Rise: 84 per cent of players have played mini games, which contribute nearly 10 per cent of market expenditure, reflecting the rapid growth in demand for fragmentation entertainment.
Innovative application of external profit models: Developers are opening up new sources of income through innovative ways of making cash, such as live broadcasts, peripheral goods and a fan economy.
AI technology depth integrationGenerating artificial intelligence is becoming more common in China, 85 per cent of players are aware of the technology and nearly 40 per cent are interested in using AI in the game. At present, 60 per cent of Chinese games studios have adopted AI technology, such as the smart NPC and custom video creation functions that are easily introduced by the Internet in the face of the cold.
ELECTRONIC COMPETITION AND RESPONSE OF ELECTRONIC PROBLEM46.5 per cent of players participate in electronic competitions, and one quarter regularly watch live games, an area that has become a core component of social and recreational activities.
Despite the positive outlook, the Chinese game market continues to face uncertainty and international competitive pressures. Release number approval and anti-dissertation measures may continue to affect the pace of the release of new games. At the same time, there are opportunities for innovation. The number of players finding new games through short video services is 44.5 per cent, indicating the growing importance of new distribution channels. The report recommends that developers focus on user-generated content and cross-platform experiences to capture market opportunities of 750 million players.
