In its latest report, Newzoo projects that in 2020 video games industry will generate $159.3 billion in revenue, up 9.3 percent from 2019. This will come from 2.7 billion gamers around the world.
The report identifies two significant growth drivers: the increased engagement due to coronavirus lockdowns, and the imminent arrival of next-gen consoles.
While increased engagement and revenues can be seen across all platforms, the biggest surge is happening on mobile. The segment is projected to bring in $77.2 billion by the end of the year, up 13.3 percent from 2019.
2.6 billion people will play games on mobile in 2020. Of those, 38% will be paying players.
Despite the impact of the pandemic on the physical distribution, console gaming will grow 6.8% year on year. More than 729 million players will spend $45.2 billion on console games and hardware.
Finally, 1.3 billion players will play PC games spending $36.9 billion in 2020. The 4.8% year-over-year growth is almost completely down to the lockdown measures.
Geographically speaking, China and the U.S. will account for around 50 percent of the user spend in 2020. However, moving forward, it is emerging markets in Latin America and Asia-Pacific that will be driving growth.
Finally, Newzoo predicts that the industry will continue to grow in the following years and will surpass $200 billion by the end of 2023.