China’s video game market will surpass $55 billion by 2026, according to the latest Niko Partners report. Analysts expect mobile to still account for the vast majority of total revenue, with the number of domestic players reaching 730 million people.

Key takeaways

  • Mobile and PC games revenue in China reached $45.49 billion in 2021, which is up 5.5% year-over-year.
  • The market is expected to grow at a 4% compound annual growth rate over the next five years, reaching $55.23 billion in 2026.
  • Mobile will account for $40.53 billion, or 73.3% of total revenue.
  • According to Niko Partners, there were 706 million games in China last year (down 3.7% year-over-year). This number will grow to 730 million players by 2026.

Image credit: Niko Partners

  • Analysts cite young gamers leaving the market due to restrictions implemented by the Chinese government last year, including cutting playtime in online games for minors to only three hours a week.
  • ARPU (average revenue per user) will grow from $64.4 in 2021 to $75.6 in 2026.
  • In 2021, Chinese game companies reached a total revenue of $17.3 billion overseas across mobile and PC. This number is expected to grow to $26.4 billion by 2026.

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