By 2010, the worldwide videogame market is expected to reach $46.5 billion, at an average 11.4% compound annual rate, global consultancy PricewaterhouseCoopers predicts in an article by THE HOLLYWOOD REPORTER.
PwC estimates the filmed entertainment business will grow at a 5.3% compound annual rate, to become a $104 billion market by then and the television business is targeted to grow at a 6.6% rate to $227 billion.
The estimated $8.4 billion U.S. videogame market of 2005 likely will grow at a slower rate than other sectors, at 8.9%, to hit $13 billion in 2010, behind Asia Pacific and Europe, the Middle East and Africa, according to PwC's "Global Entertainment and Media Outlook: 2006-2010."
Asia Pacific should hold the top spot in terms of overall spending on games. The region is expected to grow even faster than the U.S. for the same period, bringing a $9.8 billion market in 2005 to $17.4 billion by 2010, a 12.3% compound annual increase.
Increased broadband access and computer literacy, government spending to promote local game development and consumption will spur the increases in Asia.
EMEA will lead the globe in terms of videogame growth at a 13% compound annual rate through 2010 reaching a $13.9 billion market size, up from $7.6 billion last year.
The only market that the U.S. will beat in terms of industry growth, including Canada, is Latin America where today videogames only amount to $531 million. However, the region is expected to reach $835 million by 2010, which is a 9.5% compound annual gain.
Sales of console and hand-held games (not including wireless or mobile games) should comprise $7.9 billion by 2010, up more than 31% from $6 billion last year.
In terms of game categories, which include console and hand-held, online, wireless and PC games, in the U.S., PwC expects wireless to grow the fastest at 28.6%, growing from $646 million last year to $2.3 billion by 2010.
In the Asia Pacific market, wireless and online games are expected to grow at about the same rate (23% compounded annually) with online games reaching $4.4 billion and wireless reaching $4.2 billion by 2010.