The global games market is projected to reach $189.3 billion in revenue by the end of 2021, supported by a permanent shift in consumer spending habits and a total player base of 2.8 billion people.
Cloud gaming is expected to surpass $1 billion in annual revenue for the first time in 2021, while 5G-ready active smartphones are forecasted to grow from 5% in 2020 to 16% (700 million units) by year-end.
Mobile titles such as PUBG Mobile and Garena Free Fire are increasingly challenging traditional PC giants in esports viewership, marking a significant shift toward mobile-first competitive gaming.
The removal of Apple’s Identifier for Advertisers (IDFA) is disrupting mobile marketing strategies and intensifying industry pressure on traditional app store revenue-share models.
Gaming platforms are evolving into 'metaverse' social hubs for non-gaming events, while industry leaders are increasingly prioritizing diversity, inclusion, and reduced toxicity in response to player demand.
Significant market growth is emerging from Southeast Asia and the Middle East, with the broader industry trajectory defined by platform convergence and the expansion of gaming IP into general entertainment media.
This analysis outlines the primary trends shaping the global games, esports, and mobile markets for 2021. The central thesis posits that while the COVID-19 pandemic accelerated engagement and spending, these behaviors have become permanent habits that will sustain market growth even as lockdowns ease. By the end of 2021, the global games market is projected to reach $189.3 billion in revenue, supported by a player base of 2.8 billion people, with significant growth emerging from Southeast Asia and the Middle East.
The scope of the findings covers PC, console, and mobile segments across major global regions, including North America, Europe, China, and emerging markets. Key data points include the rise of cloud gaming, which is expected to surpass $1 billion in annual revenue for the first time, and the rapid expansion of 5G technology, with 5G-ready active smartphones forecasted to grow from 5% in 2020 to 16% (700 million units) by the end of 2021. In the esports sector, mobile titles like PUBG Mobile and Garena Free Fire are now challenging traditional PC giants in viewership, signaling a shift toward mobile-first competitive gaming.
Methodologically, the findings are derived from proprietary market models and consumer research. The analysis highlights several structural shifts: the evolution of games into "metaverse" social platforms for non-gaming events, the disruption of mobile marketing due to the removal of Apple’s Identifier for Advertisers (IDFA), and the increasing pressure on traditional app store revenue-share models. Furthermore, the industry is noted to be prioritizing diversity, inclusion, and reduced toxicity in response to social movements and player demand. Ultimately, the convergence of platforms and the expansion of gaming IP into broader entertainment media are identified as the defining characteristics of the industry's trajectory.
