Global Online Entertainment Market to Grow at a CAGR of 21% by 2030.

Introduction

Online entertainment entails accessing entertainment content, such as music, videos, books, and games, via the internet. Increased internet penetration and smart device use, such as smartphones, smart TVs, and laptops, have increased the number of netizens who have transferred their entertainment preferences to online platforms.

People are rapidly making videos, music, and photographs on various social media platforms such as Instagram, Facebook, Tumblr, LinkedIn, and Whatsapp, which has contributed to the rise in popularity of online social media entertainment. Consequently, the expansion of the online entertainment market is anticipated to be fueled by the increasing popularity of social media platforms over the forecast period.

Market Dynamics

Technological Advancements in Smartphones to Drive the Global Online Entertainment Market

The online entertainment sector has garnered a wide user base due to the proliferation of internet-enabled gadgets such as smartphones, smart TVs, laptops, and PCs. For example, the introduction of 4G and 5G smartphones has improved the viewership and subscription rates of several OTT video platforms, including Netflix, Amazon Prime, Hulu, Hotstar, Alt Balaji, and Zee5. OTT media services contribute significantly to the expansion of the online entertainment business. In addition, smartphones are increasingly used to play online video games due to their portability and increased display size, as smartphones with large screens enhance both the visual and gaming experience. Pubg, Fortnite Battle Royale, League of Legends (LOL), Hearthstone, and ArcheAge are examples of online games that have acquired popularity and favorably impacted the sales of smartphones, consequently boosting the expansion of the worldwide online platform market.

Surge in Expenditure on Digital Advertisement to Provide Opportunities for the Global Online Entertainment Market

It is anticipated that increasing web traffic would attract investors and customers to advertise and promote goods and services. Social media significantly impacts the expansion of the online or digital advertising business. The vast majority of social media networks, including Instagram, LinkedIn, Telegram, and WhatsApp, have gained tremendous popularity among millennials, which is a lucrative chance for investors to advertise their enterprises on these platforms. Digital media advertising advantages such as increased customer conversion rates, decreased marketing expenses, the presence of a targeted and segmented customer base, improved search engine rankings, increased inbound traffic, and superior customer satisfaction are anticipated to create growth opportunities for the market in the near future.

Regional Insights

By region, the global online entertainment market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor and is estimated to grow at a CAGR of 16.1%. In 2019, North America dominated the online entertainment industry, and this trend is anticipated to continue during the projected period. This is primarily attributable to the availability of affordable, high-bandwidth connections, the prevalence of smartphone users, and the high percentage of digital literacy. Moreover, early adoptions and positive responses to technical innovations in the entertainment & media business, such as OTT platforms, contribute to market expansion. These internet-based services, which include over-the-top platforms, are fast displacing traditional programming distributors, including cable, satellite, and broadcasting. Moreover, OTT services have gained immense popularity in the United States, as videos, serials, games, and music are streamed on numerous OTT platforms, including Apple TV+, Disney+, YouTube TV, PlayStation Vue, Google Play Movies & TV, Hulu, Netflix, and Prime Video. The convenience of accessing broadcasting content, quality content, tailored subscription packages, and unique content, such as documentaries and TV shows, pushes the adoption of OTT services, which in turn stimulates the expansion of the North American online entertainment sector.

Europe is the second largest region. It is estimated to reach a predicted value of USD 390 billion by 2030, registering a CAGR of 22.5%. Due to the increasing popularity of online gaming and over-the-top (OTT) services, Europe is anticipated to maintain a significant share of the online entertainment market over the forecast period. In addition, the move from traditional to online gaming has had a favorable effect on the market. Online wagering has acquired substantial popularity in Europe, contributing to the expansion of the business. Increased smartphone adoption with superior communication capabilities has transformed the OTT services market, which is expected to drive market growth during the forecast period.

Asia-Pacific is the third largest region. The Asia-Pacific online entertainment market is researched throughout China, India, Japan, Australia, South Korea, and the remainder of Asia-Pacific. Asia-Pacific is becoming one of the most important internet entertainment markets. China has the most significant penetration of online gaming and music globally, contributing considerably to the Asia-Pacific industry's expansion. In addition, technological advances in smart devices are anticipated to fuel the growth of the online entertainment sector. The rise in disposable income in developing economies has accelerated the use of electronic gadgets such as smartphones, smart TVs, laptops, and intelligent displays & speakers, accelerating market expansion. Asia-online Pacific's entertainment business is growing due to an increase in smartphone users and a decrease in data rates. Smartphones are internet-capable gadgets used chiefly for online entertainment. According to the India Brand Equity Foundation, India registered around 502 million smartphone users in 2019, representing nearly 77% of Indians with internet connectivity. This figure is anticipated to reach 780 million by 2021, likely to fuel the market's expansion throughout the projected period.

Key Highlights

• The global online entertainment market size was valued at USD 392.38 billion in 2023. It is projected to reach from USD 474.78 billion in 2024 to USD 2181.59 billion by 2032, growing at a CAGR of 21% during the forecast period (2024–2032).
• Based on form, the global online entertainment market is categorized into video, audio, games, internet radio, and others. The video segment was the highest contributor to the market and is estimated to grow at a CAGR of 16.1% during the forecast period. 
• By revenue model, the global online entertainment market is segregated into subscription, advertisement, sponsorship, and others. The advertisement segment was the highest contributor to the market and is estimated to grow at a CAGR of 16.5% during the forecast period. 
• Depending on the device, the global online entertainment market is divided into smartphones; smart TVs, projectors, & monitors; laptops, desktops, & tablets; and others. The smartphone segment was the highest contributor to the market and is estimated to grow at a CAGR of 21.2% during the forecast period. 

Competitive Players

1. Amazon Web Services (AWS)
2. Netflix Inc.
3. Google LLC
4. Facebook
5. Tencent Holdings Ltd.
6. Sony Corp
7. King Digital Entertainment Ltd.
8. Spotify Technology S.A.
9. Rakuten Inc.
10. CBS Corporation.

Recent Developments

Recent Developments

• September 2022 - Rakuten Group, Inc. and Hakuhodo DY Holdings Inc. announced the establishment of Rakuten Data Solutions, Inc. With operations underway, this new company will research and develop new data solutions.
• June 2022 - Rakuten Group, Inc. today announced that it partnered with Toon Cracker Co., Ltd. and will enter the vertically scrolling full-color digital comics for smartphones.

Segmentation

1. By Form
   1. Video
   2. Audio
   3. Games
   4. Internet Radio
   5. Others
2. By Revenue Model
   1. Subscription
   2. Advertisement
   3. Sponsorship
   4. Others
3. By Device
   1. Smartphones
   2. Smart TVs, Projectors, & Monitors
   3. Laptop, Desktops, & Tablets
   4. Others