Africa Gaming Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.14 Billion |
| Market Size (2029) | USD 3.72 Billion |
| CAGR (2024 - 2029) | 11.62 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Gaming Market Analysis
The Africa Gaming Market size is estimated at USD 2.14 billion in 2024, and is expected to reach USD 3.72 billion by 2029, growing at a CAGR of 11.62% during the forecast period (2024-2029).
The rise of mobile gaming in Africa is aided by rising internet connectivity, increasing adoption of smartphones, and the advent of high bandwidth network connectivity, such as 5G, which have further increased the demand of the gaming market across regional countries.
- Africa is regarded as one of the significant regions globally with a growing youth population. According to the United Nations, by 2050, Africa's young people, i.e., those aged between 0 and 24 in certain countries of the region, will witness an increase of around 50%. Africa is anticipated to have the most significant number of young people in the coming decade. Hence, Africa's youth is highly crucial to the regional market’s future in gaming.
- According to GSMA, there has been a steady growth of unique mobile subscribers in Sub-Saharan Africa. This trend is expected to continue over the subsequent seven years from 2023, bringing the total to nearly 700 million by the end of 2030. Nigeria and Ethiopia were projected to account for almost a third of the total subscribers in 2030. Mobile penetration in Sub-Saharan Africa was anticipated to reach 50% by 2030. Moreover, this number is expected to increase to 475 million by 2025, among which more than a quarter of these connections will be on a 4G network. Meanwhile, in North Africa, 290 million people own cell phones. This high usage of mobile phones with 5G networks is expected to drive the market significantly.
- Moreover, Nigeria's gaming industry has expanded drastically, benefiting from the large and youthful population, the improving internet penetration rate, and increasing consumer access to internet-enabled devices. The proliferation of connected devices in Nigeria has also led to extensive adoption of the technology, and people from all demographics enjoy digital gaming in its numerous forms. Mobile gaming is prevalent in Nigeria since smartphones and tablets are widely available and affordable.
- However, aspects like the rise in issues like piracy, changing laws and regulations, and various concerns relating to fraud during gaming transactions might be factors that impede the overall growth of the market over the coming years.
Africa Gaming Market Trends
Improvements in Technology and Internet Network Access Driving the Market
- The enhancement of mobile technology and its associated use cases have unleashed technological evolution in the region. The surge in overall smartphone usage leading to internet adoption has further leveraged the rise in the adoption of everyday use cases such as gaming.
- 5G is one of the major drivers for the growth of smartphones, leading to a surge in competitive gaming in the region. According to Ericsson Mobility Report, in the Middle East and Africa, the total number of subscribers for 5G services may reach 60 million by 2024, representing about 3% of all mobile subscriptions in the region. GSMA also estimates there may be around 50 million 5G connections across the MENA region, of which 20 million connections could be in the Arab States alone by 2025.
- Africa's overall share of internet users has grown drastically. According to ITU, the percentage of households with internet access in South Africa is forecast to continuously increase between 2024 and 2029, with a total rise of 16.6 percentage points. After seven consecutive years of growth, internet penetration was estimated to reach 97.38%, marking a new peak in 2029. The rise in the total number of internet users and increasing internet penetration in Africa are expected to significantly augment the market's growth.
- Additionally, the launch of various gaming smartphones by several regional companies is increasing the market's overall growth rate. For instance, MediaTek, a fabless semiconductor company, recently reiterated its commitment to providing new technology solutions to enable the rollout of future-ready smartphones in the South African market. The company announced the launch of its premium gaming chip, MediaTek Helio G95, along with its offerings across the spectrum, including G90T, G85, G80, G70, G35, and G25 chips. The products were aimed at the premium 4G gaming smartphone segment. The company has also associated with various smartphone brands such as Oppo, Xiaomi, and Infinix to launch up to 10 premium, feature-rich smartphones powered by the MediaTek Helio G series last year.
- As per Ericsson, the overall monthly smartphone data traffic per smartphone in Sub-Saharan Africa is projected to amount to 10.99 gigabytes (GB) per active device by 2027. Last year, the average data traffic per active smartphone amounted to 2.89 GB per month. This overall rise in the average data traffic per active smartphone will exponentially drive the market's growth.
Nigeria Expected to Hold a Considerable Market Share
- The existence of a vast customer base of young middle-income groups is a significant aspect contributing to the rise in the gaming industry in the Nigerian market. This is further expected to create ample opportunities for the market to grow and sustain throughout the forecast period.
- Gamers in the country are shifting to social gaming, the free-to-play revenue model with downstream in-game purchases. It has become increasingly popular in the country. Also, the gaming industry in the country is bringing millions of dollars to countries per year. This is for all categories of video games: mobile, PC, Xbox, and PS. Due to such factors, Nigeria is expected to contribute substantially to the entire African market.
- Also, the gaming market in Nigeria is anticipated to witness a considerable surge in overall usage of the internet through mobile over the forecast period, with international market players injecting large-scale investments into the region. Hence, there is a constant rise in subscriptions, resulting in the growth of the mobile gaming industry within the country. For instance, in May 2024, the Nigerian federal government announced plans to reinstate telecom taxes and implement additional fiscal measures to secure a USD 750 million loan from the World Bank. This decision came nearly ten months after the government had suspended the 5% excise duty on telecommunications and the Import Tax Adjustment levy on specific vehicles.
- Moreover, the Nigerian gaming market trend is aided by improved mobile penetration. For instance, according to Hootsuite's data, the mobile penetration rate increased to 51% in 2024, owing to increased awareness through aggressive expansion and marketing by operators and technological improvements in payment platforms. Nigeria's gaming industry is fragmented, with the presence of various small market players. As user behavior changes and spending needs increase, the industry is anticipated to reach consolidation over the forecast period.
- According to the OECD, between 2024 and 2029, Nigeria is projected to experience a steady rise in mobile broadband connections, with an overall increase of 8.9 connections per 100 inhabitants, marking a 19.16% growth. Following eight years of consecutive growth, the penetration of mobile broadband is set to reach 55.3 connections, reaching a new peak in 2029. The vast majority of these connections are mobile GSM connections. This rise in the total number of active internet subscriptions in Nigeria will amplify the market's overall growth rate throughout the forecast period.
Africa Gaming Industry Overview
The African gaming market is highly fragmented as the demand for online games and increasing penetration of mobile applications is growing across the region. Such factors will attract new players to this market over the next few years. Some of the leading participants in the market are Kucheza, Kagiso Interactive, Nyamakop, Celestial Games, and Kuluya. Key developments in the regional market are as follows:
- May 2024: Microsoft, via its Africa Transformation Office (ATO), unveiled the second iteration of the Xbox Game Camp in Africa. This initiative was designed to enhance local developer talent and accelerate the growth of the regional gaming industry. The event, scheduled for July 16-17, was a two-day online conference complemented by in-person gatherings in Johannesburg, Nairobi, and Casablanca.
- January 2024: Sony, through its venture arm, the Sony Innovation Fund, made an undisclosed investment in Carry1st, a video game studio located in Cape Town, South Africa. This strategic partnership was intended to unlock a host of commercial opportunities for both entities.
Africa Gaming Market Leaders
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Kucheza
-
Kagiso Interactive
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Nyamakop
-
Celestial Games
-
Kuluya
*Disclaimer: Major Players sorted in no particular order
Africa Gaming Market News
- April 2024: The Royal Moroccan Federation for Electronic Games (FRMJE) inaugurated Africa's "eBotola MDJS eSports" championship. The tournament occurred at two primary venues: the FRMJE headquarters and various youth centers nationwide. The championship's champions secured the national title and earned a coveted spot in Africa's inaugural Club World Cup qualification PlayIns (EA FC24).
- February 2024: Evolution announced an agreement with Betway, launching the first customized game show for players in South Africa. Betway XXXtreme Lightning Roulette was made available, streaming live from the brand-new dedicated studio. Betway XXXtreme Lightning Roulette claims to offer the most extreme roulette experience with Chain Lightning Numbers and Double Strike Multipliers. This globally popular game provided an electrifying live dealer experience with more opportunities to hit a lucky bet spot, boasting up to 2,000x multipliers.
Africa Gaming Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth in Youth Population
5.1.2 Improvement in Technology and Internet Network Access
5.2 Market Restraints
5.2.1 Issues Such as Piracy, Laws and Regulations, and Concerns Relating to Fraud During Gaming Transactions
6. MARKET SEGMENTATION
6.1 Platform
6.1.1 Browser PC
6.1.2 Smartphone
6.1.3 Tablets
6.1.4 Gaming Console
6.1.5 Downloaded/Box PC
6.2 Country
6.2.1 Nigeria
6.2.2 Ethiopia
6.2.3 Egypt
6.2.4 Morocco
6.2.5 Kenya
6.2.6 Algeria
6.2.7 South Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Gamesole
7.1.2 Kuluya
7.1.3 Chopup
7.1.4 Kucheza
7.1.5 Kagiso Interactive
7.1.6 Nyamakop
7.1.7 Celestial Games
7.1.8 Clockwork Acorn
7.1.9 Sony Corporation
7.1.10 Microsoft Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Africa Gaming Industry Segmentation
Gaming is referred to as playing electronic games conducted through multiple means, such as computers, mobile phones, consoles, or other mediums. The rising prevalence of high-speed internet connections, especially in emerging economies, has made online gaming practical for more people in recent years. The scope of the research includes mobile, console, and PC browsers and downloaded games.
The African gaming market is segregated by platform (browser PC, smartphone, tablets, gaming console, and downloaded/box PC) and country (Nigeria, Ethiopia, Egypt, Morocco, Kenya, Algeria, and South Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Platform | |
| Browser PC | |
| Smartphone | |
| Tablets | |
| Gaming Console | |
| Downloaded/Box PC |
| Country | |
| Nigeria | |
| Ethiopia | |
| Egypt | |
| Morocco | |
| Kenya | |
| Algeria | |
| South Africa |
Africa Gaming Market Research FAQs
How big is the Africa Gaming Market?
The Africa Gaming Market size is expected to reach USD 2.14 billion in 2024 and grow at a CAGR of 11.62% to reach USD 3.72 billion by 2029.
What is the current Africa Gaming Market size?
In 2024, the Africa Gaming Market size is expected to reach USD 2.14 billion.
Who are the key players in Africa Gaming Market?
Kucheza, Kagiso Interactive, Nyamakop, Celestial Games and Kuluya are the major companies operating in the Africa Gaming Market.
What years does this Africa Gaming Market cover, and what was the market size in 2023?
In 2023, the Africa Gaming Market size was estimated at USD 1.89 billion. The report covers the Africa Gaming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Gaming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What future trends are expected to shape the Africa Gaming Market?
Key future trends that are shaping the future of the Africa Gaming Market include a) Rise of cloud gaming b) Increased investment in local game development c) Expansion of esports tournaments
What future trends are expected to shape the Africa Gaming Market?
Key future trends that are shaping the future of the Africa Gaming Market include a) Rise of cloud gaming b) Increased investment in local game development c) Expansion of esports tournaments
Africa Gaming Industry Report
The Africa Gaming Market Report is segmented by platform, including browser PC, smartphone, tablets, gaming console, and downloaded/box PC, and by country, such as Nigeria, Ethiopia, Egypt, Morocco, Kenya, Algeria, and South Africa. The market sizes and forecasts are provided in terms of value for all segments. The gaming industry in Africa is experiencing significant growth, driven by a young and expanding population along with rising disposable incomes. This has led to an increased demand for gaming. Enhanced internet connectivity and the widespread adoption of smartphones have made online and mobile gaming more accessible, further propelling the industry's expansion.
The gaming industry in South Africa and other regions is thriving due to technological advancements like the rollout of 5G networks, which significantly improve the gaming experience. Local gaming content development that aligns with African cultures also supports this growth, despite challenges such as infrastructure limitations and regulatory hurdles. The market's evolution is highlighted by a diverse segment analysis, with mobile gaming leading, followed by PC and console gaming.
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