Market Trends of China Gaming Headsets Industry
Rising Internet Penetration and Emergence of Cloud Gaming Platforms
- The online gaming market has seen significant growth, primarily fueled by rising internet penetration and the widespread adoption of affordable smartphones in urban and rural areas. Revenue in this sector is generated through various channels, including in-app purchases, pay-per-download, subscription services, in-app ads, and incentive-based ads. For instance, in December 2023, China's internet population, as reported by CNNIC, expanded by 24.8 million from the previous year, surpassing one billion users. This significant increase has notably driven the rapid growth of China's mobile app market.
- With the rising internet penetration, major technology vendors are investing in online gaming, driving the region's market growth. For instance, in July 2024, Balenciaga collaborated with Tencent's Need for Speed Mobile game. Following its partnership with Alipay, Balenciaga strengthened its connections with Chinese technology leaders by partnering with Tencent's 'Need for Speed Mobile' racing game. This collaboration, over 500 days in the works, featured exclusive in-game items for both characters and vehicles. Fans could purchase physical merchandise at selected Balenciaga outlets, on balenciaga.cn, and through its WeChat Mini Program.
- As of today, the gaming market had undergone a significant transformation compared to a decade ago, largely due to globalization, digitalization, and the rise of mobile gaming. Mobile gaming, in particular, had expanded the player base and broadened the industry's global reach.
- The increasing number of mobile internet users was projected to lead to a fivefold surge in data consumption. For instance, data from January 2024, as reported by GSMA, highlighted China's dominance in Asia-Pacific, boasting about 1.76 billion mobile connections. These statistics underscored the potential of markets with youthful demographics, high internet penetration, active online engagement, and a growing willingness to spend on gaming.
- However, restraints like limited local game development and monetization of gamers are still challenging the high potential. In recent years, the overall internet ecosystem initiated course correction through end-to-end local game development.
Understand The Key Trends Shaping This Market
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Wireless Gaming Headset Segment to Hold Significant Market Share
- Wireless gaming headsets offer greater convenience and mobility compared to wired headsets. Gamers in China may move freely without being restricted by wires, allowing for a more immersive and comfortable gaming experience.
- The popularity of mobile gaming in China is on the rise, and wireless gaming headsets are well-suited for mobile gaming platforms. They provide a seamless connection to smartphones or tablets, enabling gamers to enjoy their favorite games on the go. For instance, in May 2024, SteelSeries commemorated the Lunar New Year with a special edition of its Arctis Nova 7 gaming headphones, inspired by the dragon, one of the twelve Chinese zodiac animals. The Arctis Nova 7 Dragon Edition headphones arrived in a customary red and gold motif, colors that symbolize prosperity and fortune, respectively, in the Lunar New Year tradition.
- Wireless gaming headsets have significantly improved in terms of audio quality, latency, and connection stability. Advancements in wireless technology, such as Bluetooth and wireless USB dongles, have made wireless headsets a viable and reliable option for gamers in China. For instance, in July 2024, Chinese electronics firm OXS unveiled its latest offering, the budget-friendly gaming headset, the OXS Storm G2 Wireless. The headset is priced at approximately EUR 79.99 (USD 87.48) and is accessible on Amazon and the official OXS website. Despite its modest price tag, the OXS Storm G2 Wireless packs a punch with a 1000 mAh battery, virtual 7.1 surround sound, multiple EQ presets, and versatile connectivity options, including Bluetooth, wired, and 2.4GHz.
- China has a thriving eSports scene, with many professional gamers and competitive gaming events. Wireless gaming headsets provide the freedom of movement required for professional gamers during intense gameplay, giving them an edge in competitive gaming environments. For instance, in January 2024, ESL, a prominent esports tournament organizer, revealed that IEM China was set to take place in Chengdu, China. This high-stakes event boasted a prize pool of USD 250,000 and was scheduled for April 8 – April 14, 2024.
- With the increasing emphasis on lifestyle and portability in China, wireless gaming headsets align with the preferences of gamers who value convenience and minimalistic setups. Wireless headsets fit well into the modern lifestyle of urban gamers.
