China’s gaming market reaches $49.2B in 2024, set to top $54.8B by 2029

China’s video game industry continued its upward trajectory in 2024, with player spending reaching $49.2 billion, up 3.6% year-on-year, according to data from Niko Partners. Revenue is forecast to climb steadily to $50.7 billion in 2025 and reach $54.8 billion by 2029, reflecting a compound annual growth rate (CAGR) of 2.2%.

The country counted 722 million gamers at the end of 2024, more than double the population of the United States. This number is expected to rise to 753.7 million by 2029, while annual average revenue per user (ARPU) is projected to grow from $68 in 2024 to $73 in 2029. Growth is being fueled by mobile and PC evergreen titles, premium PC releases, next-generation consoles such as the Nintendo Switch 2, and a rising wave of mini games.

Generative AI is becoming a prominent part of the Chinese games ecosystem. Surveys show that 85% of gamers are aware of the technology, with nearly 40% expressing interest in its applications. On the production side, 60% of Chinese studios already integrate generative AI into their workflows. NetEase has been a frontrunner, deploying AI-powered non-playable characters (NPCs) and custom video creation in Justice Online Mobile.

Mini games—lightweight titles accessible instantly through platforms such as WeChat and Douyin—are expanding rapidly. Over 84% of Chinese gamers have played mini games, and the segment already represents nearly 10% of total player spending. These titles are particularly popular among women, with 17.7% of female players engaging daily, compared to 10.3% of men.

Esports and livestreaming remain integral to the market. 46.5% of gamers engage with esports, whether as players, viewers, or tournament participants. One in four regularly watches livestreams, making influencers and streamers key to marketing and player engagement. MOBAs and shooters dominate streaming platforms Huya, Douyu, and Bilibili, with Honor of Kings, League of Legends, Delta Force, and Valorant among the most watched titles.

Unlicensed games also hold a significant presence, accessible via global platforms like Steam. Titles such as PUBG and Apex Legends remain popular despite regulatory restrictions, while recent releases like Monster Hunter: Wilds and Path of Exile 2 have entered the top 100 streamed games.

Government policy continues to play a decisive role. In the first half of 2025 alone, the National Press and Publication Administration (NPPA) approved 1,119 titles, up 21% year-on-year, as more than 30 new policies were rolled out to support the sector. At the same time, challenges remain, including an aging gamer demographic, rising operational costs, regulatory uncertainty, and U.S.-China trade tensions affecting hardware supply, particularly GPUs.

From blockbuster domestic hits like Black Myth: Wukong, which surpassed 25 million global sales, to expanding segments in mini games, esports, and livestreaming, China’s gaming market is consolidating its position as the world’s largest. While regulatory and economic headwinds persist, steady revenue growth, massive player engagement, and early adoption of technologies like generative AI suggest continued global influence through 2029.