Omdia: Gaming subscriptions will grow to $22 billion by 2027
CAGR numbers are far from being mind-blown.
It is expected that by 2027, subscription services will account for 11.6% of the total gaming industry revenue.
The number of paying subscribers is projected to increase to 217 million by 2027, according to Omdia's forecasts, with 175 million by the end of 2023.
By the end of 2023, the revenue generated by subscription services will amount to $16 billion.
Omdia includes several types of offerings in subscription services:
Game library services (Xbox Game Pass, Netflix, advanced versions of PlayStation Plus subscriptions) are expected to account for 44% of total revenue in 2023 ($7.3 billion).
In-game subscriptions make up 30% of total revenue ($4.8 billion).
Subscriptions for access to platform functionality (online gaming) contribute 26% of total revenue ($4.3 billion).
Services offering cloud gaming are projected to earn $3.6 billion in 2023, with this figure increasing to $6.4 billion by 2027. Growth will be driven by subscriptions like Xbox Game Pass Ultimate and PlayStation Plus Premium.
The average annual growth rate of subscription services will be 6.58%.
Currently, Microsoft and Sony are the leaders in the subscription business, with a combined total of 51 million paying users.