Germany’s gaming revenue reached $7.2bn in 2022 and will grow at a five-year CAGR of 8.2% to $10.8bn by 2027. The main revenue contributor in 2022 is in-app purchases (68.9%), followed by game purchases (16%) and subscription services (15%). However, by 2027, subscription service revenue will surpass game purchase revenue, making up 19.7% of total revenue by offering gamers a monthly fee for more flexible and varied options. Furthermore, the increasing popularity of cloud gaming is a significant driver to boost the subscription service revenue.
In-app purchases generated $4.9bn in 2022, and it will increase at a five-year CAGR of 8.4% to $7.5bn in 2027. The growth is fueled by the increasing prevalence of free-to-play games. These games have a lower entry barrier, making them accessible to more players and incentivising players to purchase additional features such as in-game items. Moreover, the downloadable content for games that have been launched for a long time also contributes to revenue growth.
