Key points
- Pakistan has over 34m online gamers: minister
- Global video game market is valued at around $227.6b
- China’s video gaming industry achieved a revenue of $44.8b in 2024
ISLAMABAD: Pakistan’s gaming industry has seen rapid growth, fuelled by a tech-savvy youth demographic, increased smartphone usage, and enhanced digital infrastructure.
With over 34 million online gamers and projections to reach 45 million by 2025, the country is becoming a significant player in the global gaming market, according to Shaza Fatima Khawaja, Minister for Information Technology and Telecommunication.
As of 2023, the global video game market was valued at around $227.6 billion, with projections indicating substantial growth, potentially more than doubling in the coming years, according to Investopedia.
The combined global market for animation, gaming and graphics was valued at $626 billion in 2022 and is expected to exceed $1 trillion by 2030.
This growth is primarily driven by the rise of mobile gaming, which made up 52 per cent of the market in 2022.
Advancements in smartphone technology
Mobile gaming’s affordability and advancements in smartphone technology have increased both the variety and accessibility of games.
According to the 2022–23 report by the Pakistan Software Houses Association’s Animation, Gaming, and Graphics Ecosystem, the sector in Pakistan generated $300 million in revenue, with exports reaching $157.9 million.
The sector employs 12,057 people, and there are 257 companies involved in Animation, Graphics, and Gaming. The industry raised a total investment of $36 million in 2022–23.
Mobile gaming dominates the market, with 60 per cent of gamers using mobile devices, 30 per cent on PCs, and 10 per cent on consoles.
Centre of Excellence in Gaming and Animation
Local game development is increasing, as Pakistani developers are targeting global markets for better financial returns. The Pakistani government has launched several initiatives to support the industry, including the Centre of Excellence in Gaming and Animation (CEGA).
The CEGA, to be established in Karachi and Lahore, aims to foster and support new gaming and animation startups and will offer training to 10,000 participants over five years.
This initiative is being funded by Ignite National Technology Fund, Ministry of IT & Telecom, with a budget of Rs2.5 billion.
The gaming sectors in China and South Korea have emerged as significant contributors to their economies, showcasing robust growth and evolving regulatory landscapes.
China’s gaming industry
In 2024, China’s video gaming industry achieved a record revenue of 325.8 billion yuan (approximately $44.8 billion), marking a 7.53 per cent increase from the previous year, according to Beijing Times.
Mobile games dominated the market, accounting for 73 per cent of the total revenue with sales reaching 238.2 billion yuan. The number of gamers in China rose slightly by 0.94 per cent to 674 million, indicating a substantial user base.
The industry is poised for further expansion, with projections estimating growth from $66.13 billion in 2024 to $95.51 billion by 2029, reflecting a compound annual growth rate (CAGR) of 7.63 per cent, according to Games Forum.
Stringent regulations in China
China’s gaming industry operates under stringent regulations. In 2024, authorities introduced measures to curb excessive gaming among minors, including restrictions on gaming hours and enhanced content filtering systems, according to Chambers Practice Guide.
Additionally, the government issued a record 1,416 game licenses, the highest since 2019, indicating a recovery in the sector after previous clampdowns, according to South China Morning Post.
Gaming industry in South Korea
South Korea’s gaming market was valued at approximately 22.96 trillion South Korean won in 2022.
The mobile gaming segment has shown remarkable growth, generating $7.4 billion in revenue in 2024, positioning South Korea as the fourth-largest global market by revenue.
South Korea maintains a comprehensive regulatory framework for its gaming industry.
Game Industry Promotion Act
In September 2024, the South Korean National Assembly amended the Game Industry Promotion Act, mandating foreign game companies to appoint a local representative, with enforcement beginning in October 2025, according to Transatlantic Law International.
Additionally, games with speculative elements are prohibited under various laws, including the Game Industry Act and the Korean Criminal Code, with violators facing imprisonment or fines.
