PwC Forecasts Significant Growth for Swedish Gaming and Advertising Industries Through 2029
PwC projects a 27% growth in Sweden's gaming industry by 2029, alongside a strong forecast for digital advertising.
Key Points
- • Swedish gaming industry expected to grow by 27% from 2024 to 2029.
- • Digital advertising market to increase by 32%, capturing 84% share by 2029.
- • Overall entertainment revenue in Sweden projected to rise to 199 billion SEK by 2029.
- • Music industry growth forecast to slow to 10% during the same period.
In a recent report, PwC has outlined an optimistic forecast for the Swedish gaming and entertainment sectors, predicting substantial growth between 2024 and 2029. The gaming industry, in particular, is expected to rebound dramatically, with anticipated revenue growth of 27% over this period, reaching approximately 11.2 billion SEK by 2029. This increase comes after a period of stagnation where the gaming sector only achieved a modest 3% growth from 2021 to 2024.
According to Johan Eriksson, communications chief at PwC Sweden, the upturn is primarily driven by rising advertising revenues, amidst an atmosphere of economic uncertainty and constrained consumer spending. The total entertainment and media revenues in Sweden are projected to rise from about 174 billion SEK in 2024 to nearly 199 billion SEK by 2029, reflecting a total growth rate of around 14%.
The report highlights an encouraging outlook for the advertising market as well, anticipating a 23% increase during the same period. Digital advertising, which currently holds a dominant share (78%) of the advertising landscape in Sweden, is reported to grow by an impressive 32%, ultimately capturing 84% of the market. Factors contributing to this growth include technological advancements in advertising that enhance personalization capabilities.
Conversely, while the gaming and advertising markets flourish, the report indicates sobering forecasts for other sectors such as Over-The-Top (OTT) services and the music industry. The music sector, which experienced an explosive growth of 208% from 2020 to 2024, is projected to slow significantly to just 10% between 2024 and 2029, with revenues expected to near 23 billion SEK.
PwC's report emphasizes that while the landscape is evolving, the entertainment industry must adapt and innovate to maintain growth, particularly through collaborative efforts and the utilization of artificial intelligence to create engaging and effective content.
As the sectors proliferate, the findings lend credence to a revitalizing trend in Sweden’s entertainment landscape, with significant growth opportunities on the horizon.