In-Game Ads to Become the Second-Largest Revenue Stream of the Gaming Industry by 2030
For years, mobile games have been one of the largest and fastest-growing segments of the gaming industry, trailing only gaming hardware in revenue. However, as the market matured, other segments began to take the lead, both in terms of total revenue and projected growth. And while cloud gaming tops the growth chart with a projected 179% revenue increase over the next five years, the biggest shift in overall revenue will come from in-game advertising.
According to data presented by Skinsluck.com, in-game ads are set to become the gaming industry's second-largest revenue stream by 2030, achieving something no other segment has done before- overtaking mobile games.
$16 Billion Higher Revenue than Mobile Games
In-game ads have changed a lot in just a few years. As billions of players spend more time online, brands are investing in interactive ads that fit smoothly into gameplay, turning them from distractions into part of the experience. Thanks to this approach, in-game ads have quickly become one of the most profitable parts of the gaming industry, outpacing even mobile games.
According to the latest Statista projections, the gaming industry is expected to generate $522.4 billion in revenue in 2025, nearly $50 billion more than last year. Almost one-third of that value, or $178 billion, will come from the gaming hardware sales, the market's largest revenue stream. Mobile games follow with a 24% share and $126 billion in revenue. Not far behind, in-game ads ranked third with $124 billion, while online games and download games round up the top five with $29.4 billion and $22.7 billion, respectively. However, according to Statista projections, mobile games and in-game advertising are expected to switch places by the end of the decade, with in-game ads becoming the second-largest revenue stream in the gaming industry.
Gaming hardware will keep its top position, growing 45% and reaching a value of over $256 billion by 2030. However, thanks to an even more impressive 45.7% growth and $181.3 billion in revenue, in-game ads will climb into second place, surpassing mobile games by roughly $16 billion. Although gaming apps will continue to grow at a solid pace, their revenue is expected to rise by 30% to around $164 billion by 2030. Online and download games follow with roughly a 27% growth each, and $37 billion and $28 billion in revenue, respectively.
The Statista data also show that the cloud gaming segment will see the biggest five-year growth of 173%, reaching $10.5 billion by 2030, while the overall gaming market is set to expand by 40% and hit a $733 billion value by the end of the decade.
In-Game Ads Alone to Generate More Revenue Than Other Five Segments Combined
The size of the in-game advertising market becomes even more striking when compared to other market segments. With $181 billion in revenue projected for 2030, in-game ads will not only surpass mobile games by $16 billion but also generate more revenue than download games, online games, gaming networks, cloud gaming, and game streaming combined, showing just how fast this space is growing.