The total market value of digital content is projected to grow 105 percent by 2026 to reach $432 billion, up from $211 billion estimated in 2021, according to a new study released by the UK-based Juniper Research.
This value include pay-per-download revenue, in-app spending, subscription revenue and ad spending in digital content, according to the report.
The report also expects the digital games sector to generate the highest revenue by 2026, accounting for 45 percent of the global market value.
The report forecast that there will be over 3.3 billion games users by 2026, up from 2.7 billion estimated in 2021. They urge games publishers to capitalise on this growth by offering subscriptions that leverage extensive content partnerships to provide regularly updated libraries that justify ongoing subscription costs.
“Over half of digital content spend will come from smartphones. However, as subscriptions become increasingly competitive, niche areas, such as augmented and virtual reality, will need to be considered when onboarding content partners”, said the report’s co-author Saidat Giwa-Osagie.
Meanwhile, the report identified two key developments in devices that are expected to provide new revenue opportunities over the upcoming five years, including immersive reality headsets and smart speakers.
It expected that digital content revenue attributable to these devices will rise from $2.4 billion in 2021, to $8.1 billion by 2026, representing a growth of 275 percent.
North America and Europe are projected to account for over 50 percent of revenue from immersive reality headsets and smart speakers by 2026, and it is anticipated that high levels of device ownership will result in these regions providing the most opportunities for monetisation over the next five years.