Online entertainment market seen reaching $1.5 trillion by 2035

Allied Market Research forecasts the global online entertainment market will grow from $284.8 billion in 2023 to $1.5006 trillion by 2035, driven by smartphones, affordable internet and rising streaming and gaming use. Video, advertising and smartphones led the market in 2023, while North America remained the largest regional market.

Why it matters: - The online entertainment market is expanding quickly as more consumers use smart devices to watch video, stream music, play games and access digital content. - The market’s projected growth to $1.5006 trillion by 2035 points to stronger demand for content, advertising, streaming platforms and device access. - The shift matters for media companies, advertisers, game publishers and device makers because the biggest segments are still growing from already large bases.

What happened: - Allied Market Research said the online entertainment market was valued at $284.8 billion in 2023. - The firm projects the market will reach $1,500.6 billion by 2035. - The forecast implies a 15% compound annual growth rate from 2024 to 2035. - The report defines online entertainment as internet-based entertainment delivered through smartphones, smart TVs, laptops and tablets.

The details: - The market is segmented by form, revenue model, device and region. - The video segment held the largest share in 2023 and is expected to keep leading through 2035. - Social platforms such as YouTube, Instagram and Facebook are helping drive video demand. - The advertisement segment led the market by revenue model in 2023 and is expected to remain dominant. - The report says digital advertising benefits from better audience interaction, higher conversion rates and stronger brand recognition. - OTT services are another growth driver, with Netflix, Hulu, Disney+ and Amazon Prime Video cited as examples. - Developing markets including India and China are adding to OTT demand. - The smartphone segment led the device market in 2023 and is expected to stay ahead. - Larger-screen smartphones are increasingly used for video, music streaming, web browsing and HD gaming. - In India, smartphone sales rose to 231.5 million in 2022 from 102.4 million in 2016, according to the India Brand Equity Foundation. - North America held the largest regional share in 2023 and is expected to keep its lead. - The report links North America’s position to technological adoption, high-bandwidth connectivity and a high digital literacy rate. - The U.S. is the largest market in North America.

Between the lines: - The report suggests online entertainment growth is being shaped less by one format and more by a mix of device access, ad monetization and streaming behavior. - Video remains the main entry point for audiences, but advertising remains the main revenue engine. - The focus on emerging markets signals where future subscriber and viewer growth is likely to come from, even as North America stays the largest market today. - Competition appears to be centered on product launches and business expansion, especially among platforms with strong content, analytics and cross-device reach.

What’s next: - Allied Market Research expects continued dominance from video, advertising, smartphones and North America through the forecast period. - Online content producers and distributors are likely to benefit from wider OTT adoption, stronger analytics and broader device compatibility. - The report points to further opportunity in cross-platform gaming and smart-device upgrades such as smart displays and smart speakers. - Key companies in the market include Amazon Web Services, Netflix, Google, Facebook, Tencent, Sony, King Digital Entertainment, Spotify, Rakuten and CBS.