Portuguese Video Games Industry Levels Up
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Loading... - Rio Fraser
- 15 Aug 2024
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Portugal's video game industry is experiencing significant growth, with projections indicating that revenues could reach approximately $258 million by 2024, according to AICEP Portugal Global, the country’s Trade and Investment Agency. The industry is expected to continue expanding at an annual growth rate of over 11% by 2027.
Since 2018, Portuguese video game companies have seen a substantial increase in turnover, with growth exceeding 65%. Mobile games, in particular, hold a large share of the market in Portugal, anticipated to generate around $56 million in revenue. The number of gamers in Portugal is also on the rise, with more than one million players (10.6% of the population) currently engaged, and this figure is expected to reach 11.7% by 2027.
The video game industry in Portugal has seen a dramatic increase in the number of companies, rising from 36 in 2018 to 114 in 2022, with the workforce expanding from 91 to over 500 employees during the same period.
Globally, the video game industry is booming, with revenues expected to surpass $455 billion in 2024 and potentially reaching around $666 billion by 2029, growing at an annual rate of nearly 8%. There are approximately 3 billion video game users worldwide, meaning one in three people globally play video games.
The European Union is supporting the competitiveness of the video game industry through initiatives like the Creative Europe project, which focuses on fostering narrative games and interactive experiences. Across the EU, there are about 4,600 video game companies, mostly small or micro businesses, similar to the structure in Portugal.
A significant development in Portugal’s gaming industry came in December 2023 with the creation of the Lisbon Gaming Hub under Unicorn Factory Lisboa. This hub serves as a crucial center for startups, investors, and multinational companies in the gaming sector. The hub has attracted significant players, including Fortis Games from the US, and local companies like OnTop Studios, Phat Fingers, The Gang, and GameDev Técnico, which comprises students from various universities and the Association of Portuguese Video Game Producers.
Additionally, the municipality of Castelo Branco in Central Portugal is now part of the European project GAME-ER, aimed at developing video game clusters in Portugal, France, the Czech Republic, Italy, and Scotland over the next three years. Funded with €3 million under Horizon Europe, this project supports innovation and research in the gaming industry.
Portugal also boasts a growing talent pool in the video game sector, with around 7,100 students enrolled in gaming or multimedia-related courses in 2021, further bolstering the country's capabilities and potential in this thriving industry.
