Market Analysis: Projected Growth of Worldwide Media and Entertainment Industry Reaches an Estimated $3.5 Trillion by 2029
Global Entertainment and Media Industry Set to Reach $3.5 Trillion by 2029
The entertainment and media (E&M) industry is projected to experience significant growth over the next five years, according to PwC's "Annual Global Entertainment & Media Outlook 2025-29." The industry is expected to expand at a compound annual growth rate (CAGR) of 3.7%, reaching nearly $3.5 trillion by 2029.
One of the key drivers of this growth is advertising, which is forecast to grow even faster, at a CAGR of 6.1% over the same period. Advertising spend is expanding three times faster than direct consumer spending growth in E&M.
Digital ad formats are already dominant, constituting 72% of global advertising revenue in 2024. This share is expected to rise to 80% by 2029, driven by AI-powered targeting and hyper-personalization. Specific advertising segments with rapid growth forecasts include retail media advertising and social/mobile video advertising, both expected to grow at a 15% CAGR, and connected TV (CTV) in-stream advertising, projected at a 14% CAGR. CTV advertising revenue alone is expected to reach $51 billion by 2029, equaling 45% of traditional TV ad spend.
The growth trajectory of the E&M industry is supported by artificial intelligence driving hyper-personalized advertising and strong adoption of streaming and digital formats. By 2029, the gulf between connectivity and advertising spend is set to rapidly narrow.
The global video gaming industry is also expected to grow, reaching nearly $300 billion in 2029, with a CAGR of 5.7%. The fastest growing markets globally continue to be in developing markets, including India and Indonesia, all with CAGRs above 7.5%. In India, internet advertising is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.
While global cinema box office spending is expected to rise from $33 billion in 2024 to $41.5 billion in 2029, consumers' preferences are continuing to shift towards locally produced films. Connectivity remains the largest category in the industry, with spending reaching $1.3 trillion in 2029.
As growth for paid or subscription products slows, advertising is expected to be a key driver of revenue. Non-digital revenue, including live music, events, and cinema box office, leads consumer spending and is expected to continue at a broadly similar level through the forecast period.
In summary, the report highlights advertising, especially driven by AI innovations and digital platforms like CTV, as a major growth engine underpinning the overall E&M industry expansion to $3.5 trillion by 2029.
| Metric | Projection for 2029 | CAGR (2024-2029) | |-----------------------------|-----------------------------------|-------------------------| | Total E&M industry revenue | Nearly $3.5 trillion | 3.7% | | Advertising revenue growth | — | 6.1% | | CTV advertising revenue | $51 billion | 14% (connected TV ads) | | Retail media & social/mobile video ads | — | 15% |
Sources: 1. PwC's "Annual Global Entertainment & Media Outlook 2025-29" 2. PwC's "Global Entertainment & Media Outlook 2022" 3. PwC's "Global Entertainment & Media Outlook 2021"
- The entertainment and media industry, projected to reach $3.5 trillion by 2029, is experiencing a significant growth rate of 3.7%.
- Advertising is one of the key drivers of this growth, forecast to grow at a rate of 6.1% over the same period.
- Digital ad formats, already dominating with 72% of global advertising revenue in 2024, are expected to increase to 80% by 2029 due to AI-powered targeting and hyper-personalization.
- Retail media advertising and social/mobile video advertising, expected to grow at a 15% compound annual growth rate, are segments with rapid growth forecasts.
- By 2029, the video gaming industry is expected to reach nearly $300 billion, with a compound annual growth rate of 5.7%.
- Locally produced films are continuing to gain preference in the global cinema box office spending, which is expected to rise to $41.5 billion by 2029.
- The report also predicts that as growth for paid or subscription products slows, advertising will become a significant driver of revenue, especially in the form of AI-driven and digital platforms such as CTV.
