Global E&M industry to hit $3.5 trillion by 2029; retail media, CTV, gaming ads lead the segment, says PwC report
The global entertainment and media industry is set to reach $3.5 trillion by 2029, driven by AI-powered advertising growth, digital innovation, and rising demand in developing markets like India and Indonesia.
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The global entertainment and media (E&M) industry is undergoing a fundamental shift, with advertising emerging as the primary growth engine, powered by AI-led personalisation and platform transformation. According to PwC’s Global Entertainment & Media Outlook 2025–2029, the sector is poised to reach $3.5 trillion by 2029, up from just under $3 trillion in 2024.
While overall industry growth is expected to clock in at a modest CAGR of 3.7%, outpacing global GDP but still below pre-pandemic highs, advertising is expected to grow at 6.1%, nearly three times the pace of direct consumer spending. As mature markets hit saturation and subscription fatigue sets in, brands are increasingly turning to digital-first, AI-enabled formats, from retail media and connected TV to video game ads and hyper-targeted social campaigns, to reach fragmented and mobile audiences.
AI leads the race
As per the report, AI is emerging as a pivotal force in reshaping monetisation strategies. For instance, connected TV advertising, which was just 5.9% of traditional TV ad revenue in 2020, has climbed to 22% in 2024 and is projected to hit $51 billion in 2029, accounting for 45% of traditional TV ad value.
Meanwhile, retail media and e-commerce search advertising are booming, with retail search alone set to capture 45.5% of e-shopping ad dollars by 2029, up from 32.7% in 2020.
Though connectivity still remains the industry’s largest revenue contributor, reaching $1.3 trillion in 2029, its growth rate of 2.8% is being rapidly outpaced by the dynamism of digital advertising, narrowing the gap between telecom services and content monetisation.
Interestingly, offline experiences still dominate consumer spend despite the digital shift. In 2024, 61% of consumer revenue came from non-digital formats such as live events and cinema. The global box office is set to grow from $33 billion to $41.5 billion by 2029, though with audiences showing increased preference for local-language films, signalling a move away from Hollywood’s historical dominance.
Video Gaming to Hit $300 Billion by 2029
The video gaming industry continues to outpace music and film, generating $224 billion in 2024 and projected to touch $300 billion by 2029. Notably, advertising within gaming is also rising fast, set to account for 38.5% of all gaming revenue by 2029.
While the US remains the largest E&M market by revenue, its 3.8% CAGR lags behind China (6.1%), Indonesia and India, which is growing at over 7.5% CAGR due to internet advertising’s 15.9% growth rate, bolstered by 5G adoption and mobile-first consumption habits.
