China will overtake Japan to become the world's second-largest entertainment and media market by the end of 2018, next only to the United States, according to the Global Entertainment and Media Outlook 2014-18, published by global consultancy PricewaterhouseCoopers on Tuesday.

Overall spending in the E&M segments in China is forecast to grow at 10.9 percent compound annual growth rate through to 2018, including an 11.8 percent CAGR in overall advertising spending. On the other hand, the global E&M industry is foreseen to grow by an overall 5 percent CAGR through 2018.

"The coming of age of China as the world's second-largest entertainment and media market in 2018 is a reflection of the consumption power of a growing middle class that is both the target of increasing brand activity as well as a potent force itself in the demand for all forms of entertainment," said Marcel Fenez, PwC's global leader in entertainment and media division.