South-east Asian Mobile Gaming Market Will Cross $7 Billion in Revenue by 2028

The SEA-6 market, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, shows significant promise for the gaming industry. According to reports by Niko Partners, this region is set to become a major force in the global gaming industry, with revenue expected to exceed $7.1 billion by 2028.

This impressive growth is evident in the region’s recent performance. Last year, gaming revenue surpassed $5.1 billion, and it is expected to grow by 8.0% this year, reaching $5.5 billion.

Niko Partners attributes this growth primarily to the rising popularity of mobile gaming. Mobile gaming currently accounts for 66.4% of the total revenue, and this share is expected to increase to 70% by 2027.

Rising Gamer Numbers

The SEA-6 market is also seeing a surge in the number of gamers. By 2028, the region is expected to be home to 332 million gamers, equivalent to the current population of the United States.

In 2023, the SEA video game market had 277.2 million gamers, reflecting a 4.4% year-over-year increase. The number of gamers is projected to grow by 3.2% in 2024, reaching 285.9 million, and is forecasted to reach 331.8 million by 2028, with a 5-year compound annual growth rate (CAGR) of 3.7%.

Indonesia stands out as the leading market in the SEA-6 region. Over the next five years, the number of gamers in the country is expected to increase by 4% on both PC and mobile platforms.

Thailand and Indonesia are the fastest-growing markets by revenue through 2028, making Thai and Indonesian essential languages for game localization.

A notable development is in Singapore, where mobile game revenue has surpassed that of larger nations like Malaysia, the Philippines, and Vietnam. Meanwhile, Thailand and Vietnam are projected to see a 7% growth in mobile revenue over the next half-decade.

Lisa Hanson, a leading authority in the gaming industry and the CEO and President of Niko Partners, emphasizes the significant potential of the Southeast Asian market. She asserts:

“As a mobile-first market with a huge esports fanbase, Southeast Asia offers tremendous opportunities for global game companies. Their increased presence in the region showcases how promising the Southeast Asia market is.”

Hanson also emphasizes the importance of understanding the cultural diversity within Southeast Asia. Each market in the region is unique, and a tailored approach that considers these differences is crucial for success.

Distinctiveness of the SEA Market

The Southeast Asian gaming market is unique due to its strategic position near other major markets such as China, India, Japan, South Korea, and Australia. This, combined with a diverse and multifaceted audience, makes it an ideal location for soft launches and beta tests. These factors allow developers and publishers to evaluate the performance of their games before launching in the broader Asian market.

Niko Partners’ projections indicate that Southeast Asia will continue its upward trajectory through the latter half of the decade. This positive outlook is likely to attract further investment to the region and spur the release of numerous innovative games.

For more information, read the full NIKO Partner report here. And remember to subscribe to Gaming Foodle for more gaming industry news!