Online Games - Philippines

Philippines

Highlights

In the Philippines, revenue in the Online Games market market is projected to reach US$27.75m in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -0.26%, leading to a projected market volume of US$27.40m by 2029.
Within the Online Games market market in the Philippines, the number of users is expected to reach 18.2m users by 2029.
User penetration is forecasted to be 13.9% in 2024 and is expected to increase to 14.2% by 2029.
In a global context, the majority of revenue will be generated China, which is projected to achieve US$6.53bn in 2024.
The average revenue per user (ARPU) in the Online Games market market in the Philippines is projected to be US$1.68 in 2024.
The Philippines is witnessing a surge in online gaming popularity, driven by a youthful demographic and increasing internet accessibility, fostering a vibrant gaming culture.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Games market in Philippines has been experiencing significant growth in recent years, driven by the increasing popularity of online gaming among consumers.

Customer preferences: Customer preferences in the Online Games market in Philippines have been shifting towards mobile gaming. With the widespread availability of smartphones and affordable data plans, more and more consumers are choosing to play games on their mobile devices. This trend can be attributed to the convenience and portability of mobile gaming, allowing users to play games anytime and anywhere. Additionally, the rise of multiplayer online battle arena (MOBA) games has also contributed to the growth of the online gaming market in Philippines. These games offer a competitive and social gaming experience, attracting a large number of players.

Trends in the market: One of the key trends in the Online Games market in Philippines is the increasing focus on esports. Esports refers to competitive video gaming, where professional players compete against each other in organized tournaments. The popularity of esports has been growing rapidly worldwide, and Philippines is no exception. The country has seen a surge in the number of esports tournaments and events, attracting both local and international participants. This trend is driven by the growing interest in competitive gaming and the potential for lucrative sponsorships and prize money. Another trend in the Online Games market in Philippines is the rise of free-to-play games with in-app purchases. This business model allows users to download and play games for free, but offers optional in-app purchases for virtual items or additional features. This model has proven to be highly profitable, as it encourages players to spend money on virtual goods, enhancing their gaming experience. Many game developers have adopted this model in Philippines, capitalizing on the willingness of players to spend on in-app purchases.

Local special circumstances: One of the unique aspects of the Online Games market in Philippines is the prevalence of internet cafes. These establishments provide access to computers and internet connection, allowing individuals who do not have their own devices to play online games. Internet cafes have been a popular gathering place for gamers, offering a social and communal gaming experience. This has contributed to the growth of the online gaming market in Philippines, as it provides access to gaming for a wider audience.

Underlying macroeconomic factors: The growth of the Online Games market in Philippines can also be attributed to the country's strong economic growth and increasing disposable income. As the economy continues to expand, more consumers have the means to spend on leisure activities, including online gaming. Additionally, the young population in Philippines, with a high percentage of millennials, is a key driver of the online gaming market. This demographic is highly engaged in gaming and has a strong affinity for digital entertainment. In conclusion, the Online Games market in Philippines is experiencing significant growth, driven by customer preferences for mobile gaming, the rise of esports, and the popularity of free-to-play games with in-app purchases. The prevalence of internet cafes and the country's strong economic growth are also contributing factors. As the market continues to evolve, it is expected that the Online Games market in Philippines will further expand, offering new opportunities for game developers and players alike.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Video Games market. Digital video games are defined as fee-based video games distributed over the internet. These include online games, download games, mobile games, and gaming networks. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.