Games - Southeast Asia

Southeast Asia

The Games market in Southeast Asia is set to witness substantial growth in the coming years.
According to projections, the total revenue in this market is expected to reach a staggering US$1,372.00m by 2022.
This indicates a significant rise in the economic potential of the gaming industry in the region.
Furthermore, it is anticipated that the Games market will continue to expand at an annual growth rate of 8.28% from 2022 to 2027, resulting in a projected market volume of US$2,044.00m by the end of the forecast period.
This growth trajectory demonstrates the increasing popularity and demand for gaming products and services in Southeast Asia.
When examining the specific revenue streams within the Games market, in-app purchases (IAP) are expected to contribute significantly.
Projections suggest that IAP revenue will reach US$1,046.00m in 2022, highlighting the strong engagement of users within mobile gaming applications.
Paid app revenue, on the other hand, is projected to reach US$27.53m in 2022.
This revenue stream represents the income generated from users purchasing games upfront, showcasing the continued interest in premium gaming experiences.
Advertising revenue within the Games market is also expected to witness substantial growth, projected to reach US$298.50m by 2022.
This indicates the increasing investment from advertisers in reaching the large and engaged gaming audience in Southeast Asia.
In terms of user engagement, the number of downloads in the Games market is projected to reach a remarkable 7,501.00m downloads in 2022.
This figure highlights the immense popularity of gaming applications in Southeast Asia and the region's attractiveness to developers and publishers alike.
Lastly, the average revenue per download is currently expected to amount to US$0.18.
This metric provides insights into the monetization potential of gaming applications, indicating the average income generated per download in the Games market.
When considering a global comparison, it is noteworthy that in China generates the highest revenue in the Games market, projected to reach an impressive US$62.86bn in 2022.
This observation underscores in China's dominant position in the global gaming industry and its significant contribution to the overall market revenue.
In conclusion, the Games market in Southeast Asia is poised for substantial growth, with projected increases in total revenue, in-app purchases, paid app revenue, advertising revenue, and the number of downloads.
These promising figures indicate a thriving gaming industry in the region and highlight the potential for further expansion and innovation.

Key regions: Europe, India, United States, South Korea, Asia

Market

Region

Region comparison

Currency

Analyst Opinion

Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

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 case market dynamics change.