The gaming industry in Southeast Asia has been growing consistently for years and is likely to reach USD 13.12 million in 2024. Statista Research reports that the games segment will have a compound annual growth rate (CAGR) of 8.05%, achieving a market volume of USD 17.88 million by 2028. Moreover, user penetration in 2024 will be 40%, but projections indicate it will reach 338.2 million people by 2028, representing an increase of 47%.

Similarly, the eSports ecosystem in Southeast Asia is also significantly impacting the region, with countries like Indonesia seeing its mobile gaming sector proliferate. eSports—short for electronic sports—are organised video game cash-prize competitions broadcasted live for audiences to stream the content. Due to the tournaments online, users get to see a well-structured and well-produced video show full of individual or team gamers competing.

There is a shift in industry dynamics and gaming trends in Southeast Asia

Some popular gaming startups include Yield Guild Games, Playvegas88, Tier One Entertainment, EVOS eSports, and Garena. Singapore-based SEA Limited owns an online game development company called Garena. It develops games, publishes free games, and builds stages for eSports players to compete against each other.

Factors contributing to gaming and eSports in ASEAN

The Association of Southeast Asian Nations (ASEAN) provides a large market for the gaming and eSports industries to thrive. Here are some reasons why it is the ideal place for players and other stakeholders:

Presence of a young population 

Young people in ASEAN represent the market of the present and the future. They are well-versed in accessing the internet, downloading files, reading content, and so on.

One of the most popular social media sites among the youth is TikTok, which has not been left behind in gaming. It offers an eSports solution for streaming matches on the app, enabling users to play games like Garden for Good. It involves caring for a virtual garden and amassing points, which can be used to fund the Feeding America organisation.

High smartphone penetration 

As far back as 2022, most of the largest markets in Southeast Asia had a smartphone penetration of over 90% of their population. Indonesia led the way with 99.4%, the Philippines with 99.1%, Vietnam with 98.1%, Thailand with 98.1%, Malaysia with 97.6%, and Singapore with 94.4%. 

More and more devices are entering the market, making it easier for gamers to acquire one of the latest smartphones. Since new devices are costly, many opt to pay using the Buy Now Pay Later model, where users can get enough money to buy the phone now and clear the bill later.

Mobile gaming popularity 

Technological advances, such as virtual reality (VR) and augmented reality (AR), have enhanced the gaming experience, making it more realistic. They deliver immersive and interactive elements when users enter the playing platforms, enhancing the games’ popularity.

Mobile app play stores provide frequent app updates, meaning developers can fix bugs in real-time, ensuring a smoother, more enjoyable experience. Moreover, modern-day games offer multiple outcomes—depending on your choices—and much more complex and challenging opponents, which creates excitement.

Often, mobile devices distract users, helping them de-stress or entertain themselves. Games are now mobile-friendly and easy to install and play without registering, making them popular among security-conscious players.

Local game development gaining traction 

Companies like Sky Mavis are leading the charge in boosting local game development in Southeast Asia. They are known for their game Axie Infinity, which enables gamers to enter a virtual world where they can collect, trade, and earn non-fungible tokens (NFTs), which they can exchange for cryptocurrency.

Rising disposable income

Finally, ASEAN residents earn increased disposable income as they get better jobs and move up in societal classes. Better employment means better wages and the citizens are willing to spend more to be entertained.

Potential future growth of the gaming and esports market 

Based on past trends, the eSports ecosystem in Southeast Asia will continue to grow. Yet, the digital landscape comes with challenges in many sectors. Some problems to overcome include inadequate investment, tech integration issues, and user adoption occurring slower than people would want. 

Furthermore, every user is concerned about their privacy, highlighting how often the region has faced problems with cybercriminals. Cybersecurity should be the most critical issue, especially with users encouraged to handle in-game purchases cautiously. 

Despite the many concerns, the gaming industry in Southeast Asia is doing well. Analysing opportunities for prospects, game developers, investors, and other brands will impact the industry. 5G technology can make a big difference to the community with faster speeds, easier streaming, and storage.

The gaming and eSports companies must continue to market the new technologies to boost online viewership. They can host tournaments, engage players and viewers from different nationalities, and provide a multi-language option for translations, which will make everyone’s experience better.