In Southeast Asia, the mobile gaming sector’s rapid expansion is reshaping the digital landscape, compelling a deeper exploration of its burgeoning consumer base and the rise of the innovative gaming startup sector.
Before the COVID-19 pandemic, the region was a big player in the global gaming market, with data from GWI highlighting that 86% of internet users—approximately 584 million people—play games on mobile devices, and 46% have an active interest in gaming on PC or console. The eSports market in ASEAN (Association of Southeast Asian Nations) is large and expanding, with projections suggesting that 250 million people will play mobile games in the next few years.
We take a closer look at the thriving gaming industry and esports ecosystem in Southeast Asia
Countries like Indonesia, Malaysia, Thailand, Vietnam, Singapore, and the Philippines are leading in popularity for mobile games, which are growing faster than PC games due to their free-to-play models. This growth is part of a broader trend in the Asia Pacific region, which remains the world’s largest market by revenue, boasting over 26% growth in 2022 to reach USD 70 billion. Predictions indicate that by 2025, the market will soar to revenues of USD 87 billion, with India, China, and South Korea presenting significant growth opportunities due to high internet and smartphone penetration and large, tech-savvy populations.
A closer look at Southeast Asia’s mobile gaming market
The popularity of games in the region has surged due to the increased affordability, penetration of smartphones, and high-speed internet, making games more accessible than ever. Demographic factors such as a large, young population—with 61% of the ASEAN region under 35—and a rapidly growing middle class have further fueled this growth. As a result, it has become more than just a pastime; it’s an integral part of popular culture, influencing social interactions and driving technological development.
Popular online multiplayer games such as “Mobile Legends: Bang Bang” and “PUBG Mobile” have encouraged cross-border friendships, emphasised teamwork, and cultivated a spirit of healthy competition. This culture has led to the rise of game live-streaming and eSports tournaments and birthed a vibrant community of game developers and artists, pushing technological boundaries and improving internet speeds, hardware, and software.
The impact on Southeast Asia’s creative economy is also profound. Games such as Indonesia’s “DreadOut” series, Malaysia’s “Midwest 90: Rapid City” and Singapore Ubisoft’s “Skull and Bones” are a testament to the digital artistry and capabilities of the region’s game development market.
The industry’s growth has also opened doors to numerous job opportunities and entrepreneurial ventures. In Indonesia for example the online app and gaming market has contributed almost USD 2 billion to the country’s GDP with around 140,000 jobs created in 2021. The Southeast Asian market is positioned to have the market create more opportunities in areas such as game development, eSports management, live-streaming services, and hardware production.
Consumer trends in the ASEAN gaming market
Consumer trends highlight several crucial insights for startups aiming to penetrate or expand their presence. One effective strategy is a robust localisation strategy. This strategy involves tailoring various elements of their products, such as art, characters, and dialogues, to align with local tastes and cultural norms.
For example, in the game Mobile Legends Bang Bang, the introduction of the character Badang—a figure from local Singaporean and Malaysian folklore—illustrates how integrating popular cultural references can significantly boost a game’s appeal. This approach resonates more deeply with local audiences and strengthens the brand’s connection to its customers.
Integrating robust community engagement and social sharing features has proven essential, fostering a sense of belonging and encouraging organic growth through player interactions. Cheeri Leo, Director of Sales Marketing APAC at Twitch, emphasises the significant role of live streams as powerful conversion tools in the gaming industry. According to research by Twitch, gamers in ASEAN are more inclined to purchase or download games that they have witnessed others play, underscoring the influence of live streaming.
Livestreams introduce and support the community in engaging ways. To elevate marketing strategies, brands must identify and engage the right audience. Then, they must interact with them live on stream and create a memorable impact. This approach leverages the dynamic nature of livestreams to enhance brand visibility and consumer engagement effectively.
Furthermore, startups must tailor their monetisation strategies to align with specific business models, whether through in-app purchases, advertisements, or premium versions. Vice President and General Manager for SEA Rishi Bedi underscores the crucial role of strategic planning in in-game advertising. He points out that advertising and games share a unique relationship, primarily due to the prevalence of free-to-play models that lead developers to monetise their content through ad space. Companies that master advertising in this domain are poised to secure substantial rewards in the future.
Southeast Asia has proven fertile ground for the flourishing mobile gaming industry. With a diverse and ever-expanding consumer base, this vibrant market offers numerous opportunities for gaming startup companies to innovate and grow. The industry’s future appears promising, with trends like cloud gaming and the rise of AR/VR hinting at new areas for growth. By tapping into local gamers’ unique preferences and behaviours, startups can strategically position themselves to exceed the expectations of this dynamic demographic.