In 2024, Southeast Asia’s video game industry generated $5.37B in revenue, up 5.2% year over year. According to analysts’ forecasts, the market will reach $6.47B by 2029. The region already has 285.82 million players, and that number continues to grow. Key growth drivers continue to be high mobile penetration, well-established gaming communities, and the rising popularity of esports, although a noticeable slowdown in growth is expected in 2025.

Who’s behind the estimate?

Niko Partners has been tracking Southeast Asia’s gaming market for 11 years. The latest findings are based on its proprietary market model with a five-year forecast horizon, as well as a series of player behaviour reports that include a large-scale survey of 3,131 gamers from different countries in the region. The methodology combines quantitative revenue and audience data with qualitative insights into user habits and preferences.

Why the region remains a “tough nut to crack” for businesses

Southeast Asia is known for high barriers to entry. Many languages, country-by-country regulations, cultural differences, and player preferences that vary widely make expansion a complex logistical and marketing challenge.

At the same time, the sheer size of the audience is remarkable. At the latest M6 Mobile Legends World Championship, peak concurrent viewership reached 4.12 million. For comparison, Major League Baseball (MLB), in its best season since 2018, reached only 2.23 million viewers at peak. The numbers speak for themselves: a young, tech-savvy population sees games as an integral part of everyday life.

Revenue is growing, but 2025 will be a pause

In 2024, the region’s total revenue amounted to $5.37B (+5.2%). For 2025, a more modest increase is forecast amid economic and political headwinds in a number of countries. The expected market size in 2025 is estimated at $5.47B (+1.8%). Indonesia and the Philippines are seeing a slight dip, which analysts attribute to economic problems and a wave of protests in both countries.

Before we get to the numbers, two terms are worth clarifying. ARPU means the average annual revenue per user, and CAGR reflects the compound annual growth rate over the selected period. Key metrics from 2024 to 2029 are as follows:

  • Revenue: $5.37B (2024) → $5.47B (2025) → $6.47B (2029), five-year CAGR is 3.8%.
  • Audience: 285.82 million players in 2024 (+3.1%) → 290 million in 2025 (+1.5%) → 324.4 million by 2029, CAGR of 2.6%.
  • ARPU: $18.80 in 2024 (+2%) → moderate growth in 2025 → $19.96 by 2029, CAGR is 1.2%.

Gamers in the region play less, but socialise more

A survey of 3,131 players provided a detailed picture of the audience’s demographics, habits, and engagement. Among the key observations, several notable trends stand out:

  • More than 45% of players want in-game chat and competitive features like rankings or leaderboards.
  • 52% of the region’s gamers watch game streams, which is higher than the Asia–MENA average (45%).
  • Average weekly playtime fell to 15 hours from 21.8 hours a year earlier.
  • The share of non-paying players rose by 10–20 percentage points in each country, forcing companies to rethink their monetisation and marketing strategies.

Esports titles set the tone

A steady trend of the past decade remains unchanged: competitive and esports genres dominate outright in the region, although preferences vary significantly from country to country. In the mobile segment, Mobile Legends remains the leader in Indonesia, Malaysia, and the Philippines, while Arena of Valor takes the top spot in Thailand and Vietnam.

Mobile gaming is becoming increasingly popular

Alongside video games, mobile gambling games are also gaining popularity in Southeast Asia. Most often, players prefer online casino apps that offer live dealer games. While looking for more information, we came across a site about the game Funky Time, we find the APK here. The app’s download statistics reflect a positive trend in user interest in such games.

This is also driven by the fact that smartphones are widespread in the region and the mobile internet is of high quality. In this respect, many regions around the world look to Southeast Asia as a benchmark, including Nigeria, where people hope for stable connectivity.

Without localisation, you won’t get far

Localisation in Southeast Asia goes far beyond text translation and includes cultural nuances, UI adaptation, and meeting audience expectations. According to the report, 87% of the region’s gamers expect some form of localisation. In Thailand and Vietnam, demand is highest: more than 91% of players consider it a key factor when choosing new projects.

Digital wallets instead of credit cards

The region’s payments landscape is shaped by low credit card penetration (except in Singapore) and a mass shift to digital wallets. This “local” model requires companies to be flexible in their choice of payment channels:

  • Digital wallets are the most popular way to pay for games in almost all countries in the region.
  • 9% of in-game goods buyers made purchases through third-party stores, and a smart choice of sales channels can significantly expand reach.

The NikoIQ analytics platform consolidates data on the gaming market in Asia and MENA into a single online database, including market models, forecasts, revenue analytics, and behavioral insights. Niko Partners offers syndicated reports, subscriptions for ongoing analysis, and consulting projects, including a special regional package for Southeast Asia.