Lately, one of the biggest attractions for analysts, experts, and developers has been the gaming market in Southeast Asia. In recent years there has been a constant rise in PC and mobile gaming revenues from this macroregion, and industry analyst Niko Partners predicts that trend will keep rising, at least, until 2023.
The Southeast Asian area covers approximately 4.5 million square kilometers, around half of the United States territory. It is composed of 11 countries: Brunei, Cambodia, East Timor, Laos, Myanmar, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Being the latter six the ones to generate almost 97% of the revenue in the mobile games market.
A recent Google survey showed the immense extent of mobile gaming in the region. The survey manifested that since 2014, over 1/3 of smartphone owners play daily on their device at least once a week.
According to the previously mentioned firm, 90% of mobile gamers play eSports right now. Besides, they suggest that 95% of PC gamers are currently into eSports in one way or another.
Niko Partners determined that revenues from Southeast Asia and Taiwan PC and mobile gaming sector would rise from $5bn in 2019 to $8bn in 2023. A total revenue rise of $3bn, from which $2.31bn will come from mobile users, and $0.95bn from the PC division.
A series of circumstances get together to affirm that the mobile gaming sector in Southeast Asia and Taiwan will grow considerably in revenues.
The first factor is the constant increase of smartphone users. Niko said that for 2023 there will be 679 million smartphone users, 150 million more than current users. Around 40% of smartphone users play mobile games.
In a similar way, the number of mobile gamers from tablet devices keeps going up. Although, the overall sales of these devices have declined.
Additionally, the upcoming deployment in 5G data connections support will certainly drive growth in the region. In 2019, the internet user penetration in Southeast Asia and Taiwan is about 77% and is expected to surpass 99% by 2023 majorly via smartphones.
Niko Partners forecast a rise in mobile gamers from 227m to 290.2m, a 28% increase. While in PC gaming the numbers are expected to rise from 154.3 m to 186.3m, a 20% increase.
Southeast Asia and Taiwan's mobile gaming market develops each time more interest from game developers due to there are no significant legal barriers in comparison with other Asian markets. Moreover, about four languages are enough to launch a game in the entire region, currently rising as the market with the fastest growth rates.
This year, the Singaporean company Garena surpassed the $1 billion in revenue thanks to Free Fire, a battle royale with currently more users than Fornite and PUBG combined in the Southeast Asian area.
A gamer survey, interviews with important executives from different companies, and market share estimate from gaming companies, online gaming trend analyses on central topics; lists of current top games, regulations, and possibly grow inhibitors, were all included in Niko Partners' methodology research.