Gaming market in Southeast Asia - statistics & facts
One of few industries that did not experience major setbacks throughout the COVID-19 pandemic, the global gaming market is catering to a constantly growing consumer base. While many video gamers took their first virtual steps on PC and console, it is now mobile gaming that is both the fastest growing and most lucrative segment. To companies and industry experts alike, Southeast Asia poses one of the most attractive mobile gaming markets worldwide, a status reinforced by the region's ever-growing player base of over 100 million.
In-game advertising relies heavily on collected user data for targeted programmatic ads. The App Tracking Transparency (ATT) framework implemented by Apple in April 2021 has hampered this practice on iOS systems, as users are now presented with the option of opting out of in-app data capture. Given that Southeast Asia has a significantly higher penetration of Android users, this is not as big a problem for advertisers as in other regions. However, as data privacy is becoming increasingly relevant to consumers across all software systems, publishers will have to find ways to incentivize more users to opt-in to data capture.
Singapore-based Garena is the leading local publisher of mobile games in Southeast Asia. Their flagship app, Vietnamese-developed Garena Free Fire, is a free-to-play battle royale game supported through in-app purchases. Its popularity in the region can be partially attributed to its good performance across all types of smartphones, including low-specification models.
A Garena Free Fire tournament in Singapore peaked at over 5.4 million viewers, and individual streamers in the Philippines generated millions of followers. Many companies bank on the potential exposure these numbers bring and collaborate with eSports agencies to get involved in the industry. Accordingly, Insurance company FWD Group has partnered with ONE eSports on its lifestyle app Omne, and telco giant Singtel has launched eSports platform PVP Esports. Moreover, several Southeast Asian countries and institutions are allocating resources to promote eSports, including an annual fund for eSports development by the Malaysian government and a Bachelor of Science in eSports by the Lyceum of the Philippines University (LPU).
Mobile is the most widely accessible system
Continuous investments in internet penetration and increased smartphone ownership are among the main catalysts for Southeast Asia's booming mobile gaming industry. As many consumers in the region already own a smartphone, games using mobile apps are more accessible than those requiring a console or a PC. From a developer perspective, mobile games are attractive for their different monetization opportunities. Many games initially attract a huge number of players by being free-to-download and later generate revenue through in-game purchases or advertisements.In-game advertising relies heavily on collected user data for targeted programmatic ads. The App Tracking Transparency (ATT) framework implemented by Apple in April 2021 has hampered this practice on iOS systems, as users are now presented with the option of opting out of in-app data capture. Given that Southeast Asia has a significantly higher penetration of Android users, this is not as big a problem for advertisers as in other regions. However, as data privacy is becoming increasingly relevant to consumers across all software systems, publishers will have to find ways to incentivize more users to opt-in to data capture.
Singapore-based Garena is the leading local publisher of mobile games in Southeast Asia. Their flagship app, Vietnamese-developed Garena Free Fire, is a free-to-play battle royale game supported through in-app purchases. Its popularity in the region can be partially attributed to its good performance across all types of smartphones, including low-specification models.
Team players: the synergy of mobile gaming and eSports
The popularity of Garena Free Fire is a prime example of how mobile gaming and eSports in Southeast Asia are constantly cross-influencing each other. The momentum of the mobile gaming segment also translates to eSports, as many players seek out streamers and professional leagues to watch others compete in their favorite games.A Garena Free Fire tournament in Singapore peaked at over 5.4 million viewers, and individual streamers in the Philippines generated millions of followers. Many companies bank on the potential exposure these numbers bring and collaborate with eSports agencies to get involved in the industry. Accordingly, Insurance company FWD Group has partnered with ONE eSports on its lifestyle app Omne, and telco giant Singtel has launched eSports platform PVP Esports. Moreover, several Southeast Asian countries and institutions are allocating resources to promote eSports, including an annual fund for eSports development by the Malaysian government and a Bachelor of Science in eSports by the Lyceum of the Philippines University (LPU).
