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Preface
The global gaming industry has entered a phase of stable, mature growth – and Southeast Asia is fast emerging as its next powerhouse. With a population of more than 600 million, this diverse region is being transformed by rapid mobile internet adoption, improved digital infrastructure and large, youthful demographic. In 2024, gaming revenues across the six major Southeast Asian markets exceeded USD 12.8 billion, underlining both the sector’s resilience and its shift from a once “emerging” market to a strategic region that global gaming companies can no longer afford to ignore.
The key to understanding this market is recognising its inherently mobile-first nature. In Indonesia, for example, 99.1% of internet users access the web via their smartphones. Affordable entry-level Android devices have opened the door for hundreds of millions of new players to join the gaming ecosystem. This widespread mobile adoption has fuelled one of the world’s most dynamic mobile eSports scenes. Across Southeast Asia, mobile eSports have grown far beyond a gaming category – they have become a cultural phenomenon deeply embedded in youth culture, enjoying mass participation. In countries such as Vietnam and Indonesia, major eSports tournaments now attract larger audiences than many traditional sports events. From both a commercial and brand-building perspective, the eSports sector has become a central arena for the gaming industry and a major driver of its growth.
Driving this strong growth is a monetisation landscape that sets Southeast Asia apart. The Free-to-Play (F2P) model remains the industry’s dominant commercial framework, with revenue generation following two main paths – advertising-based and in-app purchase-based. In markets characterised by vast user numbers – such as Indonesia and Vietnam – advertising remains the primary channel through which developers convert large user bases into revenue. By contrast, in markets like Singapore and Thailand, where players show a higher willingness to pay, in-app purchases serve as the main source of revenue. Importantly, player spending behaviour across the region tends to be rational rather than impulsive – users are prepared to pay for content they consider genuinely valuable. This value-oriented mindset highlights the need for developers to build monetisation systems that prioritise long-term sustainability and user experience.
Despite its vast commercial potential, Southeast Asia’s gaming market presents a key challenge – the complexity of its payment systems. With low credit card penetration and a high proportion of unbanked consumers, global payment solutions often struggle to operate effectively. This has paved the way for the rapid rise of digital wallets: in the form of “super apps”, these wallets have become deeply embedded in daily life and now serve as the default method for in-app purchases.
Each country in the region has developed its own distinct payment ecosystem. In the Philippines, the market is dominated by a single player, GCash, while in Indonesia, three major platforms – GoPay, OVO and DANA – share the lead. Vietnam’s payment landscape, by contrast, is shaped by two key players, MoMo and ZaloPay.
Given the highly localised nature of the Southeast Asian market, effective monetisation depends on partnering with established local payment services providers. This approach is no longer optional but an essential part of any monetisation strategy. It allows game developers to focus on content creation while ensuring every player enjoys a seamless transaction experience through platforms they know and trust – ultimately converting large user bases into sustainable commercial value.
From emerging market to the next global powerhouse: how Southeast Asia is reshaping global gaming
Indonesia leads Southeast Asia’s $12.9 billion gaming boom
Southeast Asia’s top six gaming markets – Indonesia, the Philippines, Thailand, Vietnam, Malaysia and Singapore – are on a trajectory of rapid growth, demonstrating remarkable resilience and immense potential. After a brief slowdown in 2022, these markets regained strong momentum in 2023 and are expected to continue expanding steadily. By 2024, total gaming revenue across the six Southeast Asian markets had risen to nearly $12.86 billion.
From a market structure perspective, Indonesia indisputably stands as the region’s leading growth engine. With its large population and strong preference for mobile gaming, the country contributes nearly 30% of the region’s total revenue and is expected to retain its leading position in the years ahead. Close behind are the Philippines, Thailand and Vietnam, which together form the middle tier of the regional market, each characterised by distinct growth drivers and sizeable player communities. Next are Malaysia and Singapore: although these two nations have smaller market shares, their advanced digital infrastructure and higher consumer spending power position them as high-value, premium segments within the region.
Overall, Southeast Asia’s gaming industry demonstrates healthy, broad-based growth – led by Indonesia and reinforced by steady progress across multiple markets. This combination of internal diversity and collective momentum makes the region an increasingly attractive destination for global game developers and publishers.
Smartphone adoption underpins user growth, while network infrastructure and policy support drive growth
The strong growth of Southeast Asia’s gaming market is driven by several core factors that together shape a vibrant, mobile-first ecosystem. Chief among them are the rapid expansion of mobile internet access and the increasing affordability of smartphones – the foundations of the region’s market growth. By 2024, 99.1% of internet users in Indonesia accessed the web through mobile devices, while entry-level Android phones priced below $150 have significantly expanded the player base, pushing the gaming population of countries including Vietnam past 58 million. This trend has led publishers to prioritise optimisation for mid- and low-end devices, ensuring broader accessibility and reach across the region.
Building on this foundation, the modernisation of digital infrastructure has injected new momentum into the market. Firstly, the rapid rollout of 5G networks is greatly enhancing users’ gaming experience, particularly for latency-sensitive competitive titles. By the end of 2024, Malaysia’s 5G coverage had reached 80.2%, while major urban centres in Thailand exceeded 90% – reducing network latency to below 30 milliseconds and enabling smooth performance for multiplayer online battle arena (MOBA) and tactical shooter games. Secondly, the diversification of payment methods has helped address long-standing monetisation challenges. Digital wallets such as TrueMoney and GrabPay, along with carrier billing options, are now widely used across the region, reaching large numbers of unbanked users. These solutions have significantly lowered payment barriers and boosted player conversion rates for in-game spending.
Finally, top-down policy support has provided a solid foundation for the long-term, sustainable growth of the industry. Governments across Southeast Asia are increasingly recognising the economic and cultural value of eSports and have introduced a range of supportive initiatives. In 2021, Thailand officially recognised eSports as a professional sport and established a dedicated development fund, while Malaysia allocated tens of millions of ringgit to strengthen its eSports infrastructure. These policies have not only legitimised the gaming sector – making it a mainstream part of the economy – but also attracted significant domestic and international investment through tax incentives and financial support, creating a favourable environment for industry growth.
Together, these factors – from expanding user bases and technological advancement to monetisation models and policy frameworks – have established a strong basis for the continued growth of Southeast Asia’s gaming sector.
