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Southeast Asia Gaming Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022

The Southeast Asian gaming market is expected to record a CAGR of 8.5% over the forecast period 2022-2027. The increasing popularity of players in various sports and the increasing investment in internet infrastructure is the market.

New York, February 7, 2022 (GLOBE NEWSWIRE)-Reportlinker.com announces the release of the report “Southeast Asian Gaming Markets-Growth, Trends, Impact of COVID-19, and Forecasts (2022-2027)” did. https://www.reportlinker.com/p06227800/?utm_source=GNW

Main highlights
With the advent of 5G technology in 2020, investment in wireless networks for infrastructure is expected to increase. According to the report, global 5G wireless network infrastructure revenue will reach US $ 4.2 billion, an increase of 89% from US $ 2.2 billion in 2019. In addition, investment in 5G near radio network infrastructure will account for 6% of total revenue for communications service provider (CSP) wireless infrastructure in 2019, reaching 12% in 2020. This represents the operator’s motivation to take advantage of the opportunities offered. Fast and cost-effective service. 5G is expected to drive the Southeast Asian gaming market by improving performance 100 times faster than 4G networks, providing a better user experience.
The trend that is also booming in the regional gaming market is the rise of esports. eSports is essentially a video game competition. As the number of viewers on online platforms such as Twitch and YouTube grows, ads are expected to generate more revenue during the forecast period. In addition, at the Overwatch League Grand Final held on September 29, 2019, the number of viewers increased by 16% from last year, and the global AMA (average number of viewers) reached 1.12 million. The growing audience and trend towards sports has opened up new gaming opportunities in countries other than China, such as Indonesia, Vietnam and Malaysia.
While a great form of escapism from an ongoing crisis, video games also allow players to stay connected with friends and family through online multiplayer and group chat. Unlike other industries, Southeast Asian games are witnessing a surge in demand. The gaming industry is evolving based on influencer partnerships, in-app advertising, innovation, and gaming partnerships. In the long run, the industry will prosper even more.

Major market trends

Mobile segment with large market share

By 2021, the number of mobile online gamers in Southeast Asia will increase to 250 million. Indonesia, Malaysia, Thailand, Vietnam, Singapore and the Philippines are the six most important countries for mobile gaming in Southeast Asia.
The availability of free-to-play options is one of the key growth drivers for mobile gaming growth compared to personal computers. The advent of cloud-based mobile games will further drive this growth.
Esports is a relatively new concept in Southeast Asia compared to traditional games, but it is growing exponentially due to the growth of the gaming market in the region. By 2021, the number of mobile online gamers in Southeast Asia will increase to about 250 million, according to the All-Correct Games blog. Malaysia, Thailand, Vietnam, Indonesia, Singapore and the Philippines are the six most important countries for mobile gaming in Southeast Asia.
In addition, over 55% of mobile gamers are around 55 years old, and only 8% are teenagers. This is mainly due to the popularity of hyper-casual and casual games that do not require a lot of skills and can be played by all users. Hyper-casual games are monetized primarily through advertising. However, the mobile game market is seasonal and the popularity of games diminishes day by day. Therefore, it is difficult to predict the demand for new games, which is retraining the growth of the market.
On the other hand, with the advent of cloud gaming, the constant need for hardware upgrades has been eliminated, and players around the world will be able to play cloud gaming on existing devices and future devices that can support games played in the cloud even with low specifications. You can now play. The biggest opportunity for vendors in this segment is to access smartphone gamers who have a significant share of the gaming audience and prefer to play PC and console games on their mobile devices.
According to a Google study, at least one in three smartphone owners in the Southeast Asian market played mobile games at least once every seven days. With more than 82% of the online population in urban areas of Southeast Asia being gamers, mobile games far outnumber PC and console games.

Increasing Internet penetration to boost market growth

The online gaming market has achieved impressive volume. The main drivers of market size were the proliferation of the Internet and the proliferation of low-cost smartphones among urban and rural populations. This ecosystem is monetized through revenue sources such as in-app purchases, per-download payments, subscription services, in-app advertising, and incentive-based advertising.
With the proliferation of the Internet, major technology vendors are investing in online games, driving market growth in the region. For example, in September, Amazon accelerated its expansion into the MMORPG (Massively Multiplayer Online Role-Playing Game) gaming industry with the release of “New World.” In February 2021, Google LLC closed its in-house Stadia game development studio, turning Stadia into a platform that offers games and game streaming services from existing developers instead of developing its own games for the service. I refocused.
According to Akamai Technologies, gaming software downloads dominate the heavy internet traffic when updates are released. Software updates for the latest games generate huge amounts of traffic, equivalent to approximately 30,000 web pages. Therefore, multiple people in the same home trying to play online games at the same time can have a significant impact on the internet bandwidth of any home.
By the end of 2027, there were 4.4 billion 5G subscriptions worldwide, accounting for more than half of all mobile subscriptions, according to Ericsson Mobility Report 2021. By 2027, data traffic per smartphone in Southeast Asia and Oceania will grow at the fastest rate in the world, with 5G subscriptions estimated to reach 15 million by the end of 2021.
According to the survey, Southeast Asia and Oceania have more than 1.1 billion mobile subscribers. 5G subscriptions are estimated to reach up to 15 million by the end of 2021 and will continue to grow rapidly over the next few years, reaching around 560 million by 2027. Data traffic per smartphone grows at the fastest rate in the world in Southeast Asia. And Oceania will reach 46GB per month in 2027 — a CAGR of 34%.

Competitive landscape

The Southeast Asian game market is extremely competitive due to the large and small players in the market. The market appears to be reasonably focused on the key players in the market, adopting strategies such as product innovation, service innovation, mergers and acquisitions to extend reach ahead of competitors.

December 2021-Nintendo has launched a new website and online store in Thailand. This means Thai gamers don’t have to compete with exchange rates or create special regional accounts to enjoy the right prices for Nintendo software and hardware. Thailand and Singapore are the only countries in Southeast Asia that have their own Nintendo region. More than 30 countries in the Americas, Europe, and the Asia-Pacific region are benefiting.
October 2021-Tencent announced that the mobile game titled Honor of Kings has officially become the largest mobile game in the world. It was the first mobile title to generate US $ 10 billion in revenue worldwide.

Other benefits:

Excel-formatted market quote (ME) sheet
3 months analyst support
Read the full report: https://www.reportlinker.com/p06227800/?utm_source=GNW

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