Mobile Gaming Revenue in Southeast Asia Crosses $10 Billion
The mobile gaming market in Southeast Asia has crossed the $10 billion annual revenue threshold for the first time, according to a comprehensive report published by Niko Partners and Newzoo. The milestone, achieved in the fiscal year ending December 2024, represents a 22 percent year-over-year increase and firmly establishes the region as one of the fastest-growing mobile gaming markets in the world.
Indonesia led the charge, contributing approximately $3.8 billion to the total, followed by Thailand at $1.9 billion and Vietnam at $1.5 billion. Malaysia contributed $1.2 billion, while the Philippines and Singapore rounded out the top six at $1.0 billion and $600 million respectively. The remaining revenue came from smaller markets including Myanmar, Cambodia, and Laos.
"The $10 billion milestone is significant because it signals that Southeast Asia has transitioned from an emerging market to a core global market for mobile gaming," said Lisa Hanson, president of Niko Partners. "Publishers who previously viewed SEA as a secondary consideration are now building dedicated strategies for the region."
The growth was fueled by several factors. Smartphone penetration across the region reached 78 percent in 2024, up from 71 percent the previous year, with affordable devices from brands like Xiaomi, Realme, and Samsung making gaming-capable hardware accessible to a wider population. Meanwhile, improving mobile internet infrastructure, particularly the expansion of 5G networks in urban centers, has reduced latency and improved the online gaming experience.
In-app purchases remained the dominant revenue model, accounting for 65 percent of total earnings. However, advertising-based revenue saw the most significant growth at 38 percent year-over-year, driven by the popularity of hyper-casual and casual games that rely on ad monetization. Subscription-based models, while still small at 8 percent of revenue, showed promising growth of 55 percent.
Regional analyst Kumar Rajagopal from Digital Frontier Research highlighted an important demographic shift. "The average age of mobile gamers in SEA is trending upward. We are seeing more 25-to-40-year-old professionals spending on gaming. This demographic shift brings higher average revenue per user and more sustainable spending patterns," he noted.
Looking ahead, the report projects that SEA mobile gaming revenue will reach $14 billion by 2027, driven by continued infrastructure development and the entry of new players into the market.