The gaming industry was monopolized by some huge firms from Europe, Japan, and the United States during the 20th century. But since the 2000s, there have been changes in this trend. The E-sport market in Southeast Asia started developing since small indie developers can develop easily.
Those small developers can easily target the global market, all because of the development of mobile devices and the internet. The internet eased those small developers in sharing the creativeness and products with so many gamers all around the world, with no boundaries.
The Potential Growth of E-Sport Market in Southeast Asia
Southeast Asia has lots of countries that are also reckoned with by its various game companies. The mobile games’ growth rates in Southeast Asia between 2014 and 2017 reached over 180%. The number is predicted to keep growing for the upcoming five years.
The CAGR or Compound Annual Growth Rate of Southeast Asia’s gaming industry is going to reach 8.5% between 2020 and 2025. The biggest Southeast Asia countries that have the biggest gaming markets include Indonesia, Thailand, Malaysia, Singapore, Vietnam, and also the Philippines.
One of various factors that drive the game industry’s growth in Southeast Asia countries is the internet infrastructure’s development and the emergence of the 5G technology which appeared in 2020. E-sport also started growing and developing because there are esports contents on the internet.
Gaming and E-Sport Industry Opportunity in Indonesia
The governments of some countries in Southeast Asia are like the government of China, they are involved in the local gaming industry. But the governments in Southeast Asia countries set some regulations that are looser than the ones set in China.
The foreign gaming and e-sport companies have a much better chance to expand the market in many countries in Southeast Asia, such as in Indonesia. Indonesia is one of the biggest countries in the world. This country is the 4th country that has the biggest population.
The population is dominated by the young generation who really loves to build online communities. The popularity of esports and mobile games in this country is a golden opportunity that the local game developers need to seize.
Opportunity in Singapore’s Gaming Industry
One unique thing about Southeast Asia is that the gamers spending in its countries is directly proportional to GDP or Gross Domestic Product per capita in every single country. For many years, Singapore has been considered the powerhouse or economic center in Southeast Asia.
Even though the population of Singapore is much smaller than the population in Indonesia, the rate of internet penetration is exponentially superior. It reached 80% of Singapore’s total population. Besides, 60% of internet users in Singapore are classified as active gamers who spend a lot on games.
Since the pandemic attacked all countries around the world, the e-sport market in Southeast Asia kept rising. People spent most of their time playing games at home instead of doing any other activities. Gaming industry is expected to keep growing which means Southeast Asia is a great e-sport market.