APAC Gaming Market Outlook to 2030

APAC Gaming Market Overview

• The APAC Gaming market is currently valued at USD 197 billion, based on a five-year historical analysis. This market is primarily driven by the increasing popularity of online gaming across various platforms, including PC, console, and mobile. The rapid expansion of digital infrastructure, particularly with the rise of cloud gaming and 5G networks, has broadened the gaming ecosystem across the region. APAC, being home to the largest number of gamers globally, is witnessing strong growth, bolstered by high internet penetration and affordable access to gaming platforms.

• Market dominance is concentrated in key countries such as China, Japan, and South Korea, due to their well-established gaming industries, advanced technological frameworks, and strong governmental support. These countries serve as gaming powerhouses with contributions from mobile and console gaming markets. Meanwhile, Southeast Asian countries like Vietnam, Indonesia, and the Philippines are experiencing rapid growth, driven by a younger, tech-savvy population embracing mobile gaming at unprecedented rates.
• Government initiatives are also playing a critical role in the gaming industry's growth. For instance, China has implemented policies encouraging the development of the gaming industry, including tax incentives for gaming companies. South Korea, known for its strong gaming culture, continues to provide support through dedicated gaming venues and hosting international gaming events. Additionally, in 2023, Malaysia announced a USD 100 million fund dedicated to building gaming hubs, accelerating growth in the country's gaming sector.

APAC Gaming Market Segmentation

• By Game Type: The market is segmented by game type into mobile gaming, console gaming, and PC gaming. Mobile gaming, fueled by the widespread use of smartphones, dominates the market with a share, particularly in Southeast Asian countries where affordable mobile devices and strong internet penetration are driving mass adoption. Console gaming is popular in countries like Japan and South Korea, where legacy brands like Sony and Nintendo maintain a strong presence. PC gaming remains a cultural staple in countries like China, where internet cafes and professional gaming leagues contribute to its sustained growth.

• By Revenue Model: The market is further segmented by revenue model into in-game purchases, game downloads, and subscription-based services. In-game purchases are the largest revenue contributor, especially in mobile games such as PUBG Mobile and Honor of Kings. Game downloads from platforms like Steam and PlayStation Store also generate revenue, while subscription-based services like Xbox Game Pass and PlayStation Plus are gaining traction as gamers shift towards recurring revenue models.

APAC Gaming Market Competitive Landscape

The APAC Gaming market is highly competitive, with global and regional companies vying for market dominance. Leading companies like Tencent, Sony Interactive Entertainment, and NetEase dominate the market through strong game portfolios and strategic partnerships.

APAC Gaming Industry Analysis

Growth Drivers

• Rise of Mobile Gaming: Mobile gaming continues to dominate the APAC gaming landscape, driven by an estimated 5.2 billion smartphone users in the region in 2024. With affordable data plans and mobile internet widely available, particularly in emerging markets like India and Indonesia, mobile gaming has become accessible to a broader audience. Games like PUBG Mobile and Free Fire are immensely popular, especially among younger players, contributing to the growth of mobile gaming tournaments and streaming platforms in countries like the Philippines and Malaysia.
• Growing Digital Infrastructure and 5G Networks: The expansion of 5G networks across key APAC markets is a growth driver for the gaming industry. South Korea, for instance, had 15.93 million 5G subscribers by 2023, enabling real-time multiplayer gaming experiences and cloud gaming. Similarly, Japan and China are expanding their 5G networks to cover the majority of their populations by 2024, further boosting the gaming sector. The rollout of 5G technology in Southeast Asia is also facilitating smoother gaming experiences for users in Vietnam, Thailand, and the Philippines.
• Increase in Streaming and Esports Viewership: The rising popularity of streaming platforms such as YouTube Gaming and Twitch is helping to foster a growing ecosystem of esports and game streaming in the APAC region. Streaming viewership is projected to reach 500 million in 2024, driven by the rise of mobile esports and online gaming communities in countries like India and Indonesia. Esports tournaments are increasingly gaining sponsorships from major brands, further driving the gaming industry's growth.

Market Challenges

• Regulatory Issues and Content Restrictions: The APAC gaming market faces regulatory hurdles, particularly in markets like China, where the government imposes strict regulations on gaming content and playing time for minors. In 2022, China introduced a new policy restricting under-18s to just three hours of gaming per week, impacting game developers. Countries like India also face regulatory challenges, with periodic bans on popular games such as PUBG Mobile due to concerns over data privacy and content moderation.
• High Development Costs for AAA Games: The cost of developing high-quality AAA games has increased , creating barriers for smaller game development companies. Large game studios such as Tencent and Sony are better positioned to invest in the development of new games, but indie developers in markets like Southeast Asia often struggle to compete with limited budgets and resources. The increasing demand for high-quality graphics and immersive gaming experiences places pressure on developers to invest heavily in research and development.

APAC Gaming Market Future Outlook

The APAC Gaming market is expected to witness sustained growth over the next five years, driven by rising mobile gaming penetration, expanding digital infrastructure, and growing participation in esports and online streaming. Countries like China, Japan, and South Korea will continue to dominate the market, while emerging markets such as Indonesia, Vietnam, and Thailand offer growth opportunities due to their youthful demographics and rapidly improving internet connectivity.

Future Market Opportunities

• Investment in Gaming Infrastructure: There is an opportunity for investment in gaming infrastructure across APAC. Countries like China and South Korea are leading the way with dedicated gaming arenas and esports venues. South Korea is building an esports stadium in Seoul, set to open by 2025. Southeast Asian nations like Vietnam and Indonesia are also making strides in building esports and gaming hubs to attract international tournaments and enhance their regional gaming capabilities.
• Cross-Platform Gaming and Cloud Gaming Expansion: Cross-platform gaming is another emerging opportunity in the APAC region, as gamers increasingly seek interoperability between consoles, PCs, and mobile devices. Cloud gaming services such as Google Stadia and Xbox Cloud Gaming are poised to gain traction as 5G becomes more widespread, providing seamless gaming experiences without the need for expensive hardware. Emerging markets like Malaysia and Thailand are expected to benefit from this trend as cloud gaming expands accessibility to a larger gaming audience.