The mobile gaming industry in Asia is booming, and it's only just getting started. According to experts, one of the main drivers of this growth is the significant increase in mobile broadband users in the region. From 2008 to 2021, the number of users grew from 181 million to 1.2 billion, largely due to the rapid adoption of 5G technology. According to a recent report, the number of 5G users in the region is expected to reach 600 million by 2026. This will provide gamers with lightning-fast speeds and a seamless gaming experience, making mobile gaming even more appealing to users.
Another major contributor to the growth of the mobile gaming industry in Asia is the rising GDP per capita. The GDP per capita in the region has more than doubled from 2008 to 2022, and in certain countries like Vietnam, it has even tripled. Robel Getaneh, the founder of Getaneh Global, a private investment firm, attributes this to a "3-part combination of rising incomes, cheap smartphones, and modern banking." He points out that "since 2008, middle-class families in Asia have exploded in size and so has a craving for a higher standard of living and leisure."
Getaneh notes that mobile gaming has been a standout industry in the last 15 years, and the growth of the global mobile gaming industry has been nothing short of spectacular. In 2008, the global mobile gaming industry generated $4.3 billion annually, and by 2021, that number had swelled to a staggering $90 billion. According to Getaneh, this growth can be attributed to the introduction of in-app purchases in 2009.
"Developers made their games free to play, including persuasive but optional purchases," Getaneh explains. "This format initially brought in an influx of new players, which created higher server costs for developers. But over time, players who stayed in the game long enough tended to make frequent in-app purchases."
This revolution has also been a boon for players, with the number of games on the app store increasing from 44,000 in 2008 to 1,200,000 in 2021. Some of the biggest winners in the Asian mobile gaming industries include Tencent, Netease, and Nintendo. However, it's not just these well-funded behemoth companies that are taking the cake; smaller, more agile companies have also made big splashes with gamers. In fact, these companies are attracting more forward-thinking investors as the industry grows.
"My favorite type of gaming companies to invest in and work with are the ones that have created notable works during the PC gaming era of the early 2000s and are now ready to resurrect their storylines, characters, and graphics for the mobile age," Getaneh shares. "These companies run a tight operation with little bureaucracy, so games tend to get developed quickly."
With rapid tech advancements and broadband penetration in the region, it's an exciting time for the mobile gaming industry in Asia. The industry revenue is projected to reach US$97.99 billion in 2023 and US$127.50 billion by 2027, while the number of users rises to 1,366 million by 2027. This growth is expected to continue as the number of mobile broadband users and 5G users in the region continue to increase and the GDP per capita rises. The future looks bright for the industry, and it will be interesting to see how it develops in the coming years.
