Southeast Asia ranked as the second-largest market for mobile game downloads in Q1 2025, with 1.93 billion new installs, a 3% increase from the previous quarter.

The region placed seventh globally in in-app purchase (IAP) revenue, generating US$625 million.

Rising smartphone adoption and improved digital payment systems are key factors driving future monetization growth.

Indonesia led the region with 870 million downloads, a 9% increase from the previous quarter. The Philippines and Vietnam followed with 366 million and 329 million downloads, respectively.

Thailand reported $162 million in IAP earnings, supported by a strong digital payment infrastructure.

Casual genres like Arcade and Simulation made up many downloads, while Strategy, Shooters, and RPGs dominated IAP revenue.

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🔗 Source: Sensor Tower

🧠 Food for thought

1️⃣ Southeast Asia’s evolution from gaming importer to global exporter

Southeast Asia has transformed from merely consuming foreign games to becoming a global game development powerhouse over the past decade.

This shift began around 2017 when Sea (formerly Garena) became the first Southeast Asian tech company to list on the NYSE, marking the region’s entry into the global gaming business landscape 1.

By 2018, Vietnamese developers were already contributing $200 million of the country’s $365 million in mobile game revenue, showing early signs of local production strength 2.

The current leadership position of SEA-based publishers in global download rankings (generating over 5.8 billion installs in 2024) represents the culmination of a long-term regional development strategy rather than a sudden emergence.

This transformation has created thousands of jobs across the region, with development hubs emerging in Singapore, Malaysia, and Vietnam that now export games globally rather than primarily serving local markets 3.

The presence of three Vietnamese publishers in the global top 15 by downloads reflects how Southeast Asia has leveraged its large, engaged player base to build development expertise that resonates internationally.

2️⃣ Dramatic growth trajectory outpacing global market averages

Southeast Asia’s mobile gaming sector has consistently maintained exceptional growth rates compared to global averages, explaining its current market position.

Historical data shows the region achieved a 45.3% CAGR from 2015 to 2019, dramatically outpacing the global mobile gaming average of 14.6% during the same period 4.

This growth momentum has continued, with spending increasing from approximately $5.57 billion in 2021 to projected revenues of $6.39 billion by 2025 56.

Indonesia demonstrates this trajectory clearly, with gaming revenues skyrocketing from IDR 1.812 trillion in 2011 to IDR 11.395 trillion by 2016, representing a 44.4% annual growth rate 7.

The demographic foundation for this growth remains strong with the region’s young population (median age around 30) and increasing digital engagement, with 86% of internet users now playing mobile games 38.

The current regional download figures (1.93 billion in Q1 2025) and revenue ranking (seventh globally) represent the continuation of this exceptional growth pattern rather than a recent development.

3️⃣ Market-specific monetization patterns explain current revenue landscape

The distinct revenue patterns across Southeast Asian countries reflect deeply embedded consumer behaviors and infrastructure development that have evolved over years.

Thailand’s current leadership in revenue generation ($162 million in Q1 2025) aligns with historical spending patterns, where Thai gamers have consistently shown higher willingness to pay compared to neighbors like Indonesia, where players averaged just $9 annually versus Singapore’s $189 5.

The disparity between the region’s download volume (second globally) and revenue ranking (seventh) stems from persistent monetization challenges, including limited payment options in some markets. For example, Vietnam’s 2018 phone card payment ban caused a 60-70% market turnover drop 9.

Free-to-play dominates the region, accounting for over 86% of mobile game revenue, shaping how successful games must approach monetization 5.

The current success of strategy games, shooters, and RPGs in generating revenue reflects years of market evolution toward social and competitive gaming experiences that encourage sustained engagement and spending.

This context explains why publishers in the region focus heavily on engagement metrics and community building as pathways to monetization rather than pursuing direct payment models that work in other global markets.

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