As 2024 reach its final quarter, the digital economy in Southeast Asia (SEA) continues to surge, fueled by robust growth across sectors such as e-commerce, food and transport, travel, and online media. Among these, SEA stands out as a rising star in the global digital economy, demonstrating resilience and adaptability in the face of inflationary pressures and evolving market dynamics.
In 2024, SEA’s digital economy achieved remarkable progress, recording double-digit year-on-year (YoY) growth in Gross Merchandise Value (GMV) and revenue. According to the recently released e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company, GMV climbed to an impressive USD 263 billion, with 15% increase from last year, while revenue soared 14% to USD 89 billion.
This consistent growth reflects the region’s ability to navigate global economic challenges while embracing new opportunities, making SEA an attractive destination for investment across various industries.
Gaming Sectors in SEA’s Digital Boom
With the digital economy booming across various sectors in SEA, online media—including gaming, video, music, and ads—has shown a positive trajectory over the past three years. This sector continues to maintain overall profitability, driven by increasing investment in ad monetization efforts by digital players.
Source: e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company
Among SEA’s thriving online media sectors, gaming stands tall as one of the fastest-growing industries, with the sector contributing 16% to the overall year-on-year growth across online media sectors in 2024. This notable performance underscores gaming’s central role in the digital economy’s expansion.
A burgeoning gamer base has not only elevated e-sports in SEA to new heights but has also spurred a demand for localized content. Game developers in SEA are meeting this demand by incorporating regional languages and cultural nuances into their creations, enriching the gaming experience for a diverse audience.
Mobile Gaming as Region’s Powerhouse
Game developers in SEA are capturing a growing share of global mobile game downloads and revenue. This success is not limited to major studios, as indie games also play a pivotal role in driving growth across the region.
According to Southeast Asian Mobile Game Market Insights 2024 by Sensor Tower, the mobile game downloads in the Southeast Asian market grew by 3.4% period-on-period to 4.2 billion in the first half of 2024. Indonesia stood out as the driving force behind this growth, contributing over 41% of the region’s total mobile game downloads.
From January to August 2024, mobile game downloads in Indonesia surged by 10%, making it the fastest-growing market in Southeast Asia and cementing its position as a regional leader in this metric.
Source: Southeast Asian Mobile Game Market Insights 2024
A Window Opportunity for Investing in Indonesia Gaming Market
Indonesia’s position as a hub for mobile gaming extends beyond its impressive download numbers. As the 16th largest market globally and a leader in SEA, the country’s vibrant creative ecosystem, fueled by a thriving community of gaming content creators, makes it a key player in delivering localized and culturally rich gaming experiences.
Source: e‑Conomy SEA 2024 Report
The rapid growth of digital creators is another reason Indonesia stands out as an attractive market for game developers. According to the e‑Conomy SEA 2024 report, gaming content creators dominate Indonesia’s digital landscape, making gaming the most popular category among creators, who are leading the charge compared to other categories.
With the rapidly evolving market, Indonesia reflects a perfect confluence of factors—a young, tech-savvy population, widespread smartphone penetration, and increasing access to affordable internet. These conditions create a fertile ground for innovation and experimentation in gaming
Key Strategies for Game Expansion: Localization and Cultural Integration
For businesses aiming to thrive in this dynamic market, localization and cultural infusion are essential. This strategies are include:
Cultural Resonance
Developing games that reflect local traditions, languages, and values to build a deeper connection with the audience. Adding culturally relevant characters, stories, and settings can significantly enhance engagement.
Language Accessibility
Offering multilingual options ensures broader reach, especially in a linguistically diverse region like SEA.
Collaborating with Local Creators
Partnering with gaming influencers and creators helps tap into established communities, fostering organic growth and trust among local audiences.
Regional Adaptations
Designing games that cater to varying internet speeds and device specifications, ensuring inclusivity across diverse socio-economic groups.
Tap Into SEA Market with Agate
As the leading game development company in Indonesia and Southeast Asia, Agate is uniquely positioned to capitalize on these opportunities. By prioritizing localization and cultural integration, Agate has successfully built games that resonate with both SEA and Indonesian audiences.
Agate’s approach also involves tailoring gaming experiences to the unique needs of the region, from technical optimization for diverse platforms to culturally enriched narratives.
Contact our team at enterprise@agate.id and let’s make the next big hit in Southeast Asia.
