Mumbai: The Asia and MENA gaming ecosystems are entering a renewed phase of expansion, with Niko Partners’ Half-Year 2025 update projecting the regional video games market to reach $88.97 billion in 2025, up 2.7% year-over-year. The total gamer population is forecast to hit 1.70 billion, also a 2.7% YoY increase, signaling synchronized growth in both demand and monetization across one of the world’s largest gaming regions.
The revised forecast—more optimistic than earlier-year models—reflects improved consumer sentiment, strong multi-platform performance, and increasingly supportive regulation. With these tailwinds, Niko Partners now expects the region’s video game industry to become a $100 billion opportunity by 2029, reinforcing Asia & MENA’s position as the global growth engine for gaming.
Stronger Platform Dynamics Power the Upward Revision
Across mobile, PC, and console, the industry is benefitting from momentum that has exceeded expectations in the second half of the financial year.
Mobile and PC, long the backbone of Asia’s gaming economies, continue to outperform through:
- Sustained engagement with evergreen IPs
- The rise of cross-platform AAA-level titles
- Increasing adoption of premium content and live service models
These trends are supported by a rise in paying gamers across the region, strengthening monetization without sacrificing scale. The expansion of out-of-app monetization channels, enabled by more flexible regulatory environments in several markets, has further unlocked spending potential.
Additionally, the industry is seeing a sharper focus on female gamers and niche genre communities, widening the total addressable market and driving engagement diversification.
Console Emerges as a Surprising Growth Catalyst
Though console gaming will account for just 6.3% of 2025 regional revenue, it is forecast to be the fastest-growing segment through 2029. A significant catalyst is the Nintendo Switch 2, whose early uptake in Japan, South Korea, and parts of Southeast Asia has exceeded expectations.
Meanwhile, anticipation for Grand Theft Auto VI, alongside upcoming next-generation hardware from Sony and Microsoft, is reshaping spending patterns. Increased appetite for AAA titles, subscriptions, and F2P console ecosystems points to a maturing premium market across Asia & MENA—long dominated by mobile-first behaviour.
India, MENA, and Southeast Asia: The New Growth Triad
Niko Partners identifies India, MENA-3, and the SEA-6 markets as the fastest-growing regions in both revenue and gamers through 2029. These markets also stand out for their above-average ARPU growth, signalling long-term commercial viability.
India: From Scale-Driven to Revenue-Accelerating
India remains the standout performer:
- Expected to surpass 500 million gamers in 2025
- On track to reach 700 million gamers by 2029
- Projected to exceed $1.5 billion in player spending by 2028
The market’s trajectory has been reshaped by the introduction of the PROG Act (Aug 2025), which bans Real Money Gaming while expanding government support for video games and esports. The move is widely viewed as a structural pivot to nurture a healthier domestic industry and attract long-term investment.
Southeast Asia: Opportunity With Headwinds
Valued at $5.5 billion in 2025, Southeast Asia remains a high-opportunity but uneven landscape.
- Malaysia, Vietnam, and Thailand lead revenue growth.
- Indonesia faces slower expansion amid economic strain, prompting downward forecast revisions.
- Vietnam, buoyed by strong macroeconomic indicators and targeted government support, has seen an upgrade in projected revenue.
Regulatory clarity and consumer confidence remain central to unlocking SEA’s next phase of growth.
MENA-3: Small Base, Large Upside
Saudi Arabia, UAE, and Egypt continue to expand rapidly, supported by:
- Youth-driven consumption
- High government spending on gaming infrastructure
- Rising female gamer participation
MENA is expected to deliver one of the strongest revenue CAGRs through 2029.
Mature Markets Reinforce Their Dominance, With Upside Surprises
China, Japan, and South Korea—the region’s mature markets—are projected to generate $88.8 billion in player spending by 2029, accounting for 89.1% of total tracked revenue.
Despite saturation concerns, all three markets displayed upside trends in 2025:
- China saw improved performance across both new and legacy titles, especially within mobile and PC ecosystems.
- Japan benefitted from the exceptionally strong launch of the Switch 2.
- South Korea recorded stronger-than-expected revenue growth, driven by mobile role-playing games, esports, and premium PC titles.
These markets form the revenue core of Asia & MENA, anchoring the region’s global leadership in gaming.
A More Confident Outlook for 2029—and Beyond
The confluence of rising consumer spending, expanding audiences, stronger platform ecosystems, and supportive regulatory measures has set the Asia & MENA gaming market on a firmer long-term path. Niko Partners’ updated model projects steady growth through 2029, with emerging markets delivering scale and mature markets providing revenue stability.
As gaming becomes more deeply integrated with entertainment, culture, and commerce, the region’s influence on global gaming trends will continue to expand—making Asia & MENA the most strategically important geography for publishers, investors, and platform owners through the rest of the decade.
