What are the opportunities of the Indonesian Gaming Industry?
Source: Lapaas
Even before the developing era, video games have been around for decades, providing entertainment for all people without viewing their demographic factors. In the present, these computer games have become more lifelike as ever. When technology continues to improve, so do video games.
The increase in video game development brings opportunities to other products as well. For example, with the increasing amount and popularity of video games, people has started to make themselves comfortable with the appliances that support them when playing. For example, keyboard, mouse, external monitor, speakers, headphones, and more.
Compared to the movie and music industry combined, the video game sector is larger than both industries, and is still growing in the near future. Though it doesn’t get the same attention as the movie and music industry, there are over two billion gamers across the world, which is 26% of the world’s population.
In 2020, the gaming industry gathered USD 155 billion in revenue. Analysts predict that by 2025, the industry will generate more than USD 260 billion in revenue. As such, tech companies are looking to get involved in this revenue stream. Technological giants such as Google, Meta, and Apple, have all made plans to enter the video game industry.
Overview of the Indonesian Gaming Industry
The gaming market in Indonesia holds the 16th place in the world and is the largest in Southeast Asia. At the end of 2021, the sales for this industry accounted for USD 1.92 billion. Data states that the average number of hours/weeks spent playing video games as of January 2021 in Indonesia accounted for 8.54 hours, in which the global average is 8.45 hours.
Aside from the high spending hours for the industry, an estimated 89.2% of Indonesians are anticipated to own a smartphone by 2025. In 2019, smartphone users in rural areas rose to 55% from 47.3% in 2015. In addition, Indonesia had a total of 202.6 million internet users, and rose 27 million in between 2020 and 2021.
International Brands Who Have Penetrated the Indonesian Gaming Market
- Tencent
Tencent is an entertainment giant that has remained as the world’s top game publisher by revenue, leading the industry with USD 1.4 billion. One of its games, PUBG Mobile, has successfully penetrated the Indonesian market as a lot of Indonesians were seen to be playing this game religiously. In 2020, they were able to garner a revenue of CNY 156.1 billion.
- Moonton
Moonton produced the game Mobile Legends: Bang Bang, a multiplayer online battle game arena which is particularly popular in Southeast Asia. In 2021, in-app purchases revenue within the game peaked at a cumulative of USD 236.1 million. Now, the company is worth USD 4 billion.
- Garena
Garena is one of the developers for the infamous game, Free Fire. In the fourth quarter of 2021, its net profit reached USD 859 million and was up 116% from 2020. In 2021, the company is worth USD 9.95 billion.
Future Prospects of the Indonesian Gaming Industry
Given that Southeast Asia’s gaming sector is mostly driven by Indonesia, the prospects for the gaming industry are predicted to be positive in the future. In 2021, Southeast Asia has 274.5 million gamers, with Indonesia responsible for 43% of the total. Moreover, Indonesian gamers conduct in-game transactions one to three times a month, which presents an ideal opportunity for e-sports to collaborate with financial institutions for greater returns.
Not only that, but the Indonesian government has full support towards this industry. They have reassured that the gaming industry will have a beneficial impact on the country’s economy and athlete’s performance. Events and competitions have also been supported by the government, and it has been decided that the ministry will continue to educate the public and create awareness to the gaming industry.
Enter the Indonesian Fast Fashion Industry with BRIGHT Indonesia
With the constant shift of consumer behavior and demands, it would need a lot of in-depth research about the Indonesian gaming industry. Therefore, to enter the Indonesian market, you would need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Assist you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email info@brightindonesia.net.
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