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.

🔗 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