Across the Asia, with exception to Japan, the iGaming market continues to experience a steady, healthy growth in the previous year of 2014. With this, experts estimate that the revenue coming from this region can reach up to US$30.39 billion in 2018 at a compound annual growth rate of 18.53%.
This steady growth is said to defy the slowdown that is experienced within the South East Asian markets. This revenue is set to include mobile games within the business strategies and game portfolios. 2013 reached online gaming revenue of US$12.96 billion. This results to the growth of 14.27%, compared with US$11.34 billion in 2012.
Projections were made during the year 2014. It was expected that the number of iGaming users should rise to 335.88 million in 2018, from 240.74 million in 2013. As the number of gamers across the APEJ region steadily grows, what is most encouraging is a corresponding rise in the number of paying online gamers, from 102.81 million in 2013 to nearly 150 million in 2018.
Mobile Gaming, China Dominancy and Free Games
According to International Data Corporation, iGaming in the Asia Pacific region can also be attributed to the wave of consumer smart phones’ access to the mobile Internet. Aside from the rise of mobile gaming, other key factors of Asia’s iGaming growth can be credited to China’s dominancy and the freemium model.
China is predicted to continue as the dominant force in the iGaming market. However, neighboring countries such as Korea and Taiwan are also seen as strong forces. The three nations make up about 95.56% of the iGaming revenue. Emerging markets such as India and Indonesia also showed promising growth within the years.
Emerging markets such as MOBA and eSports are also emerging as strong growth drivers within the continent, especially for Chinese and Korean players. It is noted that online gaming market has completely transitioned from a subscription fee–based business model into a freemium model.
Initially, online games were offered in Asia through the sale of virtual items and subscription fees. However, consideration towards free-to-try games are being looked on, as it will attract more gamers.
Growth of eSports Market and Projections for 2018
The global eSports market, currently worth $748 million, is expected to reach $1.9 billion by 2018, with North America and Europe making up a combined 52 percent while Asia approaches stagnation, according to a new report.
According to the report of eSports Market Brief for year 2015-2016, the total global market is valued at $748 million for 2015, with year-over-year revenue growth largely a result of more brands and advertisers entering the market. Combined, sponsorships and advertising reached up to $579 million this year.
Asia, whose worth is $321 million, is slowly giving way to western investment, leading North America and Europe to account for almost $400 million over half of global revenues. North America and Europe, once combined, makes up 52% of the eSports market. They continue to invest further in the market space, while Asia is said to approach stagnation after enjoying eSports.
It is projected that the market will reach $1.9 billion with the growth of direct revenue sources such as betting sites and amateur tournament platforms. The report goes on to say that investors injected over $150 million of capital into new platforms like eSports betting and fantasy sites. However, such sites earned only $56 million this year.
It seems that players have grown comfortable betting and wagering for virtual gaming content. This causes real-money wagering sites to gain revenue slower than desired. While there is stagnation, eSports on the other hand, has become mainstream; attracting several television and media channels such as TBS and ESPN.
Today, fans no longer have to seek out platforms just to watch tournaments. People can now watch eSports while watching television. Traditional brands and media noticed the rising interest in advertising within the games in order to catch the attention of the male demographic watching television.
Opportunities in Asia iGaming Industry
The Asian iGaming market is a land of opportunity for online gambling enthusiasts and affiliates. Ever since the land-based casino games are losing clients, the iGaming sphere has gained more prominence. While the main countries such as China, Japan, Korea dominates the industry, they do not fully regulate online gambling activities and simply prohibit such in their homelands. However, most of iGaming players come from these nation.
Muslim countries also forbid any kind of gambling activities, due to obvious religious reasons. Due to restrictions, one may find gambling liberty within the havens of Macau, Malta, Philippines and other countries that allows iGaming licensing to firms and affiliates. You’ll also find countries that forbids gambling but tolerates iGaming such as Thailand and Malaysia.
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