Niko Partners has released an updated market outlook for the gaming industry across Asia and the Middle East and North Africa (MENA), reflecting performance through the first half of 2025. The report, which tracks consumer spending on video games while excluding real-money gaming and gambling, estimates that the combined market will reach $88.97 billion by the end of 2025, representing year-over-year growth of 2.7%.
Player numbers across the two regions are also expected to grow at the same pace, reaching approximately 1.7 billion users in 2025. Based on revised forecasts, Niko Partners now expects the combined Asia and MENA gaming markets to surpass $100 billion by 2029, supported by regulatory adjustments and stronger-than-anticipated performance across platforms.
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Regulatory Shifts Drive Revised Forecasts
The updated outlook reflects improvements in regulatory environments across several key markets. In China, a higher volume of game approvals has increased market stability, while India’s ban on real-money gaming is expected to redirect consumer spending toward traditional video games. According to Niko Partners, these changes contributed to upward revisions for both revenue and long-term growth expectations.
India, MENA, and Southeast Asia are projected to be the fastest-growing regions through 2029 in terms of revenue and player expansion. These markets, along with China, are also expected to post the strongest gains in average revenue per user, suggesting improving monetization alongside audience growth.
China Remains the Largest Market by a Wide Margin
China continues to anchor the regional outlook. Niko Partners estimates that China’s gaming market will reach $51.2 billion in 2025, up 4.1% year over year. By 2029, the market is projected to grow to $57.1 billion, reflecting a five-year compound annual growth rate of 3%, an increase from earlier projections.
Licensing activity has been a major factor in this outlook. During the first ten months of 2025, Chinese regulators issued 1,441 game licenses, a 24% increase compared to the same period last year. This higher approval rate has helped publishers plan releases with greater certainty.
India and Southeast Asia Show Long-Term Momentum
India’s gaming market is expected to grow from $1.1 billion in 2025 to $1.67 billion by 2029, representing a five-year CAGR of nearly 13%. The country’s player base is projected to exceed 500 million this year and reach roughly 700 million by the end of the forecast period. Niko Partners expects the RMG ban to benefit traditional gaming categories by shifting user spending patterns.
In Southeast Asia, Malaysia, Thailand, and Vietnam are identified as leading growth markets, though forecasts for Thailand and Indonesia were adjusted downward. Overall, Southeast Asia’s gaming revenue is expected to reach $5.5 billion in 2025, increasing to $6.4 billion by 2029.
Core Markets Still Dominate Regional Revenue
Despite growth in emerging markets, China, Japan, and South Korea remain the foundation of the Asia and MENA gaming business. By 2029, these three markets are expected to generate $88.8 billion in combined revenue, accounting for more than 89% of the total regional market.
Japan and South Korea together are projected to generate $29.1 billion in gaming revenue in 2025, a slight year-over-year decline. By 2029, their combined market size is expected to reach $31.7 billion, growing at a modest CAGR of 1.7%.
Console Gaming Poised for Faster Growth
Console gaming currently represents a small share of the total market, accounting for 6.3% of revenue in 2025. However, Niko Partners expects consoles to be the fastest-growing segment in Asia and MENA through 2029. Factors supporting this trend include rising console adoption, higher consumer spending, and upcoming hardware and software releases such as Nintendo Switch 2 and Grand Theft Auto VI.
MENA Markets Grow Despite Mobile Headwinds
The MENA-3 markets of Egypt, Saudi Arabia, and the United Arab Emirates are estimated to generate $2.2 billion in gaming revenue in 2025, reflecting growth of 8.5% year over year. By 2029, their combined market size is expected to reach $2.8 billion, growing at a CAGR of 6.4%.
Niko Partners slightly lowered its outlook for the region due to weaker-than-expected mobile gaming revenue in Saudi Arabia and the UAE. Even so, the long-term trajectory remains positive as player numbers and infrastructure continue to improve.
Source: Niko Partners
Frequently Asked Questions (FAQs)
How large will the Asia and MENA gaming markets be in 2025?
Niko Partners estimates the combined gaming markets will reach $88.97 billion in 2025.
What regions are growing the fastest?
India, MENA, and Southeast Asia are projected to see the fastest growth in both revenue and player numbers through 2029.
Why did Niko Partners revise its forecasts upward?
Improved regulatory conditions, increased game licensing in China, and stronger-than-expected performance across platforms contributed to the revised outlook.
Which gaming platform is expected to grow the most?
Console gaming is expected to be the fastest-growing segment in Asia and MENA through 2029, despite its smaller current market share.
Does the report include web3 or gambling revenue?
No, the analysis excludes real-money gaming, gambling, and web3-related revenue, focusing solely on traditional video game consumer spending.
