Updated Mar 17, 2026 by Niko Partners
Report · January 1, 2019
Published by Niko Partners
Mobile esports is positioned to become the primary catalyst for growth in the digital games industry over the next five years, leveraging a global player base of 2.53 billion that already surpasses the combined reach of PC and console gaming. In 2018, mobile esports titles generated $15.32 billion in revenue, representing over a quarter of the total mobile market. This expansion is driven by high smartphone penetration and a fundamental shift from high-profile spectator events toward a pervasive ecosystem of regional and online-only competitions. By lowering barriers to entry, the sector has successfully attracted a more diverse and gender-balanced audience than traditional competitive gaming platforms. The industry is currently transitioning from a publisher-funded marketing tool into a scalable mass-market powerhouse. While professional PC esports historically dominated revenue, mobile esports is rapidly closing the gap, fueled by sophisticated monetization strategies including media rights, sponsorships, and microtransaction-based models like season passes. Asia serves as the epicenter of this evolution, with China and Southeast Asia hosting the most concentrated markets for competitive mobile titles. Significant investments from traditional sports franchises and the expansion of media rights into mainstream cable television further signal the professionalization and maturation of the sector. Technological advancements in 5G and cloud gaming are disrupting the historical dominance of PC titles by delivering high-quality competitive experiences on accessible hardware. This technological shift, combined with strong government support in Asian markets, has led to explosive growth, exemplified by a 44.5% revenue increase in top Belt and Road markets during the first half of 2019. As industry leaders establish franchised leagues and record-breaking prize pools, the mobile esports model is proving more sustainable and participatory than its predecessors. Ultimately, the sector’s massive reach and superior monetization capabilities ensure its trajectory to overtake PC esports as the dominant global competitive gaming format.
Overview Esports, and the increase in mobile device usage globally, will be the primary drivers for growth in the digital games industry over the next 5 years. A rise in mobile device usage will make gaming more accessible to all, while the mechanics of mobile games revenue models will make it easier for mobile gamers to participate in esports. Mobile gaming revenue already surpasses PC and console gaming revenue, and the development of mobile gaming markets in Greater Southeast Asia and South America (and the continued growth of these markets in North America, Europe, South Korea, Japan, and China) will further tip this balance. Mobile esports is poised to become a cornerstone of the global digital games industry over the next 5 years.
Exhibit: Global mobile games revenue by region, 2017-2019 Region Mobile games Mobile games Mobile games Mobile games revenue 2019 H1 revenue 2018 H1 revenue 2018 revenue 2017 USD million USD million USD million USD million Global 33,453 28,650 60,786 51,134 Asia (excluding China) 11,321 10,134 20,901 18,643 North America 8,547 6,999 14,850 12,487 China 8,318 7,032 15,627 12,127 Europe 3,474 3,088 6,391 5,307 Oceania 515 489 1,012 916 Latin America 442 293 665 528 Middle East 341 268 566 490 South America 299 196 446 346 Central America 139 95 214 178 Africa 57 56 114 112 Source: Sensor Tower, Niko Partners 2019 In 2019, the most prominent and visible esports platform is the PC, thanks to streaming platforms and live tournaments with lots of media coverage. But esports on the mobile platform is booming. Mobile phones are ubiquitous, inexpensive, and usage is rising rapidly, and the economies of mobile apps are more directly monetizable for esports than PC games. Esports is a truly international sport, where borders do not matter, gamers around the world connect as impassioned players, and competition is fun. We at Niko Partners have watched esports boom with the emergence of MOBA and battle royale games, and now the mechanics of those games are being developed into a widening scope of genres and platforms. Mobile esports is pioneering new ways of attracting and engaging gaming esports audiences.
fun. We at Niko Partners have watched esports boom with the emergence of MOBA and battle royale games, and now the mechanics of those games are being developed into a widening scope of genres and platforms. Mobile esports is pioneering new ways of attracting and engaging gaming esports audiences. This report describes the development of a mobile esports ecosystem and plots its trajectory and influence on global gaming markets.
Executive Summary This report explores the evolution of mobile esports, compared to PC esports, globally, with a focus on Asian markets because Asia is leading the world in esports usage and operations. We find that Asia is the barometer for an impending global boom in mobile esports expected to take place over the next 5 years. The growth of mobile esports, driven by cultural, technological, and infrastructural incubators, is positioned to dramatically reorient the esports industry. Mobile esports will precipitate a shift from a limited number of high-profile spectatorfocused esports productions towards a much larger number of consumer participatory tournaments carried out regionally, locally, and online-only. While PC esports also has participatory tournaments online and in icafes, the economics and technology of mobile esports will enable more pervasive expansion. ● This report predicts that mobile esports will become the fastest sector of growth in the esports industry. A mobile esports boom is poised to propel mobile esports from a niche industry to the mass market. ● As of 2018, global mobile esports game revenue is $15.32 billion, 25.2% of total mobile game revenue. In the first half of 2019, the ratio increased to 26.2%. ● There are already more gamers on mobile than PC & console combined. Based on Niko’s estimation, there are around 2.53 billion mobile gamers in the world in 2019, compared to the estimated 1 billion PC gamers and 500 million console gamers.
n the first half of 2019, the ratio increased to 26.2%. ● There are already more gamers on mobile than PC & console combined. Based on Niko’s estimation, there are around 2.53 billion mobile gamers in the world in 2019, compared to the estimated 1 billion PC gamers and 500 million console gamers. ● In China alone, an estimated 74.5% of mobile internet users are mobile gamers, though the global ratio is not as high. A rising smartphone penetration rate, with mobile games as one of the most important uses of smartphones, has begun to shape the esports industry.
Exhibit: Global smartphone penetration rate forecast to be 61% by 2025 internet users 2018 3.6bn 47% PENETRATION RATE 61% (%ofpopulation) CAGR 2018-25 5.0bn 4.8% 2025 Source: Global System for Mobile Communications Association, 2019 ● As mobile gaming overtakes PC and console markets, mobile esports tournaments will leverage app integration and mobile ecosystems to cater to consumers as participants in addition to being spectators. This is a sea-change moment in the history of esports. Mobile esports tournaments will focus on mass market participation and engagement, creating a larger audience for esports and generating new opportunities to monetize around increased participation. ● Mobile games have lower barriers to entry and higher install rates in comparison to PC and console games. This allows for better economics and higher dollar-to-player value in producing tournaments.
Mobile esports has emerged as a primary driver of player engagement and revenue across Asia, signaling a shift from traditional PC and console dominance to a mobile-first competitive landscape. The central thesis posits that Asia is the global epicenter of this evolution, fueled by a massive population of 1.5 billion gamers and a robust infrastructure of internet cafes, local streaming platforms, and increasing 5G penetration. By lowering hardware barriers to entry, mobile technology has transformed casual players into "player-fans" who both compete in and spectate high-stakes tournaments. Key data points highlight the scale of this growth, with global esports prize pools increasing 40% between 2017 and 2019 to exceed $228 million. In 2019 alone, mobile esports generated $19.5 billion in global revenue, with Asia accounting for 68% of that total. China remains the largest single market, boasting 350 million esports fans, while Southeast Asia saw a 244% increase in tournament prize values between 2018 and 2019. The COVID-19 pandemic further accelerated these trends, with gamers in Asia spending up to 75% more time playing and viewership in China doubling during lockdowns. The scope of this analysis covers major Asian markets including China, South Korea, Japan, India, and Southeast Asia, focusing on the period between 2017 and 2020. It examines industry segments ranging from hardware manufacturing and 5G infrastructure to specific game genres like MOBAs and Battle Royales. Methodology relies on primary data from Niko Partners, including consumer panels of over four million users, executive interviews, and market modeling to provide a comprehensive outlook on the region's competitive gaming trajectory.
Asia has established itself as the epicenter of the global gaming industry, driven by a mobile-first population exceeding 1.5 billion players. The region’s market is characterized by the dominance of free-to-play models, which account for nearly 99% of mobile revenue and all top-grossing titles. While China and Japan lead in total revenue, Japan maintains the highest value per user with an average revenue per download of $12.84. Growth is increasingly fueled by the female demographic, which expanded to 500 million players by 2019 and contributes nearly 40% of total mobile gaming revenue. This shift necessitates more inclusive storylines and diverse development teams to capture a demographic that is currently outgrowing its male counterpart. The competitive landscape is defined by the rapid ascent of mobile esports, with Asia generating 68% of the sector's global revenue. Southeast Asia, in particular, has seen a 244% increase in tournament prize pools, signaling a transition from casual play toward complex, competitive genres like MOBAs and Battle Royales. Despite high interest, a significant gap remains between esports viewership and active participation, representing a massive untapped opportunity for developers. Success in these markets requires sophisticated monetization strategies, such as hybrid models combining gacha mechanics, battle passes, and rewarded video ads to accommodate varying income levels across the territory. Navigating the Asian market demands deep localization that extends beyond language to include cultural customs, religious sensitivities, and technical optimization for diverse hardware. While Japan and South Korea remain dominated by local developers and legacy RPG franchises, India and Southeast Asia offer high-growth potential for international titles that provide "lite" versions for accessible play. To achieve long-term engagement, developers must leverage local influencers and community-driven gameplay, ensuring that titles resonate with the specific pop culture trends and infrastructure capabilities of each unique sub-region.
Asia represents the world’s most significant mobile gaming hub, housing over half of the global player base and generating the majority of the industry's mobile revenue. The primary objective of this analysis is to examine the distinct player preferences, cultural influences, and market regulations across five key regions: China, Japan, South Korea, India, and Southeast Asia. By evaluating top-grossing titles and genre shifts through the first half of 2020, the findings illustrate a broader regional transition from casual play toward complex, competitive, and socially-driven experiences. China remains the largest market, characterized by the successful migration of PC intellectual properties to mobile and a regulatory environment that necessitates domestic partnerships. In contrast, Japan’s market is defined by a deep-rooted console history and the pervasive influence of anime and manga aesthetics, with RPGs accounting for nearly half of its mobile revenue. South Korea leverages its robust 5G infrastructure and "PC bang" culture to sustain a market dominated by high-fidelity MMORPGs. Meanwhile, India and Southeast Asia emerge as high-growth regions where young populations and increasing smartphone accessibility are fueling a massive surge in mobile esports and battle royale titles. The data reveals that localization involves more than translation; it requires integrating local folklore, respecting religious customs, and optimizing for hardware constraints. For instance, "lite" versions of games are essential for market penetration in India, while community-centric features are vital for success in Southeast Asia. Across all regions, the rise of mobile esports is a dominant trend, with competitive titles increasingly displacing traditional genres in the top-grossing charts. The methodology utilizes data from Niko Partners, incorporating market models, five-year forecasts, and qualitative surveys from a panel of millions of consumers across Asia. The analysis covers the period from 2016 through June 2020, drawing on data from retailers, app markets, and interviews with industry executives to provide a comprehensive view of the mobile landscape.
This analysis explores the trajectory of the global games, esports, and mobile markets for 2021, forecasting a year of sustained engagement despite the easing of pandemic-related lockdowns. The primary thesis suggests that while the explosive growth of 2020 will normalize, gaming habits have become deeply ingrained, positioning the global market to reach 2.8 billion players and $189.3 billion in revenue. Growth is expected to be particularly robust in emerging markets such as Southeast Asia and the Middle East. Key findings highlight a significant shift toward platform agnosticism and the "metaverse." Cloud gaming is projected to surpass $1 billion in annual revenue for the first time, driven by high-fidelity experiences like Cyberpunk 2077 that bypass expensive hardware requirements. Simultaneously, games are evolving into social platforms for non-gaming events, exemplified by virtual concerts in Fortnite and Roblox. In the hardware sector, supply chain disruptions will continue to limit next-generation console availability, while AAA software delays are expected as the long-term impacts of remote development manifest. The mobile segment faces a pivotal transition due to Apple’s removal of the Identifier for Advertisers (IDFA), which is expected to disrupt traditional user acquisition and push publishers toward IP-based games and creative marketing. Despite these hurdles, 5G penetration is set to triple, with 16% of active smartphones becoming 5G-ready by year-end. Additionally, Chinese developers are increasingly exporting high-budget, immersive mobile experiences like Genshin Impact to Western markets. In the esports and streaming sectors, mobile titles are beginning to outperform traditional PC giants in viewership. Organizations are diversifying into lifestyle brands and content-creator collectives to mitigate risk. Furthermore, the industry is placing a heightened focus on social responsibility, with major stakeholders collaborating to reduce toxicity and improve diversity and inclusion in response to growing consumer demand for representative content.