Asias Top Mobile MarketsChina, Korea, JapanInsights into:ContentsForeword 31. Introduction to the key markets 52. Dep dive into the key markets 10A. China 11B. Japan 22C. South Korea 32© Copyright 2019 NewzoASIAS TOP MOBILE MARKETS3FOREWORDThe past decade has sen the global ap economy skyrocket since the first iPhone launched in 207. Total ap revenues reached $87.1 bilion in 2018 and wil grow at a double-digit rate to reach $129.2 bilion by 2021, with games as the most lucrative category. APAC, which curently acounts for almost 60% of al ap revenues worldwide, wil lead this growth.China, Japan, and South Korea are the thre largest markets in the APAC region, each presenting unique oportunities for Western mobile developers, along with unique bariers to entry. These markets are mature and have long ben dominated by local players: Tencent in China, Line in Japan, and Kakaoin South Korea. Culturaly, these markets are very diferent than the West, with Asian mobile gamers favoring local IPs, fantasy or anime-style graphic designs, diferent paying behavior, and more.In this report created together with Mintegral, we take an in-depth lok at Asias top mobile markets, including their dynamics, consumer preferences, and growth potential. TAPING INTO THE MOBILE-FIRST REGION$75BnTotal app revenues in APAC in 2021JinjinHuangChina Market Analyst, Newzoo© Copyright 2019 NewzoASIAS TOP MOBILE MARKETS4KEY TAKEAWAYS1$87.1BN IN GLOBAL AP REVENUESGlobal consumer spending on aps reached $87.1 bilion in 2018 and wil grow to $129.2 bilion by 2021. APACS share wil decrease slightly from 58.2% in 2018 to 57.9% in 2021.2APAC SES THE MOST SMARTPHONE USERSIn 2018, the number of smartphone users reached 3.0 billion globaly, of which 53.4% were from the APAC region, or 1.6 bilion. China acounted for half of APACs total smartphone users in 2018.3CHINA IS THE #1 AP MARKETIn 2018, consumer spending on aps in China reached $26.4 bilion, with 73.7% coming from obile games. Driven by its mobile-first culture, China wil remain the worlds largest ap market in 2021. In 2018, almost one third of global ap revenues were from China.4JAPANESE MOBILE PAYERS ARE THE BIGGEST SPENDERSJapanese mobile gamers are known for their purchasing power. In 2018, paying Japanese smartphone gamers spent $371.0 per person on average, nearly 3.5 times more thanAmerican gamers. Thismakes Japan the #1 market by anual spend per smartphone game payer. Role playing is the #1 grosing mobile game genre in Japan.5SOUTH KOREA HAS THE HIGHEST SMARTPHONE PENETRATION IN ASIA The smartphone penetration in South Korea reached 67.6% in 2018, making it the #1 market by smartphone penetration in Asia. Samsung is by the largest mobile device brand in its home country, acounting for 65.5% market share in October 2018.$87.1Bnglobal ap revenues in 2018, +14.0%CAGR to 2021.$26.4BnChinese ap revenues in 2018, of which $19.4Bn camefrom mobile gaes. $371.0anual spend per Japanese smartphone game payer in 2018 vs. $106.4 for Americans.67.6%smartphone penetration in South Korea in 2018, vs. 55.3% in China and Japan.1.6Bnsmartphone users in APAC in 2018, making up 53.4%of the global market. 1.Introduction to the key markets© Copyright 2019 NewzoASIAS TOP MOBILE MARKETSTHE APAC REGION CONTRIBUTED MORE THAN HALF (58.2%) OFGLOBAL MOBILE AP REVENUES IN 2018. 52%APAC IS THE WORLDS #1 MOBILE MARKET2018 MOBILE AP REVENUES | GLOBAL AND REGIONALSHARE OF APAC'S $50.7 BILION AP REVENUESof the total mobile ap revenues in the APAC region in 2018 came from China.Chinese consumer behavior has ben continuously shifting from ofline to online over recent years. With the widespread use of mobile phones, revenues generated from mobile aps have increased on a large scale. In 2018, Chinas total mobile ap revenues acounted for more than half of the total in the APAC region, while Japan had a share of 26.4% and South Korea 7.4%.2018 | Per country52.0%26.4%7.4%14.2%China Japan South Korea Rest of APAC$87.1Bn2018 global ap revenues58.2%APACs shareSource: 2018 Global Mobile Market Report | Q4 Update6© Copyright 2019 NewzoASIAS TOP MOBILE MARKETSIN 2018, NEARLY THRE-QUARTERS OF GLOBAL MOBILE REVENUES WERE FROM GAMES.77%MOBILE GAMES CONTRIBUTE NEARLY 80%2018 MOBILE GAMES REVENUES | GLOBAL AND REGIONALSHARE OF APACS $39.2 BILION MOBILE GAME REVENUES of APACs ap revenues in 2018 were generated by mobile games.Mobile games have ben increasingly prevalent in Asia. This popularity has expanded from major players in the mobile games market, such as China, to emerging markets, like Southeast Asia, where there are profesional esports events centered around mobile games. 49.6%28.2%8.1%14.1%China Japan South Korea Rest of APAC$63.2Bn2018 global mobile games revenues62.0%APACs share7Source: 2018 Global Mobile Market Report | Q4 Update2018 | Per country© Copyright 2019 NewzoASIAS TOP MOBILE MARKETSOVER A QUARTER OF GLOBAL SMARTPHONE USERS IN 2018 CAME FROM CHINA.1.6BnAPAC HAS THE MOST SMARTPHONE USERSNUMBER OF SMARTPHONE USERS IN 2018 | GLOBAL AND REGIONALSHARE OF APACS 1.6 BILLION SMARTPHONE USERSSmartphone users in APAC in 2018.Just under half of these were from China, with only 4.4% from Japan and 2.2% from South Korea. Mobile devices have ben increasingly comon in peoples daily life in recent years in Asia. In fact, 53.4% of the global smartphone users came from the APAC region in 2018.49.0%4.4%2.2%44.4%China Japan South Korea Rest of APAC3.0BnNumber of smartphone users globaly in 201853.4%APACs share8Source: 2018 Global Mobile Market Report | Q4 Update2018 | Per country© Copyright 2019 NewzoASIAS TOP MOBILE MARKETSGLOBALY, NON-GAME AP REVENUES (+16.7% CAGR 2018-2021) WIL GROW SLIGTHLY FASTER THAN MOBILE GAMES REVENUES (+13.0% CAGR 2018-2021) TOWARD 2021. +14%THE AP MARKET WILL GROW STEADILY2021 MOBILE AP REVENUES | GLOBAL AND REGIONALCAGR (2018-2021) of the global mobile ap market.In the next thre years, the mobile ap market wil continue to grow at a healthy rate. However, APACs revenue share wil decrease slightly. Similarly, the revenue share that China, Japan, and South Korea take in the region wil also decrease, leaving more rom for emerging markets to grow. In 2021, the rest of APAC wil take up 18.6% of total mobile ap revenues, or $13.9 bilion.53.0%21.7%6.7%18.6%China Japan South Korea Rest of APAC$129.2Bn2021 global ap revenues57.9%APACs shareSHARE OF APACS $74.7 BILION AP REVENUES2021 | Per country9Source: 2018 Global Mobile Market Report | Q4 Update2.Deep dive into the key markets