The esports and gaming industry has experienced rapid growth globally in recent years. Professional video game competitions or esports, are now watched by hundreds of millions of viewers worldwide, with global esports industry revenue reaching approximately USD 2.4 billion in 2024 (Benghozi & Simon, 2025). Although this figure is still relatively small, a Boston Consulting Group report shows that the gaming industry as a whole is much larger, with global revenue reaching approximately USD 221 billion in 2024. These findings confirm that gaming has become one of the main pillars of the global digital economy. The market value is even projected to increase to USD 266 billion by 2028, strengthening the gaming industry's position as an increasingly influential sector in the overall development of the entertainment and media industries.
The development of the gaming and esports industries is in line with the strengthening role of the creative economy in the global economy. The creative economy is no longer seen as a complementary sector but has grown into one of the sectors that is increasingly taken into account in driving economic activity in various countries. Along with this growth, governments in various countries have begun to pay more serious attention to esports and gaming industry, given that this industry is still relatively young and requires policy support in order to develop sustainably. This support includes regulatory arrangements, recognition of esports-related professions, provision of supporting facilities, and integration of talent development programs into education, reflecting important first steps in building a more mature ecosystem. These efforts demonstrate an understanding that esports has real economic potential and can develop to a level equivalent to traditional sports if they continue to receive consistent support from the government (Schudey et al., 2023).
The emergence of this industry was further accelerated by the COVID-19 pandemic, which significantly increased global reliance on digital entertainment. While many sectors contracted during this period, the gaming industry experienced a substantial surge. This shift is further illustrated by Read (2022), who noted that the gaming market grew by around 26% between 2019–2021 as millions of people turned to digital gaming platforms for entertainment and virtual social interaction. As a result, the size of the gaming market expanded dramatically, and the share of global entertainment spending on digital games increased from 6.1% in 2017 to a projected 10.9% in 2026.
Another crucial dimension of this industry’s growth can be seen in the evolution of its global audience of esport. By 2025, the total global esports audience is estimated to reach around 640 million people, consisting of 318 million active fans and 322 million casual viewers (Kumar, 2025). This growth is driven by easier digital access, with platforms such as Twitch, YouTube Gaming, and Facebook Gaming allowing esports matches to be watched live from various locations. This inclusive access not only expands the audience reach but also deepens their engagement, giving rise to increasingly intense and sustainable patterns of digital content consumption.
As global audiences continue to expand, understanding how gaming and esports turn this audience growth into sustainable revenue has become increasingly essential. In gaming, companies have moved beyond traditional one-time sales and now rely on continuous income from microtransactions, digital distribution, and service-based models. Majander (2019) highlights that the free-to-play model has been especially influential by enabling broader access and generating consistent in-game purchase revenue. Esports has followed a similar path, with monetization no longer restricted to ticketing or broadcasting rights. Sponsorship and advertising contribute significantly to income, and Schudey et al. (2023) note that approximately 45% of esports sponsorship originates from non-gaming brands. These developments illustrate that both industries depend not only on growing audiences but also on the ability to capitalize on diverse monetization streams.
Following these global developments, Indonesia has become the largest gaming market in Southeast Asia, valued at around USD 2 billion with approximately 148 million active players, ranking fourth in Asia and fifteenth globally (Nasution, 2025). This strong position is driven by the dominance of mobile gaming, supported by affordable smartphones and broad internet access. A survey by The Jakarta Post (2024) shows that 96% of respondents prefer mobile devices and 61% play every day. Industry revenue reached an estimated USD 1.6 billion in 2023 (VOI, 2024), while in-app spending reached USD 370 million, reflecting rising demand for premium content. To support this momentum, the government has strengthened its intervention through initiatives such as the Esports Presidential Cup, the establishment of the Indonesian Esports Executive Board (PBESI) in 2020, which serves as the official governing body for national esports, and the recognition of esports under the National Sports Committee of Indonesia (KONI), which led to its inclusion in PON XX Papua 2021 (VOI, 2023). Policy support has also been enhanced through Presidential Regulation No. 19 of 2024 on the Acceleration of National Game Industry Development, which focuses on talent development, access to funding, infrastructure provision, and the promotion of local game IPs. To strengthen these efforts further, the Game Seed program by the Ministry of Tourism and Creative Economy provides seed funding and business assistance to help local developers compete globally (Nasution, 2025b). Collectively, Indonesia’s large player base, strong mobile adoption, rising consumer spending, and increasingly structured policy landscape form a solid foundation for the continued expansion of the national gaming and esports ecosystem.
At the city level, Jakarta is among the areas where the growth of Indonesia’s gaming and esports ecosystem is increasingly visible, supported by its concentration of industry activities and national events. Events such as Gameshow or BEKRAF Game Prime, which gather around 250 local game developers, show how efforts to strengthen the ecosystem align with Presidential Regulation No. 19 of 2024 (Tiofani & Widyanti, 2024). Jakarta’s expanding ecosystem is also reflected in its competitive performance, including DKI Jakarta’s success in securing the top esports ranking at the 2024 Aceh–North Sumatra PON XXI (Rifki, 2024). Talent development is further supported by initiatives such as the Student Esports Championships organized by the Jakarta Provincial Government, which aim to nurture early interest, build character, and create a clearer pathway for young players (Dinas Pemuda dan Olahraga DKI Jakarta, 2022). The Jakarta Provincial Government is also taking steps to strengthen ecosystem readiness through its regionally owned enterprise PT Jakarta Tourisindo (JXB), which is initiating the Esport Hotel Academy project designed to provide dedicated training, accommodation, and collaboration facilities for the industry. Collectively, these initiatives show that Jakarta’s gaming and esports ecosystem is becoming more structured and better supported, positioning the city to contribute meaningfully to the continued growth of the national industry.
To conclude, the gaming and esports industries are taking on an increasingly important role within the creative economy, supported by consistent market growth, an expanding user base, and ongoing innovation that enhances content creation and economic value. What was once purely entertainment has evolved into a more developed ecosystem with rising contributions each year, driven by technological advancements, broader digital access, and shifting public preferences toward interactive experiences. Viewed as a whole, the trajectory of this industry shows its strong potential to become a major engine of the creative economy, particularly as talent development, infrastructure readiness, access to funding, and supportive governmental policies continue to strengthen. With focused, collaborative efforts across sectors, Indonesia and Jakarta hold a solid opportunity to position themselves as competitive hubs for the gaming and esports ecosystem at both regional and global levels, offering an increasingly promising space for future investment.