Mobile games revenue is expected to surpass PC games revenue in Southeast Asia in 2018 and reach $1.8 billion by 2020, according to market researcher Niko Partners.

The firm surveyed 1,500 gamers online and interviewed executives in the region, as well as providing market data and insights.

The report shows that revenue from mobile games will increase by a compound annual growth rate of 25%. This means it could grow from $587 million in 2015 to $1.8 billion in 2020. Revenue from both PC and mobile games combined will rise to more than $3 billion.

Lower barrier of entry

Niko Partners also identified Indonesia, Thailand, and Vietnam as the growing markets to keep an eye on. Thailand in particular has a more "hardcore" base of gamers, who spend more than 21 hours a week playing games.

"The primary driver of demand for mobile games is the appetite for a wide selection of lower cost digital entertainment," said Lisa Cosmas Hanson, Managing Partner of Niko Partners.

"Gamers in many of the Southeast Asian countries that we track are restricted by lower disposable income, and that makes local parity pricing important for foreign game developers to acquire greater numbers of users who can afford to play their games."