SEA consumers dominate Chinese app download. What's driving the installs?

Southeast Asia countries lead globally in the install share of Chinese apps, with Indonesia (22%), the Philippines (21%), Malaysia, Thailand (both 19%), Vietnam, and Singapore (both 18%) ranking among the top markets for Chinese app installs.

According to a report by measurement and analytics company Adjust, together with Sensor Tower, which recently released Chinese Export Apps, Short drama and AI apps lead the Chinese tech export boom. Interestingly, 30% of mobile marketers surveyed by Adjust are eager to advertise on short drama apps, giving an average interest score of 72 out of 100. Around 36% of respondents have already seen short drama app ads and 35% working in the industry would consider developing such apps themselves.

By blending the viral appeal of short-form content with the serialised nature of traditional dramas, Chinese short drama apps have quickly become a global entertainment phenomenon.

These apps, featuring high-drama narratives often centered on romance and fantasy, have captivated international audiences after initial success in China. Over 40 Chinese short drama apps have amassed more than 55 million global downloads and generated US$170 million in in-app purchases. Notably, the US market contributes 60-70% of this revenue, highlighting the immense potential beyond China.

Leading platforms such as ReelShort, DramaBox, and DreameShort are driving the growth of short drama apps. The report also says that the strategic use of TikTok has been crucial in driving global adoption. By leveraging TikTok's viral reach, these apps have attracted millions of viewers by marketing short, engaging clips. Content localisation, with subtitled versions of popular Chinese dramas, has further broadened their appeal.

SEA markets including Indonesia, Vietnam, and the Philippines have shown strong user engagement, fueled by the region’s affinity for mobile-first entertainment platforms alongside rising smartphone penetration.

With Chinese short drama apps on track to become a billion dollar industry, user bases are projected to reach 200-300 million globally. To share in this growth, app developers must continue creating compelling content, leveraging viral marketing, and offering flexible, user-friendly revenue models. Investment in AI-driven personalisation and forming strategic partnerships will also be key to enhancing user engagement and retention across regions, said the report.

Booming AI industry

The artificial intelligence (AI) revolution is in full swing with the booming global AI market is projected to reach US$407 billion by 2027, up 368% from US$86.9 billion in 2022. The AI app sector alone is on a meteoric rise, having generated a revenue of US$1.8 billion in 2023 and is set to hit US$18.8 billion by 2028.

The widespread appeal of AI apps is evident, with approximately 230 million people actively using them as of June 2024. In a recent Adjust survey, mobile marketers rated the quality of AI apps and features at 52 out of 100.

Opinions on advertising in AI apps are mixed, with 38% of marketers showing interest. Approximately 25% of respondents are currently investing or planning to invest in AI apps. Overall. around 80% of app marketers have utilised an AI app or integrated AI features in their apps.

"The rapid rise of Chinese apps worldwide underscores their influence in reshaping digital user experiences through gamification, artificial intelligence, and personalisation," said April Tayson, regional vice president for INSEAU at Adjust. “Looking at how these apps have deeply integrated into our daily lives, Chinese apps’ momentum shows no signs of slowing down.”

According to the study, SEA countries lead most verticals for Chinese app install share dominating the utility category – Vietnam (36%), Cambodia (33%), and Indonesia (30%).

For entertainment apps, Singapore leads globally in the share of installs (49%). For gaming apps, the Philippines (19%), Indonesia (19%), and Singapore (17%) have a narrow lead globally in install share, just behind South Korea (21%). Malaysia (80%) dominates the social app install share, followed by Indonesia (65%), Vietnam (64%) and the Philippines (54%).

Chinese Shopping and finance apps are also spurring growth in the region. Finance app installs in SEA rose by 88% year-over-year (YoY) in Q3 2024, with sessions up 70% YoY.

Shopping app installs soared by 184% YoY in Q3, although sessions declined by 18%. Overall, Social app installs grew by 27% YoY in Q3, accompanied by a 19% increase in sessions.

This year’s analysis reveals strong user adoption and engagement for finance and social apps across SEA, North America, and EMEA, highlighting the growing opportunities for Chinese developers in these key markets. Mobile-first platforms and increasing smartphone penetration are driving growth in these categories within SEA.

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