Market Analysis and Insights:
The market for Global Esports was estimated to be worth USD 970 million in 2023, and from 2024 to 2032, it is anticipated to grow at a CAGR of 20.62%, with an expected value of USD 8.16 billion in 2032.
The Esports industry is experiencing significant growth driven by various factors. To begin with, the surge in the popularity of video games among millennials and Generation Z has played a crucial role in the market's expansion. These demographic groups, having been raised immersed in gaming culture, show a strong interest in Esports due to its immersive and engaging nature. Moreover, technological advancements, particularly in high-speed internet and streaming services, have made Esports more accessible to fans, resulting in a considerable increase in viewership, sponsorships, and advertising opportunities. Additionally, the emergence of social media platforms has enabled Esports players and teams to connect with a dedicated fan base, leading to enhanced exposure and endorsements. The global proliferation of mobile gaming has also democratized Esports by attracting a broader audience, including casual gamers and individuals in developing regions with limited access to traditional gaming setups. Lastly, the significant investments from major corporations, including tech giants and established sports entities, have infused substantial financial support into the Esports ecosystem, fostering its growth and professionalization. These converging factors collectively underpin the rapid development and promising future prospects of the Esports industry.
Esports Market Scope:
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | USD 8.16 billion |
| Growth Rate | CAGR of 20.62% during 2024-2032 |
| Segment Covered | By Streaming Platform, By Revenue Streaming, By Streaming Type, By Gaming Genre, By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Tencent Holdings Limited, Activision Blizzard Inc., Modern Times Group MTG AB, Electronic Arts Inc., Take-Two Interactive Software Inc., Nintendo Co., Ltd., Microsoft Corporation, Sony Corporation, Valve Corporation, and NetEase Inc. |
Market Definition
Esports is a form of competitive electronic sports, characterized by professional gamers and teams engaging in competitive gameplay across a variety of video games to gain recognition and lucrative rewards. This rapidly growing industry encompasses structured tournaments, online broadcasts, and brand partnerships, uniting a global community of dedicated gamers and fans who actively participate in and endorse their preferred teams.
Esports, or electronic sports, holds a notable position in today's modern era. It serves as a platform for skilled gamers to exhibit their abilities and compete professionally, akin to traditional athletes. With its widespread recognition globally, Esports has amassed a large following and created substantial economic prospects through sponsorships and tournament prize pools worth millions of dollars. Moreover, it cultivates a sense of community and solidarity among gamers, allowing them to connect with like-minded individuals worldwide. The realm of Esports offers various professional opportunities, including gamers, coaches, commentators, and streamers, in response to the increasing demand for entertainment in the gaming landscape. Furthermore, it drives technological progress, especially in virtual reality and artificial intelligence, contributing to the advancement and innovation of the gaming industry. In essence, Esports serves as a pivotal force in molding the future of entertainment by showcasing the vast potential of digital gaming and its influence on different facets of society.
Key Market Segmentation:
Insights On Key Streaming Platform
YouTube
YouTube is expected to dominate the Global Esports Market. With its immense popularity and widespread global usage, YouTube has the potential to reach a diverse and vast audience. The platform offers a range of content, including live streaming, highlight reels, tutorials, and analysis, catering to the interests and needs of esports enthusiasts worldwide. YouTube's user-friendly interface and accessibility across different devices contribute to its dominance in the market. Additionally, YouTube's robust advertising ecosystem and monetization options provide esports organizations and players with a significant revenue stream. These factors, combined with YouTube's established reputation as a leading video-sharing platform, make it the frontrunner in dominating the Global Esports Market.
Twitch
Twitch, although a popular streaming platform for esports, may not dominate the Global Esports Market as YouTube does. While Twitch primarily focuses on gaming and esports-related content, it is mainly known for its live streaming capabilities. However, Twitch's user base is more niche compared to YouTube, limiting its potential reach. Although the platform offers features specifically designed for esports, such as live chat and interactive elements, Twitch's dominance is challenged by YouTube's broader appeal and massive user base. Nonetheless, Twitch still remains a prominent player in the esports streaming sector, serving as a vital platform for esports communities, dedicated gamers, and enthusiasts.
Other Streaming Platforms
Other streaming platforms, such as DLive, Facebook Gaming, Mixer (formerly known as Beam), and Bilibili, may have a smaller market share compared to YouTube and Twitch. These platforms offer unique features and cater to specific regions or communities, but their user bases are relatively limited in comparison. While some of these platforms may excel locally or in specific demographics, their reach on a global scale is not as significant. As the esports market continues to grow, these platforms may find niches within certain parts or regions, but they are not expected to dominate the overall Global Esports Market.
Insights On Key Revenue Streaming
Sponsorship
Sponsorship is expected to dominate the Global Esports Market. With the rapid growth of esports, more and more brands are recognizing the value of sponsoring esports events, teams, and players. The esports industry offers a unique opportunity for brands to engage with a highly engaged and passionate audience. Sponsorship allows brands to increase their visibility and reach among esports fans, and also provides a platform for product placements and brand integrations. Major companies across various industries, including technology, automotive, and consumer goods, are investing significant resources in esports sponsorship. The increasing number of partnerships and sponsorship deals in the esports industry indicates its dominance in driving revenue for the market.
Media Rights
Media Rights is another significant sector of the Revenue Streaming category in the Global Esports Market. As esports continues to gain popularity, media companies are increasingly acquiring the rights to broadcast and stream esports tournaments and events. Esports fans have a growing appetite for viewing and consuming the latest esports content, which creates a lucrative market for media rights. With the rise of streaming platforms and the increasing number of viewership, media rights provide a valuable revenue stream for the esports industry. Media companies are not only broadcasting live tournaments but also producing exclusive esports content, thus solidifying the dominance of media rights in the Global Esports Market.
Merchandise & Tickets
Merchandise & Tickets is an essential player of the Revenue Streaming in the Global Esports Market. Esports enthusiasts have a strong affinity for their favorite teams and players, and they show their support through purchasing team merchandise and attending live events. Merchandise sales include jerseys, apparel, accessories, collectibles, and other branded items associated with esports teams and events. Live events, such as tournaments and leagues, attract a significant number of attendees, who purchase tickets to watch the competitions in person. The fan-driven demand for merchandise and tickets contributes to the revenue dominance of this part in the Global Esports Market.
Game Publisher Fees
Game Publisher Fees represent a vital component of the Revenue Streaming in the Global Esports Market. Many competitive esports titles are developed and published by game publishers who charge fees for various aspects of the esports ecosystem. These fees can include licensing, franchising, game approvals, and usage rights. Game publishers play a crucial role in shaping esports tournaments, leagues, and events as they provide the gaming platform and infrastructure for the competitions. The fees they charge tournament organizers, teams, and other entities further contribute to the revenue generated in the Global Esports Market.
Advertisement
Advertisement is a significant sector under the Revenue Streaming category in the Global Esports Market. As the esports audience continues to expand, brands are increasingly turning to advertising as a means to reach this highly engaged and valuable demographic. Esports platforms, streaming services, and tournament organizers offer a variety of advertising opportunities, such as in-stream ads, sponsored content, and promotions during live broadcasts. The influx of advertising investment from both endemic and non-endemic brands showcases the potential dominance of this part in generating revenue within the Global Esports Market.
Others
The Others category encompasses various revenue streams within the Global Esports Market that contribute to the overall revenue generation. These may include revenue from game publishers for licensing agreements, prize money from tournaments, platform fees for tournaments and events, partnerships with technology companies, and revenue from digital products like in-game purchases. Although these revenue streams may not dominate the market individually, collectively, they play a significant role in the overall financial ecosystem of the esports industry. The "Others" part adds diversity and flexibility to the esports market, contributing to its overall growth and sustainability.
Insights On Key Streaming Type
Live
The Live streaming type is expected to dominate the Global Esports Market. Live streaming allows viewers to watch Esports events in real-time, providing an interactive and engaging experience. This form of streaming enables fans to actively participate through live chats, supporting their favorite teams, and experiencing the excitement of the gameplay as it happens. With the fast-paced nature of Esports tournaments and the desire for immediate consumption, the live streaming part offers the most immersive and dynamic experience for Esports enthusiasts. As a result, it is expected to be the dominant part in the Global Esports Market.
Video-on-demand
While the Live streaming type dominates the Global Esports Market, the Video-on-demand type also plays a significant role in catering to the preferences of certain viewers. Video-on-demand allows users to access pre-recorded Esports content at their convenience, offering flexibility and the ability to watch matches and highlights on-demand. This part appeals to fans who may not be able to devote time to watching live events or prefer to watch specific matches or s of gameplay. Although Video-on-demand may not enjoy the same level of engagement as Live streaming, it serves as an important alternative for Esports fans who seek flexible viewing options.
Insights On Key Gaming Genre
Multiplayer Online Battle Arena Games
Multiplayer Online Battle Arena Games, also known as MOBA games, are expected to dominate the Global Esports Market. This part has witnessed significant growth and popularity in recent years. MOBA games such as League of Legends and Dota 2 have a massive player base and attract millions of viewers for their esports tournaments. These games offer competitive gameplay, teamwork, and strategic depth, making them highly engaging for both players and spectators. Additionally, MOBA games have a dedicated esports ecosystem with professional teams, leagues, and international championships. The fan following and prize pools associated with MOBA esports events are massive, further solidifying its dominance in the global esports market.
First Person Shooter Games
First Person Shooter (FPS) Games, while not dominating the global esports market, still hold a significant position. Popular FPS titles like Counter-Strike: Global Offensive (CS:GO) and Overwatch have a strong esports presence. These games offer intense competitive gameplay, requiring quick reflexes, precision, and teamwork. FPS esports tournaments attract a large audience and offer substantial prize money. However, the dominance of FPS games in the esports market is overshadowed by the popularity and scale of MOBA games.
Real-time Strategy Games
Real-time Strategy (RTS) Games have a niche following in the esports community. Games like StarCraft II and Warcraft III have established themselves as competitive esports titles. RTS games provide a different experience, focusing on strategic decision-making, resource management, and multitasking. While these games have loyal fans and dedicated tournaments, their appeal is relatively limited compared to other parts. Thus, RTS games do not have the same level of dominance as MOBA games in the global esports market.
Fighting Games
Fighting games have a dedicated community and competitive scene, but they do not dominate the global esports market. Titles like Street Fighter V and Tekken attract a passionate player base and host renowned esports events. However, the popularity of fighting games is more niche compared to the broader appeal of MOBA or FPS games. The emphasis on one-on-one battles and complex combos makes fighting games thrilling to watch, but they do not have the same widespread appeal as the dominant parts.
Mass Multiplayer Online Role-playing Games
Mass Multiplayer Online Role-playing Games (MMORPGs) do not dominate the global esports market. While games like World of Warcraft and Final Fantasy XIV have a massive player base and host esports events, they are primarily known for their rich storytelling and social interaction rather than competitive gameplay. MMORPGs offer a different experience, focusing on character progression, exploration, and collaboration with other players. While there is a market for MMORPG esports, it does not have the same level of dominance or mass appeal as MOBAs or FPS games.
Others
The Others category encompasses various gaming genres that do not fall into the mentioned parts. These parts may include niche or emerging genres, experimental game types, or games with unique gameplay mechanics. While there might be some esports tournaments and communities associated with these games, they do not dominate the global esports market. The dominance of MOBA games in the esports landscape overshadows any potential influence these parts may have in the market.
Insights on Regional Analysis:
Asia Pacific
Asia Pacific is expected to dominate the Global Esports market. This region has a strong presence in the industry due to several factors. Firstly, countries like China and South Korea have a long-standing tradition and passion for competitive gaming. They have developed robust esports ecosystems, with professional leagues, teams, and a large fan base. Additionally, the increasing popularity of mobile gaming in countries like India and Indonesia has contributed to the growth of the esports market in the region. The availability of high-speed internet and advancements in technology have also made it easier for players to connect and compete in tournaments. With a large population base and a growing middle class that has disposable income to spend on gaming, the Asia Pacific region is well-positioned to continue its dominance in the Global Esports market.
North America
While Asia Pacific is expected to dominate the global esports market, North America holds a significant share in the industry. The region has a thriving esports scene, with the United States and Canada being the major contributors. North America has a large pool of talented players, leading esports teams, and a dedicated fan base. Major tournaments and leagues, such as the League of Legends Championship Series and the Overwatch League, attract millions of viewers and generate substantial revenue. The region's strong infrastructure, high internet penetration, and strategic partnerships with technology companies further enhance its position in the esports market.
Europe
Europe has a strong esports presence and is one of the key regions contributing to the global esports market. Countries like Sweden, Germany, and France have a rich esports history and have produced top-tier teams and players in various games. Europe hosts major esports tournaments, such as the Electronic Sports World Cup and the DreamHack series, attracting players and fans from all over the world. The region's well-established gaming culture, strong esports organizations, and growing investment in infrastructure and talent development contribute to its prominence in the global esports market.
Latin America
Latin America is emerging as a significant player in the global esports market. Countries like Brazil and Mexico have a growing esports scene, with the popularity of games like League of Legends and Counter-Strike: Global Offensive on the rise. The region's large population and increasing internet penetration provide a massive potential consumer base for esports. While Latin America may not dominate the global market at present, it is expected to experience substantial growth and establish itself as a competitive force in the coming years.
Middle East & Africa
The Middle East & Africa region is also witnessing a rise in esports participation and viewership. Countries like Saudi Arabia and the United Arab Emirates are investing heavily in esports infrastructure, hosting tournaments, and building dedicated esports arenas. The region's young population, rising internet penetration, and increasing smartphone adoption contribute to the growth of the esports market. Although it may not currently dominate the global esports market, the Middle East & Africa region has significant potential for expansion and could become a prominent player in the future.
Company Profiles:
Major contributors to the worldwide esports industry include companies like Tencent Holdings Ltd., Activision Blizzard Inc., and Electronic Arts Inc., who serve as developers, publishers, and event organizers. These firms play a vital role in driving the expansion and monetization of the esports sector.
Prominent companies in the world of esports comprise Tencent Holdings Limited, Activision Blizzard Inc., Modern Times Group MTG AB, Electronic Arts Inc., Take-Two Interactive Software Inc., Nintendo Co., Ltd., Microsoft Corporation, Sony Corporation, Valve Corporation, and NetEase Inc.
COVID-19 Impact and Market Status:
The global esports market has experienced a rapid growth surge due to the Covid-19 pandemic, attributing it to the cancellation of physical sports events. This led to a significant rise in viewership and participation in online gaming competitions.
The global esports market has undergone a substantial transformation in light of the COVID-19 pandemic. As a direct consequence of the postponement or cancellation of traditional sporting events, there has been a noticeable decline in conventional sports betting, prompting a surge in interest in esports wagering. This paradigm shift has created fresh avenues for esports platforms, attracting a larger and more diverse audience. The transition of physical gaming events and tournaments to online formats, a response to the global crisis, has resulted in ened levels of viewership and engagement.
Leading esports streaming platforms such as Twitch and YouTube Gaming have experienced a significant increase in viewers as individuals turned to digital entertainment and social connectivity amid periods of confinement.
Furthermore, the pandemic has expedited the mainstream acceptance of esports as a legitimate form of entertainment, marked by augmented media exposure and corporate partnerships. In the face of adversity, the esports industry has displayed remarkable resilience and adaptability, poised to sustain its growth trajectory beyond the pandemic's aftermath.
Latest Trends and Innovation:
- In September 2020, video game developer and publisher Electronic Arts (EA) announced its acquisition of Codemasters, a renowned racing game developer, in a deal worth $1.2 billion.
- In November 2020, professional esports organization Cloud9 secured a $30 million investment. This funding round was led by Valor Equity Partners, contributing to the organization's expansion plans.
- In March 2021, Skillz, a mobile esports platform, completed its merger with special purpose acquisition company (SPAC) Flying Eagle Acquisition Corp. The combined entity was valued at approximately $3.5 billion.
- In May 2021, Logitech, a leading computer peripherals manufacturer, acquired Streamlabs, a provider of live streaming tools and software. This acquisition aimed to enhance Logitech's position in the streaming and content creation market.
- In July 2021, esports tournament and event organizer ESL Gaming announced a long-term partnership with American multinational technology company Intel. The partnership was focused on enhancing the esports ecosystem and supporting professional players and organizations.
- In August 2021, Tencent Holdings, a Chinese conglomerate, acquired British video game company Sumo Group for approximately $1.3 billion. The acquisition aimed to expand Tencent's presence in the gaming industry.
- In September 2021, Cloud9 announced a strategic partnership with AT&T. This collaboration focused on utilizing AT&T's 5G and Edge Computing solutions to improve the gaming experience and support Cloud9's operations.
- In October 2021, streaming platform Twitch, owned by Amazon, signed a multi-year broadcasting rights deal with the National Hockey League (NHL). This partnership aimed to expand the reach of NHL esports content and engage with a wider audience.
Significant Growth Factors:
Key drivers of the Esports industry's expansion comprise the growth of worldwide internet accessibility, augmented investments from corporate backers, and broadening viewer participation.
The Esports industry has experienced significant growth recently due to various key factors. The popularity and accessibility of online gaming platforms have been major drivers of this expansion. High-speed internet availability and technological advancements have enabled millions of players to engage in competitive gaming tournaments, leading to a large and active player community. Moreover, the increasing recognition of Esports as a credible form of entertainment has attracted substantial investments from sponsors, advertisers, and media entities. This influx of financial backing has paved the way for the development of professional leagues and tournaments, boosting the visibility and commercial success of Esports. Additionally, Esports' ability to capture audiences through diverse platforms such as live streaming services and social media has increased its global reach. Enthusiasts worldwide can now follow their favorite players and teams with ease, fostering a lively and engaged community. Furthermore, collaborations between sports organizations and Esports teams have expanded the industry's audience and added legitimacy to its status. The integration of virtual reality and augmented reality technologies has also enriched the Esports experience, drawing in more participants and viewers. With these growth drivers in place, the Esports market is poised to continue its upward trend, offering significant opportunities to stakeholders within the industry landscape.
Restraining Factors:
The Esports market encounters a notable hurdle in the form of its restricted mainstream recognition and comprehension.
The Esports industry has experienced significant growth in recent years due to the rising popularity of competitive gaming. However, certain obstacles hinder its continued development. The lack of widespread acceptance is a key challenge, as Esports is still viewed as a niche pursuit, limiting support from mainstream media and sponsors. Furthermore, the absence of standardized regulations undermines the industry's credibility, making it challenging to establish consistent standards across various leagues and tournaments. The high costs associated with infrastructure and equipment necessary for Esports events also present barriers to entry for players and organizations.
Additionally, the geographical constraints of Esports events limit their accessibility and audience reach. Despite these challenges, the industry is growing rapidly, driven by increased recognition and acceptance of Esports as a legitimate form of entertainment, alongside the emergence of dedicated platforms and technological advancements, opening up ample opportunities for future growth.
Key Segments of the Esports Market
Streaming Platform Overview
• Twitch
• YouTube
• Other Streaming Platforms
Revenue Streaming Overview
• Media Rights
• Advertisement
• Sponsorship
• Merchandise & Tickets
• Game Publisher Fees
• Others
Streaming Type Overview
• Live
• Video-on-demand
Gaming Genre Overview
• Real-time Strategy Games
• First Person Shooter Games
• Fighting Games
• Multiplayer Online Battle Arena Games
• Mass Multiplayer Online Role-playing Games
• Others
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• U.K
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The forecast period of esports market is 2024-2032.
The global esports market was valued at USD 8.16 billion in 2032.
Tencent Holdings Limited, Activision Blizzard Inc., Modern Times Group MTG AB, Electronic Arts Inc., Take-Two Interactive Software Inc., Nintendo Co., Ltd., Microsoft Corporation, Sony Corporation, Valve Corporation, and NetEase Inc.
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