The global Esports market is predicted to reach USD 1.75 billion in 2024 and USD 5.23 billion by 2029, growing at a CAGR of 24.4% during the forecast period.
Electronic sports or esports are a group of sports played online through video games. Each team or individual participates in several popular online games, and sponsors compete for greater participation from the global audience. The global eSports market is a scene of intense competition that increasingly takes place in front of a live audience to build loyalty and measure audience loyalty. Globally, the demand for video games and online games has increased dramatically. People all over the world are now very interested in eSports and investing their time and money in it. These factors have significantly accelerated the global esports market. The increased awareness of esports also plays an important role in the dynamism of the global esports market. In addition, large-scale investments in esports are also expected to boost this market.
Advertising includes revenue generated from advertisements targeting esports viewers, including advertisements displayed during live broadcasts on online platforms, video-on-demand content of esports or sports matches, and esports TV. As the audience grows on online platforms like Twitch and YouTube, advertising is expected to generate more revenue over the forecast period. Twitch and YouTube led the overall business with 1.13 million active streamers and 432,000 active streamers each quarter, respectively, in 2018. Therefore, with the growing number of streamers, relevant advertising content is expected to increase, which will help generate income for the industry. Additionally, the Overwatch League Grand Final, which took place on September 29, 2019, saw a 16% increase in viewership over last year, resulting in an AMA (Average Minutes Audience) of 1.12 million worldwide. Therefore, to keep track of Overwatch League and Call of Duty League audiences, Activision Blizzard partnered with Nielsen in April 2018 to track Overwatch League and Call of Duty League audiences. This partnership aimed to accurately measure the audience for these events, helping Activision Blizzard to establish precise advertising and investment partnerships.
Associations such as the World Esports Association (WESA) and the Esports Integrity Coalition work with stakeholders in the esports business to secure the integrity related to competition and investigate different kinds of cheating, including manipulation in any match. Hence, it would have a positive outlook in the market and should complement the market growth.
In addition to offering sports programs, academic institutions also offer scholarships to players to stimulate growth. Lack of supporting infrastructure and lack of sports awareness are some of the factors hampering the growth of the market during the forecast period. The tournament's limited infrastructure and a small number of organizations limited market growth.
As the COVID-19 pandemic has forced billions of people around the world to spend more time at home, the entertainment industry has caught their attention with live concerts, opera performances, museum tours, and more. The impact on the video game industry can be even greater as many take advantage of the hobby or increase the time they play. According to Verizon, global video game internet traffic has grown 75% since restrictions were imposed in the United States in the first quarter of 2020. Historically, the eSports market has grown nearly 18% worldwide in the last five years.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
24.4% |
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Segments Covered |
By Revenue Stream, Media Rights, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Nintendo, Tencent, Turner Broadcasting System, Activision Blizzard, Modern Times Group, Valve Corporation, and Others. |
The key regions covered in the global esports market are Europe, Asia Pacific, Latin America, North America, the Middle East, and Africa. Asia-Pacific is expected to retain a higher market share during the forecast period. This region has almost a third of participation in the global esports market in recent years. Asia Pacific is a promising area for the expansion of the gaming industry because of ease of entry. Additionally, the growing competition in esports in the region has made it the most lucrative regional market. Investors from Western regions are investing heavily in the esports market in this region. China is expected to hold a significant market share in the esports market due to the popularity of esports among young people and the government's support for market growth. For instance, Hangzhou, a Chinese city, plans to build 14 esports facilities by 2022. Additionally, Hangzhou will host the Asian Games in 2022, where esports is expected to be an official medal event. With its investments, China should hold a significant market share.
By Revenue Stream
By Media Rights
By Region
Frequently Asked Questions
The primary revenue streams for the esports market include sponsorships, media rights, advertising, merchandise and ticket sales, and publisher fees. Sponsorships are the largest segment, followed closely by media rights.
Esports viewership has been growing rapidly and, in some cases, rivals that of traditional sports. Major esports events can attract audiences comparable to those of established sports events. For instance, the 2020 League of Legends World Championship Finals had over 45 million concurrent viewers, similar to the Super Bowl.
The main challenges facing the esports market include maintaining sustainable growth, managing player burnout, ensuring competitive integrity, navigating the regulatory environment, and addressing the need for infrastructure development in emerging markets.
The esports market is expected to continue its robust growth over the next five years, driven by increasing investment from mainstream brands, the development of regional leagues, advancements in streaming technology, and greater acceptance of esports as a legitimate form of entertainment and competition. By 2028, the market could be valued at over $3 billion, with more diversified revenue streams and an expanded global audience.
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