Esports Market Rising at 20.9% CAGR to be worth USD 10,905.1 Million by 2032 || Market.us

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Technological advancements play a crucial role in the growth of the esports market. The availability of high-speed internet, improved streaming platforms, and advanced gaming hardware have made it easier for players to compete and for audiences to watch esports events. The development of esports-specific arenas and dedicated gaming facilities further enhances the infrastructure necessary for hosting tournaments and promoting professional esports competitions.

New York, Jan. 08, 2024 (GLOBE NEWSWIRE) -- According to a comprehensive report by Market.us, The Global Esports Market size was projected to be USD 1,983.4 Million in 2023. By the end of 2024, the industry is likely to reach a valuation of USD 2,396.9 Million. During the forecast period 2023-2032, the global market for esports is expected to garner a 20.9% CAGR and reach a size of USD 10,905.1 Million by 2032.

Esports, short for electronic sports, refers to competitive video gaming where professional players and teams compete against each other in various video games. It has gained remarkable popularity and has evolved into a lucrative industry known as the esports market. The esports market encompasses a wide range of elements, including professional players, teams, tournaments, leagues, sponsors, and fans. Just like traditional sports, esports has its own ecosystem with dedicated fans who follow and support their favorite teams and players. These fans often attend live events or watch online streams to witness thrilling gameplay and cheer for their chosen esports stars.

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Esports Market
Esports Market

One of the driving forces behind the growth of the esports market is the increasing accessibility of video games and the proliferation of online platforms for gameplay and streaming. This accessibility has allowed esports to reach a global audience, transcending geographical boundaries and attracting millions of viewers from around the world.

Key Statistics

  • The Esports market is expected to reach a size of USD 10,905.1 million by 2032, exhibiting a robust Compound Annual Growth Rate (CAGR) of 20.9% during the period 2023-2032.

  • Live streaming dominates with a major revenue share of 64.8%.

  • Multiplayer Online Battle Arena (MOBA) games lead with a significant revenue share of 32.6%.

  • Smartphones dominate the market with a major revenue share of 32.4%

  • North America holds the largest market share, accounting for 37.2% of the revenue. This dominance is due to its well-established esports ecosystem and high disposable income levels.

  • Major players in the esports market include Twitch Interactive, Inc., Activision Blizzard, Inc., Tencent Holdings Ltd., and others, contributing to the industry's growth and development.

Factors Affecting the Growth of the Esports Market

  • Technological Advancements: The progress in gaming technology, including graphics, game design, and online connectivity, significantly impacts the esports market. Improvements in streaming services and platforms also make it easier for audiences to access and engage with esports content, contributing to market growth.

  • Increased Audience Reach: The global accessibility of the internet has broadened the audience for esports. Platforms like Twitch, YouTube, and Facebook Gaming allow millions worldwide to watch live tournaments and competitions, expanding the market's reach and potential consumer base.

  • Rising Popularity and Legitimization: As esports continues to gain recognition as a legitimate form of competition, more people are taking an interest. The inclusion of esports in mainstream media and the consideration of its addition to international events like the Asian Games and the Olympics enhance its profile and acceptance.

  • Investment and Sponsorship: The influx of investment from venture capitalists, traditional sports teams, and celebrities, along with significant sponsorships from major brands, fuels the growth of the esports industry. This financial support helps improve the quality and scale of events and contributes to the overall ecosystem.

For instance, 

  • As of April 2018, Fortnite had amassed a revenue of ~USD 296 million across platforms, surpassing the annual earnings of numerous significant console and PC games. This trend is poised to continue with the addition of new gamers to the ecosystem, leading to a growth in eSports audiences and, consequently, an increase in revenue over time.

  • The city of Hangzhou in China is exploring plans to construct 14 esports facilities by 2022, with an estimated investment of CNY 15.45 billion (~USD 2.22 billion). This substantial investment is aimed at positioning Hangzhou as the leading hub for esports on a global scale.

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Report Segmentation

Based on Type

In 2023, the Live segment held a dominant market position in the esports industry, capturing more than a 64.8% share. This preference for live streaming is driven by the immediacy and excitement of watching events unfold in real-time, mirroring the experience of traditional sports. Live streams allow fans to engage directly with the event and each other, creating a communal viewing experience that is highly valued in the esports community. Platforms like Twitch, YouTube Gaming, and others have capitalized on this demand, offering extensive live coverage of tournaments, matches, and leagues. The thrill of live interaction, coupled with the opportunity for viewers to support their favorite players and teams as the action happens, significantly contributes to the segment's dominance.

Based on Revenue Streaming

In 2023, the Sponsorship segment held a dominant market position in the esports industry, capturing more than a 38.4% share. This substantial portion is largely attributed to the mutually beneficial relationships between esports entities and sponsors. Brands, recognizing the value of the highly engaged, predominantly young audience that esports attracts, invest in teams, events, and leagues to enhance their visibility and consumer perception. In turn, these sponsorships provide essential funding for the industry, supporting event organization, prize pools, and team operations. The growth of this segment reflects the increasing recognition of esports as a legitimate and lucrative advertising platform.

Esports Market Share
Esports Market Share

Based on the Gaming Genre

In 2023, the Multiplayer Online Battle Arena (MOBA) Games segment held a dominant market position, capturing more than a 32.6% share of the esports market. This genre, known for titles like 'League of Legends' and 'Dota 2', continues to attract a vast global audience due to its strategic depth and competitive nature. Real-Time Strategy (RTS) games, though not as dominant, maintain a steady market presence with classics such as 'StarCraft'. These games demand quick decision-making and in-depth tactical play, contributing to a significant portion of the market. First-Person Shooter (FPS) games, characterized by titles like 'Counter-Strike' and 'Overwatch', are also a major force, offering fast-paced and immersive gameplay that appeals to a wide range of players.

Based on Device Type

In 2023, the Smartphone Segment held a dominant position in the esports market, capturing more than a 32.4% share. This substantial portion can be attributed to the widespread availability and increasing capabilities of smartphones, making them a preferred device for accessing real-time strategy games and other esports genres. The convenience and portability of smartphones have fostered a significant user base, with millions around the globe engaging in esports through their mobile devices.

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Things to know

Report Attributes

Details

Current state (2023)

US$ 1,983.4 Million

Forecast Value 2032

US$ 10,905.1 Million

CAGR (2023 to 2032)

20.9%

North America Revenue Share

37.2%

Biggest market

US (2023)

Base Year

2023

Historic Period

2018 to 2022

Sectors

Game Developers and Professional Teams

Biggest Challenges in 2023

Economic Headwinds

Growth

Video games, Rising viewership and engagement

Regional Analysis

In 2023, North America held a dominant market position in the esports market, capturing more than a 37.2% share. This substantial market presence can be attributed to the widespread acceptance of esports as a legitimate competitive platform, coupled with significant investments in gaming infrastructure and technology. The region has also seen a surge in the number of esports enthusiasts and professional gamers, further bolstering its market size.

Esports Market Region
Esports Market Region

Driving Factors:

  1. Growing Viewer Base: The increasing popularity of esports globally has resulted in a substantial viewer base, driving demand for more tournaments and gaming content.

  2. Rising Sponsorship and Advertising: As esports gains mainstream recognition, more companies are investing in sponsorships and advertising, significantly boosting the market's financial ecosystem.

  3. Technological Advancements: Innovations in gaming technology, streaming services, and interactive platforms enhance the viewer experience, attracting more participants and spectators to esports.

  4. Inclusion in International Competitions: The recognition of esports in major sporting events and the possibility of inclusion in the Olympics bolster its legitimacy and popularity, driving further growth.

Restraining Factors:

  1. Lack of Standardization: The absence of a unified global standard for organizing tournaments and defining professional criteria can hinder market growth and player development.

  2. Concerns Over Health and Wellbeing: Prolonged gaming sessions raise concerns about the physical and mental health of players, potentially restraining wider acceptance of esports as a career.

  3. Regulatory Challenges: Varying regulations across different regions regarding gaming, broadcasting, and monetization can complicate the organization of international events and market expansion.

  4. Dependency on Internet Infrastructure: Esports heavily relies on stable and high-speed internet, making it less accessible in regions with inadequate digital infrastructure.

Growth Opportunities:

  1. Educational and Career Development: Increasing recognition of esports in educational institutions and as a viable career path opens up opportunities for market expansion and talent development.

  2. Diversification into New Genres: Exploring and incorporating a wider range of game genres can attract a more diverse audience and create new niches within the esports market.

  3. Emerging Markets: Expanding into untapped regions with growing internet penetration and a young demographic can significantly increase the market base for esports.

  4. Technological Integration: Integrating emerging technologies like VR and AR into esports can enhance the viewer experience and open up new avenues for market growth.

Challenges:

  1. Monetization Issues: Finding sustainable revenue models beyond sponsorships and advertising remains a challenge, especially for smaller organizations and tournaments.

  2. Cultural Acceptance: Despite its growing popularity, esports still faces skepticism and cultural barriers in some regions, affecting its recognition as a legitimate form of competition.

  3. Cybersecurity Threats: The online nature of esports makes it susceptible to hacking, cheating, and other cybersecurity threats, undermining the integrity of competitions.

  4. Player Burnout and Turnover: The intense nature of professional gaming can lead to high levels of stress and burnout among players, impacting the longevity of careers and the stability of teams.

Key Market Trends:

  1. Increased Live Event Attendance: As esports continues to grow, there's a notable trend towards larger live events with massive audiences, creating a stadium-like atmosphere for major tournaments.

  2. Mainstream Media Involvement: Traditional media outlets are increasingly broadcasting esports events, signaling a shift towards mainstream acceptance and broader audience reach.

  3. Collaborations and Franchising: There's a growing trend of collaborations between esports teams and traditional sports brands, as well as the franchising of teams and leagues to ensure stability and growth.

  4. Evolving Audience Engagement: Innovations in interactive viewing, fan engagement, and second-screen experiences are becoming more prevalent, enhancing the way audiences consume and interact with esports content.

Competitive Landscape

The competitive landscape of the Market has also been examined in this report. Some of the major players include:

  • Twitch Interactive, Inc.

  • Activision Blizzard, Inc.

  • Tencent Holdings Ltd.

  • Riot Games, Inc.

  • Gfinity PLC.

  • X1 Esports and Entertainment Ltd.

  • Loco

  • Gameloft SE

  • Sony Group Corporation

  • Valve Corporation

  • Electronic Arts

  • Other Key Players

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Key Market Segments

Based on Type

  • Live

  • On-Demand

Based on Revenue Streaming

  • Media Rights

  • Advertisement

  • Sponsorship

  • Ticket & Merchandise

  • Game Publisher Fees

  • Others

Based on the Gaming Genre

  • Real-Time Strategy Games

  • First-Person Shooter Games

  • Fighting Games

  • Multiplayer Online Battle Arena Games

  • Mass Multiplayer Online Role-Playing Games

  • Others

Based on Device Type

  • Smartphone

  • Smart TV

  • Desktop -laptop-tablets

  • Gaming console

Key Regions and Countries Covered in this Report:

  • North America

    • The US

    • Canada

  • Europe

    • Germany

    • France

    • The UK

    • Spain

    • Italy

    • Russia

    • Netherland

    • Rest of Europe

  • APAC

    • China

    • Japan

    • South Korea

    • India

    • Australia

    • New Zealand

    • Singapore

    • Thailand

    • Vietnam

    • Rest of APAC

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Rest of MEA

Recent Developments

  • In February 2022, Nintendo hosted its initial Direct event of the year, presenting a 40-minute showcase unveiling a range of new games and remakes. Notable highlights from Nintendo Direct 2022 included the announcement of titles such as Switch Sports and Mario Strikers, along with revelations about other upcoming games. The anticipation is that the market will experience growth with the release of these multiple games.

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