Esports Market - Global Outlook & Forecast 2024-2029

ESPORTS MARKET OVERVIEW

The global esports market size was valued at USD 1.96 billion in 2023 and is expected to reach USD 5.17 billion by 2029, growing at a CAGR of 17.48% during the forecast period. The esports market growth is fueled by several key factors, including the increasing internet penetration rate, which provides broader access to online gaming and streaming platforms. Organized leagues and tournaments create a structured environment that attracts both players and spectators. Government support and educational initiatives further legitimize esports, fostering talent, promoting its development as a viable career path, and supporting the global esports market growth.

ESPORTS MARKET TRENDS & OPPORTUNITIES

Growing Popularity Among Genz and Millennials

The world of competitive video gaming, has rapidly increased in popularity and acceptance over the past decade. This growth can be attributed largely to two demographic cohorts: Generation Z and Millennials. In 2023, events like the League of Legends World Championships draw millions of viewers and feature performances by artists like Imagine Dragons and Lil Nas X in packed stadiums. Marketers are eager to reach its valuable audience, which consists mainly of tech-savvy Gen Z and millennials, who are difficult to target through traditional advertising methods due to adblock and ad-blindness. Furthermore, the regular online consumption of esports in European countries reveals the success of the esports market. Italian and Spanish people regularly visit relevant online platforms. The popularity of esports in Spain and Italy is due to the higher adoption of new digital trends. The growing media presence and public coverage of esports are leading to a higher general awareness.

Adoption of Digitization

The adoption of digitization has primarily changed the esports market net worth, driving its rapid growth and expanding its reach. From the early days of competitive gaming, where tournaments were modest and localized, the shift to digital platforms has enabled esports to become a global trend. The booming digital economy, driven by the rapid growth in smartphone shipments, is fueling the expansion of the eSports industry. As more people access advanced devices and stay connected, the industry is poised to benefit from increased viewership, engagement, and participation. The convergence of technology and gaming, supported by this digital growth, is set to propel eSports into a mainstream entertainment giant, attracting both new players and larger audiences globally.

INDUSTRY RESTRAINTS

Fraudulent Activity

Data monetization will lead to privacy issues as esports continue to grow; personal data, including players’ names, nicknames, likenesses, and player performance data, have become very valuable. In 2024, E-Nugget online gaming fraud in Kolkata (India) has generated a shadow over the burgeoning eSports market, shaking investor confidence and user trust. The incident highlights the vulnerabilities within the digital gaming space with ₹90 crore ($10.9 million) frozen across 70 accounts and ₹19 crore ($2.28 million) seized from 2,500 bank accounts. The app's deceitful promise of high returns before its abrupt shutdown has left many users financially stranded, potentially stalling the growth of eSports as regulators tighten scrutiny and potential players and investors grow wary of future investments in the sector.

SEGMENTATION INSIGHTS

INSIGHTS BY REVENUE

The global esports market by revenue is segmented into sponsorships, advertisements, media rights, game publisher fees, and merchandise & tickets. The segment that typically accounts for the highest market revenue share is sponsorship. This segment dominates because brands and companies recognize the significant value of the esports audience, which is primarily young, tech-savvy, and highly engaged. By sponsoring teams, tournaments, and individual players, brands can directly reach this lucrative demographic, making sponsorship deals and advertising a major revenue driver in the industry. The increasing viewership and global appeal of eSports further amplify this segment's dominance in revenue generation.

INSIGHTS BY GAME

The multiplayer online battle arena (MOBA) game segment holds the most prominent share of the global esports market in 2023. This dominance of this segment is due to its massive player base, extensive global leagues, high viewership, and substantial sponsorships. MOBAs offer deep strategic gameplay, fostering a competitive environment that appeals to both casual players and professional athletes, leading to significant investments and large-scale tournaments. Additionally, these games' longevity and consistent updates keep their communities engaged, further boosting their prominence in the industry.

INSIGHTS BY PLATFORM

The global esports market by platform is segmented into console, pc, and mobile & tablets. In 2023, the console segment held the majority share due to its broad accessibility and strong presence in competitive gaming. Consoles like PlayStation and Xbox have established dedicated esports communities and are favored for their user-friendly interfaces, high performance, and exclusive game titles. Additionally, consoles offer a standardized gaming experience, which is crucial for fair competition. Their integration with streaming platforms and robust support for multiplayer games further solidifies their dominant position in the eSports market.

GEOGRAPHICAL ANALYSIS

North America dominated the global esports market share, accounting for over 44% in 2023. The region's dominance can be attributed to the high internet penetration rate and technological advancements. The U.S. contributed the highest revenue share globally in this sector, driven by top companies' presence and growing popularity among young audiences. The growing integration of esports into Native American education and culture highlights a significant shift in how the esports market is evolving. As Native American schools embrace esports, they are creating new opportunities for students and adding rich cultural dimensions to the gaming industry. For instance, games like Never Alone, which incorporate Indigenous narratives and collaboration with Alaska Native elders, reflect a broader trend where gaming is becoming a platform for cultural representation and storytelling.

Furthermore, in the APAC region, revenue generated majorly from China, South Korea, and Japan is the dominant force in the esports market, mainly due to a deep-rooted gaming culture, advanced technological infrastructure, and substantial investment from private and public sectors. The region's preference for mobile gaming has fueled the popularity of mobile esports titles like "Mobile Legends" and "PUBG Mobile." Moreover, while somewhat fragmented due to language and cultural diversity, Europe has a strong esports market in countries like Germany, Sweden, and the UK, focusing on community-driven events and grassroots tournaments. According to the global esports market report, Latin America, the Middle East & Africa are emerging markets driven by a young, tech-savvy population and increasing internet penetration. These regions are seeing rapid growth in viewership and participation, although they still lag in terms of infrastructure and investment.

COMPETITIVE LANDSCAPE

Companies like Microsoft, Electronic Arts, and Take-Two Interactive Software, among others, have for many years brought to gamers some of the most detailed, deep, and competitive multiplayer games available in the eSports market. These publishers set the standard and create experiences that are brimming with competitiveness. Microsoft is well-experienced in the world of professional gaming. Games such as Starcraft, Warcraft, and now Overwatch make for good entertainment and are popular and lucrative pro-gaming scenes. Furthermore, six major companies in the global esports market lead the industry: Sony Group Corporation, Microsoft, Electronic Arts, ESL FACEIT Group, Take-Two Interactive Software, and Tencent. Sony Group Corporation is also one of the major vendors in the esports market due to its strategic investments and robust PlayStation ecosystem. For example, in 2022, the company acquired esports platform Repeat.gg and a stake in the Evolution Championship Series (EVO), one of the biggest fighting game tournaments globally. These moves bolstered Sony's influence in the competitive gaming scene.

Key Developments in the Global Esports Market

1. In 2024, Electronic Arts will invest heavily in its flagship franchises, such as FIFA, Madden NFL, and The Sims, continuously updating and expanding them to retain and grow their user base.
2. Microsoft focuses on industry mergers and acquisitions. In 2022, the organization acquired Activision Blizzard, Inc. to expand its product portfolio and gain a competitive advantage in the market.