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The market dynamics of the esports industry are experiencing rapid growth and transformation, driven by a combination of technological advancements, changing consumer preferences, and increased investment from various stakeholders. While esports (competitive video gaming) was in its early stages, it was nothing more than a niche subculture attracting just a few fans in the world. However, within the space of few years, this has become a globally recognized brand, now having its dedicated and passionate fans.
In the first place, the way technological achievements affect the patterns of the esports industry is really very important. Being permanently on the look for ways of upgrading their devices, graphics and networking equipment has in fact seen the emergence of a new generation of esports, which is more interactive and better presented. The spread of power gaming PCs, gaming consoles, and mobile devices allows gamers to battle virtually within the esport arena or on other platforms, with the world becoming wider and wider for esports.
Consumer’s behavior and habits changes become the top causes of why the esports market grows. The younger generations, mainly, have demonstrated a strong willingness in relation to these sporting events to watch them as viewers and to play them. Because esports has exciting and interactive characteristic that allows viewers to talk authors directly through live streaming platform and social web, that viewers can engage or be part of the content. Attitude of consumers about esports, as a primary form of entertainment, has drastically changed, resulting in an increase in number of esports events, which draw more and more viewers across various parts of the globe.
Investment and sponsorship provided by these different sectors is the reason why the esports industry continues to experience such a rapid growth. We have realized that the major league brand, technology companies as well as the traditional sports industry is seeing esports as a promising potential in the big industry due to its influence and wealth. From sponsorship bilateral deals to commercial partnerships and provision of resources as a franchiser, from the perspective of financial sustainability of esports teams, leagues and tournaments these are all part of the income generating machine. A substantial amount of money from the investments has defined the rise of the esports industry. It has grown to cover by various reforms including decent work, professional competitiveness, and structured roles of players, trainers, experts, and support staff.
The dynamic in the esports market is closely connected to the nature and framework of the esports organizations and the structure of the esports leagues and tournaments. A case in point here is when franchised leagues, which very closely emulate the traditional sport leagues, are set up, the industry gains a level of stability, long-term convenience, and planning. Esports companies now conduct franchising system when teams are like registered entities on the basis of city/region. With this model fans are engaged more, the two regions start fighting each other and a storyline is told in the same way as with league sports.
TV broadcasting and media rights dominate, being what contributes most to the sports esports market development. Most of the upcoming esports content is distributed via a number of channels; among them: online streaming platforms, television networks, and dedicated esports platforms. The rise of exclusive broadcasting deals, partnerships with mainstream media outlets, and the creation of esports-focused content contribute to the increasing prominence of esports in the global media landscape. As viewership numbers continue to rise, esports events attract advertisers and sponsors, further enhancing the market dynamics.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 1.2 Billion |
| Market Size Value In 2023 | USD 1.4 Billion |
| Growth Rate | 17.30% (2023-2032) |
E Sports Market Highlights:
ESports Market Overview
ESports Market Size was valued at USD 1,135.3 Million in 2022. The E-Sports market industry is projected to grow from USD 1,307.3 Million in 2023 to USD 7,191.6 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 20.9% during the forecast period (2023 - 2032).
The E-Sports Market is growing due to the increasing popularity of video games, increasing awareness of E-sports, and increasing smartphone penetration, which are overall driving the market growth. One of the main reasons why E-sports viewership is increasing is that more people are still learning about E-sports. Since 2015, the popularity of the E-sports industry has increased significantly. At the time, there were just over 800,000 people who had heard of it. These numbers quickly changed, and by 2023, over 1 billion people had learned about E-Sports.
The E-sports industry has experienced tremendous growth over the years, both in terms of viewership and revenue. Viewership growth is the main driver of revenue, and not just because viewers generate revenue but sponsorships, media rights also generate significant amount of revenue. Brands are investing in E-sports marketing, both directly and indirectly, recognizing the potential to reach large and engaged audiences.
This has contributed to the industry's rapid growth. Other key drivers of E-sports viewership growth include the launch of popular new E-sports franchises such as Valorant, Mobile Legends, Bang and League of Legends and Wild Rift. Some brands have recognized the potential of entering the E-sports market and are already investing heavily in E-sports marketing. The industry has recorded impressive sales growth in recent years.
FIGURE 1: E-SPORTS MARKET SIZE 2022-2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
E-Sports Market Trends
-
GROWING AWARENESS ABOUT E-SPORTS
Awareness about E-Sports attracts more viewers to watch competitive gaming events. As the audience grows, E-Sports tournaments gain higher viewership numbers, both online and through traditional broadcasting channels. This increased viewership contributes to industry’s overall popularity and marketability. As awareness about E-Sports rises, more sponsors and advertisers recognize the potential of reaching a large and engaged audience. This increased interest from sponsors provides additional financial support for E-Sports organizations, events and players contributing to industry’s financial growth.
Growing awareness prompts mainstream media outlets to cover E-Sports events, competition and news. Increase media coverage helps legitimize E-Sports as a mainstream form of entertainment, reaching audience beyond gaming community. High profile E-Sports tournament and events like The International (Dota2), League of Legends World championships and the Overwatch League attract a large audience and garner attention to both gamers and non-gamers. These events are often held in large arenas and broadcasted globally, bringing E-Sports into mainstream. E-Sports has become a prominent feature in major gaming conventions and expos, such as E3 and Gamescom. The inclusion of E-Sports in these gatherings attracts attention from both the gaming industry and general public.
A high level of awareness foster stronger engagement within the gaming community. This engagement includes discussion fan events and social media interactions, creating a sense of community that help sustain and growth E-Sports ecosystem. Growing awareness contributes to the cultural recognition of E-Sports. It becomes a topic of discussion in broader cultural conversation, and E-Sports personalities gain recognition outside of the gaming community, contributing to the normalization of E-Sports in the society. With increased awareness, government and institution may become more supportive of E-Sports. This can lead to recognition of E-Sports as a legitimate sports, potentially resulting in regulatory support, infrastructure development and official recognition at national and international levels. Increased awareness helps E-Sports organizations tap into new markets and demographics. As more people become more aware of E-Sports the industry can reach a more diverse audience, including those who may not have been exposed to competitive gaming before.
E-Sports Market Platform Segment Insights
E-Sports Revenue Stream Insights
Based on Revenue Stream, the E-Sports Market segmentation includes Sponsorship, Media Rights, Merchandise and Tickets, Publisher Fees, Digital Platforms, and Streaming. The Sponsorship will be the majority share in 2022, contributing around 55% to the market revenue. This dominance arises from lucrative partnerships and endorsements with brands seeking to align themselves with the rapidly growing and influential E-Sports industry. Sponsors recognize the immense viewership and engagement associated with E-Sports events, making it a prime platform for brand visibility and marketing. As a result, the substantial financial backing from sponsorships solidifies its position as the leading revenue stream in the current E-Sports landscape.
FIGURE 2: E-SPORTS MARKET, BY REVENUE STREAM, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
E-Sports Genres Insights
Based on the Genres, the E-Sports Market segmentation is Player Vs Player (PVP), First Person Shooter, Sports Games, Real-Time Strategy, Multiplayer Online Battle Arena, and Fighting. Multiplayer Online Battle Arena dominated the market in 2022. This genre's widespread popularity is fuelled by the success of games like Dota 2 and League of Legends, which attract massive player bases and viewership. The strategic depth and team-based competitive nature of MOBA games make them compelling for both players and spectators. As a result, the genre's prominence contributes to its leading position, shaping the landscape of the E-Sports market in 2022.
E-Sports Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The Asia-Pacific E-Sports market accounted for ~40% in 2022. This strong presence is driven by a fervent gaming culture, a large and engaged audience, and a surge in competitive gaming events across the region. Asia-Pacific's influence underscores its status as a key hub for E-Sports growth and innovation.
In the same period, North America plays a significant role in the global E-Sports landscape. With a mature gaming industry, widespread popularity of E-Sports leagues, and substantial investments in competitive gaming infrastructure, North America contributes substantially to the overall market. The region's E-Sports market reflects a dynamic mix of established leagues, passionate communities, and robust business engagement.
Similarly, Europe remains a pivotal player in the E-Sports Market in 2022. The region boasts a strong E-Sports ecosystem, driven by a passionate fan base, organized tournaments, and supportive infrastructure. Europe's influence contributes to the global growth of E-Sports, reflecting a combination of competitive gaming excellence and widespread community participation.
FIGURE 3: E-SPORTS MARKET SIZE, BY REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
E-Sports Key Market Players & Competitive Insights
The E-Sports Market is characterized by the presence of many global, regional, and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on reliability, cost, product quality, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. According to MRFR analysis, the growth of the E-Sports Market is dependent on market conditions. The key vendors in the market are Gameloft, Activision Blizzard, Nintendo, Electronics Arts, Tencent Holdings Limited, EPIC Games, Capcom Co. Ltd, Kabam, Modern Times Group, Valve Corporation, CJ Corporation, GFNITY, Take-Two Interactive, Huya and Nazara Technologies.
Key Companies in the E-Sports market include
- Gameloft
- Activision Blizzard
- Nintendo
- Electronics Arts
- Tencent Holdings Limited
- EPIC Games
- Capcom Co. Ltd
- Kabam
- Modern Times Group
- Valve Corporation
- CJ Corporation
- GFNITY
- Take-Two Interactive
- Huya
- Nazara Technologies
E-Sports Industry Developments
- In January 2024, E-sports tournament organiser BLAST has expanded and renewed its partnership with Epic Games, allowing the company to continue producing the Fortnite Championship Series (FNCS) and start producing the Rocket League Championship Series (RLCS).
- In October 2023, Microsoft, the parent company of Xbox, has acquisition of Activision Blizzard, the developer and publisher behind video game franchises like Diablo, Overwatch, Candy Crush, and Call of Duty.
- In September 2023, EA Sports FC unveils new E-sports ecosystem. EA Sports FC is the new rebranded version of the FIFA video game franchise, following the termination of the long-standing partnership between EA Sports and football governing body FIFA.
E-Sports Market Segmentation
E-Sports Revenue Stream Outlook
- Sponsorship
- Media Rights
- Merchandise and Tickets
- Publisher Fees
- Digital Platforms
- Streaming
E-Sports Genres Outlook
- Player VS Player (PVP)
- First Person Shooter
- Sports Games
- Real-Time Strategy
- Multiplayer Online Battle Arena
- Fighting
E-Sports Regional Outlook
-
North America
- US
- Canada
- Mexico
-
Europe
- Germany
- France
- UK
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
-
Rest of the World
- Middle East & Africa
- South America
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