esports Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.11 Billion |
| Market Size (2029) | USD 5.27 Billion |
| CAGR (2024 - 2029) | 20.05 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
esports Market Analysis
The eSports Market size is estimated at USD 2.11 billion in 2024, and is expected to reach USD 5.27 billion by 2029, growing at a CAGR of 20.05% during the forecast period (2024-2029).
Millions of people worldwide are increasingly interested in competitive video gaming, which offers millions of dollars in prize money. It is no longer uncommon for casual gamers to command seven-figure wages, receive significant business endorsements from streaming services, and appear at live events. Although the eSports market is still in its initial stage, and with the growing viewership, it is expected that it may offer strong potential to capitalize on the market in the future.
- The market growth factors are an increase in the live streaming of games, significant investments, growing audience reach, engagement activities, and infrastructure for league competitions. The market benefits from the lucrative prospects made possible by the industry's increasing professionalization for influencers, gamers, event planners, and game developers.
- The majority of the audience and the players of eSports are the Millenials. Thus, the publishers of eSports are targetting this customer base by personalizing the gameplay experience and offering the game on different platforms such as console, PC, and mobile. For instance, as of April 2018, the Fortnite game generated USD 296 million in revenue across platforms, which was more annual than any significant console or PC game. Thus, with the new gamers in the ecosystem, it is expected to attract more eSports audiences, generating more revenue over time.
- Moreover, organizations are emerging for governance to make the entire sports organized. For instance, associations such as the World esports Association (WESA) and Esports Integrity Coalition are working with esports stakeholders to protect the integrity of competition and investigate all forms of cheating, including match manipulation. Hence, this is expected to have a positive outlook on the market and is expected to complement the growth of the market.
- However, on the flip, lack of supportive infrastructure and awareness about sports are a few factors hindering market growth during the forecast period.
- The COVID-19 pandemic impacted many aspects of human life and numerous business sectors. Due to COVID-19, numerous leagues and tournaments were rescheduled or abandoned. As the stadiums were closed, some organizers held the event online. In COVID-19, 8% of live events were postponed, 53% were shifted to virtual platforms, 26% were rescheduled, and 13% were held as planned. Under all of these conditions, the market increased somewhat in 2020.
esports Market Trends
This section covers the major market trends shaping the eSports Market according to our research experts:
Advertising to be the Largest Sources of eSports Revenue
- The advertising comprises the revenue generated from the advertisements targeting esports viewers, including ads shown during live streams on online platforms, on video-on-demand content of esports matches, or esports TV.
- The top video games globally now include Dota2, Fortnite, League of Legends, Counter-Strike: Overwatch, and Global Offensive. The video game industry has developed from a pastime to a viable job path. Due to the huge amount of interest in esports competitions among spectators, investors, including celebrities and global brands, are becoming sponsors.
- The number of viewers and fans has grown steadily over the past few years, opening up new growth opportunities and increasing investment. Investments in this area have advanced significantly in recent years thanks to the ecosystem, which offers a variety of investment opportunities across several subsectors. The key market draw is traditional venture capital firms, strategic investors, and private equity.
- The esports degree program is offered by Ohio State University, Becker College in Massachusetts, and Shenandoah University in Virginia. Additionally, esports competitions and other games like conventional soccer are being held in more than 100 high schools around the United States. The University of California Irvine offers scholarships to the top 6 players, as are several other institutions, to boost the program's expansion.
- Hence, all the above factors are expected to contribute to the advertising segment for generating revenue for the eSports market in the forecasted period.
Asia-Pacific is expected to dominate the Market
- In the Asian-pacific region, China is anticipated to hold a significant market share in the eSports market owing to the popularity of esports among the youth and supportive government support for the market's growth.
- For instance, Hangzhou ( a city in China) could plan to build 14 esports facilities before 2022, and it is expected to invest up to CNY 15.45 billion (USD 2.22 billion). This investment is expected to make it the esports capital of the world.
- Moreover, Hangzhou will host Asian Games in 2022, where esports is expected to be an official medal event. With its investments, China is expected to hold a significant market share.
- Furthermore, Tencent Holdings Limited, a significant player in the eSports industry, is headquartered in China and played an influential role in the increase of eSports in China by developing games like "Honor of Kings," which was a huge success. Tencent Holdings Limited plans to expand tournaments for hugely popular games like "League of Legends" and "Honor of Kings in China, " which will attract global players and viewers.
- The prize pool for the 2022 Honor of Kings World Champion Cup (KCC) will be USD 10 million (EUR 8.2 million), according to Allan Zhang, general manager of Tencent TiMi Esports Center, who announced during the Tencent Global Esports Summit. Zhang explained that 16 teams from the King Pro League (KPL) in China and other international locations would participate in the competition after 2022.
- The competition will set a new record for the largest prize pool in mobile esports, which is a significant development for the industry. The honor of Kings and its developer Tencent's TiMi Studio have made their intentions for esports clear as one of the most lucrative games globally.
- Hence, the increasing investment in eSports in the country is expected to augment the China market.
esports Industry Overview
The eSports market is at its initial stage; thus, it is a little competitive. Although seeing the popularity of the eSports leagues, companies are entering the market to gain a competitive advantage and expand their geographical presence. Furthermore, these companies' strategies to increase their visibility across different geographic locations include organizing new sports leagues, partnerships, mergers, and acquisitions. Some significant players are Modern Times Group, Activision Blizzard Inc., and Riot Games Inc. (Tencent Holdings Ltd), amongst others. A few recent developments are:
- April 2022 - SK Telecom and the Korean Esports Association (KeSPA) have a three-year sponsorship agreement. As a result of the arrangement, SK Telecom is now KeSPA's official sponsor and may coach the Korean esports team for forthcoming Asian tournaments. During the anticipated term, several market-related efforts and innovations are expected to fuel additional growth.
- March 2022 - Rooter Sports Technologies Private Limited purchased Sky Esports' media rights for all of its intellectual property for a year. The top esports event organizer in South Asia, Sky Esports, owns its intellectual properties. With media rights, Rooter Sports may broadcast matches in India in several languages, including English, Hindi, Bengali, Kannada, Tamil, Malayalam, and Telugu. These M&A operations are anticipated to boost the media rights segment's expansion during the expected term.
esports Market Leaders
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Modern Times Group
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Activision Blizzard, Inc
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Riot Games, Inc. ( Tencent Holdings Ltd)
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Epic Games, Inc.
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Gfinity, PLC
*Disclaimer: Major Players sorted in no particular order
esports Market News
- January 2022 - A new category of 1440p NVIDIA G-SYNC esports screens and seven new games benefit from low latency thanks to NVIDIA Reflex. Since reducing system latency is recognized by gamers and game developers as essential to a quality gaming experience, the NVIDIA Reflex low latency ecosystem has grown significantly over the past year. Eight top-ten competitive shooters, including Apex Legends, Valorant, and Fortnite, support Reflex. Each month, more than 20 million GeForce gamers battle with Reflex ON. More than 50 mouse and screens support their Reflex Analyzer, enabling players to assess system latency quickly. Such developments are expected to flourish the esports market in the forecast period.
- February 2022 - Nintendo delivered its first Direct event of 2022 in a 40-minute presentation that featured several brand-new games and remakes. Highlights from Nintendo Direct 2022: Switch Sports, Mario Strikers, and announcements of other games. The market is expected to expand due to the release of multiple games.
esports Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables and Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Popularity of Video Games
4.3.2 Growing Awareness about eSports
4.4 Market Restraints
4.4.1 Issues Such as Piracy, Laws and Regulations, and Concerns Relating to Fraud During Gaming Transactions
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5. ESPORTS MARKET LANDSCAPE
5.1 Esports Engagement by Country
5.2 Top 10 Games Played by eSports Fans
5.3 Top 10 Leagues, By Viewership, By Prize Money
6. MARKET SEGMENTATION
6.1 By Revenue Model
6.1.1 Media Rights
6.1.2 Advertising and Sponsorships
6.1.3 Merchandise and Tickets
6.1.4 Other Revenue Models
6.2 By Streaming Platform
6.2.1 Twitch
6.2.2 YouTube
6.2.3 Other Streaming Platforms ( DouYu and Hayu )
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.1.3 Rest of North America
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 China
6.3.4 Asia-Pacific ( excluding China)
6.3.4.1 Japan
6.3.4.2 India
6.3.4.3 South Korea
6.3.4.4 Rest of Asia-Pacific
6.3.5 Latin America
6.3.6 Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Modern Times Group
7.1.2 Activision Blizzard Inc
7.1.3 Electronic Arts Inc
7.1.4 Riot Games Inc. ( Tencent Holdings Ltd)
7.1.5 Epic Games Inc.
7.1.6 Gfinity PLC
7.1.7 Faceit
7.1.8 Capcom Co. Ltd
7.1.9 Valve Corporation
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. INVESTMENT ANALYSIS
esports Industry Segmentation
ESports or electronic sports is a form of competition that is played using video games. This report gives a detailed analysis of the ecosystem of the eSports industry. Furthermore, it also contains the value chain analysis for the esports industry.
The eSports market is segmented by revenue model (media rights, advertising, sponsorship, merchandise, and tickets), streaming platform ( Twitch, and YouTube), and geography.
| By Revenue Model | |
| Media Rights | |
| Advertising and Sponsorships | |
| Merchandise and Tickets | |
| Other Revenue Models |
| By Streaming Platform | |
| Twitch | |
| YouTube | |
| Other Streaming Platforms ( DouYu and Hayu ) |
| By Geography | ||||||
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| China | ||||||
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| Latin America | ||||||
| Middle East & Africa |
esports Market Research FAQs
How big is the eSports Market?
The eSports Market size is expected to reach USD 2.11 billion in 2024 and grow at a CAGR of 20.05% to reach USD 5.27 billion by 2029.
What is the current eSports Market size?
In 2024, the eSports Market size is expected to reach USD 2.11 billion.
Who are the key players in eSports Market?
Modern Times Group, Activision Blizzard, Inc, Riot Games, Inc. ( Tencent Holdings Ltd), Epic Games, Inc. and Gfinity, PLC are the major companies operating in the eSports Market.
Which is the fastest growing region in eSports Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in eSports Market?
In 2024, the Asia Pacific accounts for the largest market share in eSports Market.
What years does this eSports Market cover, and what was the market size in 2023?
In 2023, the eSports Market size was estimated at USD 1.76 billion. The report covers the eSports Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the eSports Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the growth of the Esports Market?
Key factors that are driving the growth of Esports Industry include: a) Rising popularity of video games b) Growing youth population c) Advancements in gaming technology d) Increasing investment in esports infrastructure and prize pools
esports Industry Report
The global esports market is witnessing remarkable esport growth, fueled by the increasing popularity of video gaming, professionalization, and the esports trend of live streaming. This surge is supported by significant investments, expanding audience reach, and the diversification of revenue streams such as media rights, sponsorships, and advertising, primarily driven by rising online viewership. The industry's appeal is broadening, attracting not only millennials viewing esports as a viable career due to substantial prize pools and streaming revenues but also academic institutions offering dedicated esports programs. With genres like first-person shooters and multiplayer online battle arenas leading the charge, regions like North America and the Asia Pacific, particularly China, are experiencing rapid market expansion. Despite concerns over health and addiction, technological advancements are making esports more accessible and enhancing viewer experiences, promising a bright future for the industry as a significant entertainment and professional domain. For detailed statistics on esports market share, size, and revenue growth, Mordor Intelligenceā¢ provides comprehensive industry reports with forecasts and historical overviews, available for free PDF download.
