Esports Market Size - By Streaming Type (Live, Video-on-Demand), By Revenue Streaming (Sponsorship, Advertising, Merchandise & Tickets, Publisher Fees, Media Rights), By Gaming Genre & Forecast, 2024 - 2032

Esports Market Size - By Streaming Type (Live, Video-on-Demand), By Revenue Streaming (Sponsorship, Advertising, Merchandise & Tickets, Publisher Fees, Media Rights), By Gaming Genre & Forecast, 2024 - 2032

Esports Market Size

Esports Market size was valued at USD 2 billion in 2023 and is expected to grow at a CAGR of over 15% between 2024 and 2032. Growing interest in video games across a range of groups is the driving force behind the increasing popularity and viewership of esports. Millions of people watch esports events and tournaments live online and on television, making them enormous spectacles.

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For instance, in March 2022, the esports sector began diversifying its revenue streams beyond traditional advertising and sponsorships. Pay-per-view events, premium subscription services, and direct-to-consumer sales of exclusive content are examples of new revenue streams that are beginning to emerge. Additionally, the importance of in-game purchases and virtual goods sales linked to esports teams and competitions as revenue sources is rising. These additional revenue streams are providing esports organizations and the industry with more financial security and growth prospects.

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Increased media exposure has been essential in the legitimation and popularity of esports. Esports competitions are now televised by large media companies and traditional sports networks, giving them previously unreachable mainstream visibility. This has drawn new audiences who may not have been previously aware of the sector. Furthermore, comprehensive coverage that includes player biographies, behind-the-scenes videos, and analytical shows has improved the viewing experience and increased the accessibility and interest level of esports. This media coverage has also drawn large sponsorship deals and advertising income, which has accelerated the expansion of the sector.

In the esports industry, sustainability and profitability present major obstacles. Even with the flood of sponsorships and funding, many esports’ organizations fail to turn a profit on a regular basis. High running costs might exceed sponsorship, advertising, and item sales revenue. These costs include player salaries, event production, marketing, and infrastructure upkeep.

Furthermore, revenue streams are frequently erratic and highly dependent on the ephemeral popularity of games or events. The financial strain is increased by the need to constantly innovate and maintain audience engagement. Creating more dependable and varied revenue streams, such as direct-to-consumer sales, subscription services, and increased media rights agreements, is necessary to ensure long-term sustainability.

Esports Market Trends

The ongoing development of the esports fan base is one of the major growth trends in the industry. More people are turning to esports events because of developments in streaming technology and the growing popularity of websites like Twitch, YouTube Gaming, and Facebook Gaming. Since these platforms are widely accessible on a variety of devices, esports enthusiasts may interact with material from around the globe. In addition, a wider range of demographics are becoming interested in esports, including women and older age groups. This diversifies the audience and boosts overall esports market growth.

The esports business has seen a noticeable increase in sponsorship and investment. Through collaborations and sponsorship agreements, major businesses from a variety of industries, including technology, automotive, and apparel, are making significant financial investments in esports. Celebrities and traditional sports teams are also making financial investments in esports organizations to support the sector and give it more legitimacy. These expenditures promote player development, facility improvement, and large-scale event planning, all of which draw more spectators and increase income.

The esports business has seen a noticeable increase in sponsorship and investment. Through collaborations and sponsorship agreements, major businesses from a variety of industries, including technology, automotive, and apparel, are making significant financial investments in esports. Celebrities and traditional sports teams are also making financial investments in esports organizations to support the sector and give it more legitimacy. These expenditures promote player development, facility improvement, and large-scale event planning, all of which draw more spectators and increase income.

The esports market is expanding its sources of income beyond conventional ones like sponsorships and advertising. New revenue streams are starting to appear, such as pay-per-view events, premium subscription services, and direct-to-consumer offerings of unique content. In addition, virtual goods sales and in-game purchases associated with esports teams and tournaments are growing in importance as a source of income. More financial stability and expansion opportunities are being offered to esports organizations and the industry at large by these new revenue streams.

Esports Market Analysis

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Based on revenue streaming, the market is divided into sponsorship, advertising, merchandise & tickets, publisher fees, media rights, and others. The media-rights segment is expected to register a CAGR of 20% during the forecast period.

• One of the most important sources of income for the esports sector is the media rights segment, which involves selling broadcasting rights to different platforms that show esports content to a worldwide audience. These platforms include conventional television networks as well as streaming sites like Huya, YouTube Gaming, and Twitch.
• Given the strong demand for esports material, media rights agreements can entail significant financial outlays. To optimize revenue and viewership, regional distribution agreements, multi-year partnerships, and exclusive broadcasting arrangements are frequently used. In addition to giving esports organizations and tournament organizers a sizable income, the media rights market is essential to esports' growth and awareness.
• High-quality production, diverse content offerings, and strategic partnerships ensure that esports content is accessible and appealing to a wide audience, contributing to the overall growth and popularity of the industry.

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Based on enterprise size, the esports market is divided into live & video-on-demand. The live segment is expected to generate a revenue of over USD 6 billion in 2023.

• The live component of the esports business includes both in-person and online experiences. Stadiums and esports arenas are packed with spectators during major leagues and tournaments.
• Tens of thousands of people attend events like The International, League of Legends World Championship, and Fortnite World Cup, which create a lively atmosphere and a communal experience that goes beyond simply watching the games.
• The revenue generated by ticket sales, merchandise sales, and on-site sponsorships during live events can be substantial. Features that encourage fan contact, such as player meet-and-greets, fan zones, and interactive exhibitions, also help the live portion. They enhance the whole experience and assist spectators in forging closer ties with the esports community.

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North America dominated the global esports market in 2023, accounting for a share of over 35%. Both endemic and non-endemic businesses make significant investments in the region because of its huge fan base and robust infrastructure. Numerous esports competitions and events are held in major cities including Los Angeles, New York, and Toronto, attracting sizable crowds both in person and virtually.

Some of the most well-known esports leagues and organizations, like the North American League of Legends Championship Series (NA LCS), Call of Duty League, and Overwatch League, are based in North America. High levels of media attention, sponsorship agreements, and a big concentration of gaming software and hardware businesses all benefit this region.

A robust ecosystem of professional leagues, teams, and competitions makes the United States a prominent power in the esports market. Huge esports competitions are held in major cities like Los Angeles and New York, drawing millions of spectators to the events both online and offline. Streaming services, game technology businesses, and sponsorship opportunities all contribute to the strength of the U.S. market.

Growth and professionalization of the esports industry in the United States are facilitated by the enormous funding available to esports organizations from internet titans, media conglomerates, and traditional sports corporations. Encouraging innovation and drawing in international talent and competitions are the benefits of reasonably favorable regulatory frameworks.

Japan combines a thriving competitive gaming scene with its rich gaming culture to create a unique position in the esports market. Esports competitions in Japan attract ardent spectators who have a strong interest in anime and video games. The major players in the nation's gaming market, such Nintendo, Sony, and Capcom, are essential in fostering esports through sponsorship and game creation.

Tokyo is a center for gaming innovation and technology, and it holds significant esports events. Japan's esports sector is growing despite legislative obstacles and a somewhat conservative attitude toward esports in comparison to other regions. This growth is being driven by a devoted fan base and growing awareness from mainstream media.

World-class players and teams have been produced in South Korea, which is known for being a global leader in esports with a deeply embedded esports culture. Esports have a solid basis on account of the nation's robust internet infrastructure development and popular game acceptance. World-renowned esports events like the League of Legends World Championship and the Overwatch League finals are held in Seoul, the country's capital, and draw large crowds every time. Telecommunications businesses and tech heavyweights are key partners for South Korean esports groups, providing sponsorships, endorsements, and partnerships.

For instance, in June 2024, In South Korea, the mobile game market is expanding, and even the elderly are participating. Video games have a significant cultural influence in Korea. In Korea, League of Legends, PlayerUnknown's Battlegrounds, and World of Warcraft are the most popular esports.

China's enormous gaming population and favorable regulatory landscape have made it a dominant force in the esports world. Millions of people watch Chinese esports leagues and events, which also bring in a sizable sum of money from sponsorships, broadcast rights, and product sales.

International esports competitions are held in cities like Shanghai and Beijing, demonstrating China's advanced technology and infrastructure. Esports is a major source of investment for major Chinese digital corporations like Tencent and Alibaba, who own teams, streaming services, and esports-related content. China's esports sector is booming due to rising consumer expenditure on digital entertainment and a burgeoning middle class, despite legal obstacles and periodic crackdowns on gaming.

Esports Market Share

Tencent Holding Limited and Activision Publishing, Inc. held a significant share of over 10% in the esports industry in 2023. One of the most significant esports producers is Riot Games (owned by Tencent Holding Limited), best known for League of Legends, whose yearly World Championship draws millions of spectators from across the globe. Due to Tencent's involvement in Riot Games, the game's success has been used to grow esports leagues and tournaments, including regional leagues such as the League of Legends Championship Series (LCS) in North America and the League of Legends Pro League (LPL) in China.

In addition to Riot Games, Tencent has substantial stakes in other esports-related businesses, like Epic Games (Fortnite) and Supercell (known for Clash Royale), which enhances its position in the industry. Tencent's extensive portfolio and strategic investments in esports not only bolster its market presence but also contribute to the growth and globalization of esports as a mainstream entertainment phenomenon.

Another significant participant in the esports market is Activision Publishing, Inc., a division of Activision Blizzard, Inc., mostly because of its ownership of Blizzard Entertainment. Well-known for its popular esports’ games, Blizzard Entertainment is the developer of Overwatch, Hearthstone, and StarCraft II. Due to these games, thriving esports ecosystems have grown, complete with specialized leagues and competitions that draw elite players and large crowds of spectators.

The Overwatch League (OWL), the premier esports league from Activision Blizzard, has redefined professional gaming with its large media presence, city-based teams, and rich sponsorship deals. Activision Blizzard's strategy for esports is centered on building long-lasting competitive settings that encourage player growth and spectator interaction. The company's dedication to influencing the direction of competitive gaming is demonstrated by the thorough integration of esports into its game development strategy and strong franchising models.

Esports Market Companies

Major players operating in the esports industry are

• Tencent Holding Limited
• Activision Publishing, Inc.
• Riot Games, Inc.
• Valve Corporation
• Twitch Interactive, Inc.
• Intel Corporation
• NVIDIA Corporation

Esports Industry News

• In January 2022, NVIDIA Reflex provides low latency for seven new titles and a new class of 1440p NVIDIA G-SYNC esports screens. The NVIDIA Reflex low latency ecosystem has expanded dramatically because of the growing recognition among players and developers of the need of lowering system latency for a high-quality gaming experience. Reflex is supported by eight of the top 10 competitive shooters, including Fortnite, Apex Legends, and Valorant. Over 20 million GeForce players battle with Reflex ON every month. Players can rapidly evaluate system latency due to Reflex Analyzer's compatibility with over 50 mice and screens. The esports market is anticipated to grow during the projected period because of these developments.  
• In February 2022, by applying machine learning and predictive analytics, financial institutions were able to enhance KYC automation, identify odd patterns in particular customers, and anticipate instances of fraudulent transactions and sensitive data theft. By helping to avoid crime and other problems, identity analytics provides benefits to enterprises.

The esports market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2032, for the following segments

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Market, By Streaming Type

• Live
• Video-on-demand

Market, By Revenue Streaming

• Sponsorship
• Advertising
• Merchandise & tickets
• Publisher fees
• Media rights
• Others

Market, By Gaming Genre

• Real-time strategy games
• First person shooter games
• Fighting games
• Multiplayer online battle arena games
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA