Enjoy complimentary customisation on priority with our Enterprise License!
The Esports Market size is forecast to increase by USD 3.47 billion, at a CAGR of 20.5% between 2023 and 2028. The accelerated growth of the market is driven by several factors, including the increase in branding through e-sports, the rising number of e-sports events, and the launch of new platforms for e-sports. Companies are increasingly leveraging e-sports for branding opportunities, reaching a vast and engaged audience through sponsorships, advertisements, and partnerships within the gaming community. The growing number of e-sports events, from local tournaments to international championships, further boosts market expansion by attracting more participants, spectators, and sponsors. Additionally, the launch of new platforms dedicated to e-sports enhances accessibility and engagement, providing players and fans with more venues to participate, watch, and interact. These platforms also facilitate the growth of online communities and provide new revenue streams for stakeholders. Collectively, these factors drive the rapid expansion of the e-sports market, making it a dynamic and lucrative industry with widespread appeal and significant growth potential. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
For More Highlights About this market report, Download Free Sample in a Minute
The market is driven by the surge in live streaming, attracting a massive viewership and driving ticket sales. Increasing demand for immersive engagement activities has led to substantial gaming investments in league tournament infrastructure and streaming platforms. Challenges include ensuring integrity with the Esports Integrity Coalition amid the rising influence of influencers and event organizers. Trends show a strong revenue model through advertising and popular games like Fortnite, League of Legends, and Overwatch catering to a diverse Millennials audience.
An increase in branding through e-sports is the key factor driving the market growth. Sponsoring esports events is a popular branding technique across various sectors, driving both brand promotion and the global esports market. Key sponsors include HTC Corp, Twitch, Intel, Adidas AG, Vodafone Plc, The Coca-Cola Co., and Mercedes-Benz.
Additionally, notable recent sponsorships include OverActive Media partnering with Red Bull Gaming Studio in May 2021, Olympique de Marseille teaming up with Grizi Esport in 2020, Giants Gaming securing a deal with Burger King in March 2022, ESL Gaming GmbH collaborating with Spotify in September 2022 for exclusive content for Thus, such partnerships enhance revenue opportunities for esports events and promote products or brands effectively, fueling the growth of the market.
An increase in e-sports betting is the primary trend shaping the market. E-sports betting is trending in the global e-sports market, which is diminishing the disparity between e-sports events and traditional sports events. Betting in e-sports is projected to witness significant growth during the forecast period, particularly in the US, owing to lenient laws on betting in the country, which allows states to opt for legal betting in some of the sports along with e-sports. Moreover, the ease of online transactions also propelled betting companies to participate in e-sports events using mobile applications.
Moreover, Betway Group and GG.BET is two of the prominent betting companies that also sponsor e-sports teams in several events. Rapid growth in the viewership of e-sports has attracted betting companies to target e-sports events to expand their betting business. Betting operators are expected to enhance their presence in e-sports team sponsorships and introduce multiple forms of betting. The total e-sports betting value is attributed to overtaking the revenue generated by the sales of tickets and merchandise of e-sports events. All these factors are expected to increase e-sports betting during the forecast period.
The growing cost of game development is the major challenge that affects market growth. The consumer demand for various quality enhancements and innovations in-game content has increased the cost of game development. Owing to these requirements, game budgets reached USD500 million in 2018. Currently, most of the game content is complex with respect to characters, items, levels, and visual effects. Such intricacy caters to the needs of modern gamers. As a result, developers need to hire specialized artists for art designing in games, further augmenting production costs.
Moreover, owing to the intense competition in the market, game developers are hiring Hollywood actors to voice virtual characters. This provides a superior and immersive experience to gamers, and game developers can achieve product differentiation. The increasing game development cost is resulting in the high cost for the game franchise, creating a challenge for the global e-sports market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the sponsorships segment will be significant during the forecast period. Sponsorship deals take place with e-sports event organizers, as well as with individual teams or players. With the increasing viewership of e-sports events, companies are finding e-sports sponsorship as a highly profitable investment. As half of the global e-sports audience is males aged under 35 years, companies are majorly targeting them for e-sports sponsorships.
Get a glance at the market contribution of various segments Download the PDF Sample
The sponsorships segment was valued at USD 0.66 billion in 2018. Some of the popular e-sports tournaments in terms of sponsorships are Dreamhack, Intel Extreme Masters, League of Legends World Championship, League of Legends Pro League, and ESL Pro League. Red Bull and Monster Energy, which are energy drinks companies, are among the top endemic sponsor brands for the e-sports industry. Moreover, non-endemic brands are increasingly participating in sponsoring e-sports, and they majorly include companies that are targeting the young population. Coca-Cola, Mercedes Benz, Adidas, Tinder, Geico, M and M, Volkswagen, Fortum, Mcdonald's, and Shanghai Pudong Development Bank are some of the prominent non-endemic sponsor brands. Thus, the growing participation of such brands in e-sports is likely to drive the growth of the sponsorships segment in the global e-sports market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC has always been an attractive market for the gaming industry, especially owing to the ease of entry compared with other markets. Moreover, several e-sports spectators, sponsors, and brands from Western countries are increasingly investing in the market in this region. APAC is the most promising market for e-sports and is expected to grow at a steady rate during the forecast period. Moreover, countries such as China, Japan, and South Korea are contributing the maximum to the growth of the e-sports market in the region.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
You may also interested in below market reports:
The market is rapidly expanding, driven by video games' popularity and increased user interaction. Gaming industry leaders and game publishers are capitalizing on this trend through recurring revenue models such as microtransactions and game publisher fees. High-tech gadgets and technology improvements have enhanced the gaming experience, attracting smartphone users and streaming platform viewers. Electronic sports are now recognized as a professional career choice, with electronic sports players receiving college scholarships and participating in gaming tournaments like League tournaments and Valorant competitions.
Additionally, e-sports also face challenges such as addiction concerns, health concerns including metabolic disorders and musculoskeletal injuries, and sedentary lifestyles leading to poor posture. However, dedicated programs in high schools, colleges and universities are addressing these issues by promoting balanced gaming habits and gaming skills development. Further, the industry benefits from social distancing norms and increased audience reach via streaming platforms like video-on-demand, enhancing fan engagement. Investors, including private equity and traditional ventures.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.5% |
Market Growth 2024-2028 |
USD 3.47 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.5 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Activision Blizzard Inc., Amazon.com Inc., ANT Esports, Beyond the Summit, Caffeine, Electronic Arts Inc., Gfinity Plc, Hi-Rez Studios Inc., Intergalactic Gaming Ltd., Kabam Games Inc., Modern Times Group MTG AB, Nintendo Co. Ltd., Riot Games Inc., Rovio Entertainment Corp., Starladder Ltd., Take Two Interactive Software Inc., TaKeTV GmbH, Tencent Holdings Ltd., Valve Corp., and Wargaming Group Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Revenue Stream
7 Market Segmentation by Genre
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.