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The esports market is estimated to grow at a CAGR of 21.81% between 2022 and 2027. The size of the market is forecast to increase by USD 3,515.1 million. The growth of the market depends on several factors, including branding through Esports, the rising number of Esports events, and the new platform launches.
This report extensively covers market segmentation by revenue stream (sponsorships, media rights, advertising, publisher fees, and merchandise and ticket sales), genre (MOBA, FPS, RTS, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global e-sports market as a part of the global interactive home entertainment market within the global media and entertainment market. The parent global interactive home entertainment market covers companies offering products, services, and solutions in advertising, broadcasting, cable and satellite, publishing, movies and entertainment, interactive home entertainment, and interactive media and services. The global interactive home entertainment market covers companies engaged in producing interactive gaming products, including mobile gaming applications. It also includes educational software used primarily in the home. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Branding through esports is notably driving the market growth, although factors such as the growing cost of game development may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Esports Market Driver
Branding through e-sports is one of the driving factors impacting the global e-sports market growth. Sponsoring an e-sports event is one of the successful branding techniques. Firms from different sectors are offering sponsorship for e-sports to promote either a single product or a complete brand. Successful brand promotion can provide new revenue opportunities for e-sports events and, in turn, drive the global e-sports market.
HTC Corp, Twitch, Intel, Adidas AG, Vodafone Plc, The Coca-Cola Co., and Mercedes-Benz (a subsidiary of Daimler AG) are some of the top sponsors of e-sports events. Some of the recent sponsorships made by corporates for e-sports events are mentioned below: In May 2021, Over Active Media, the parent company of MAD Lions, Toronto Ultra, and Toronto Defiant, entered into a multi-year partnership with the Red Bull Gaming Studio.
Significant Esports Market Trend
An increase in e-sports betting is the key trend driving the global e-sports market growth. 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.
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.
Major Esports Market Challenge
The growing cost of game development will be a major challenge that negatively impacts the global e-sports 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 $500 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.
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.
Key Esports Market Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Esports Market Customer Landscape
Vendors 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.
amazon.com - The company offers e-sports online gaming to compete against each other in tournaments for a cash prize.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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.
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The sponsorships segment was valued at USD 383.05 million in 2017 and continue to grow by 2021. 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.
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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 e-sports market in APAC increased in 2020, despite being the epicenter of COVID-19, and witnessed strong growth in 2021. However, in 2021, with the initiation of large-scale vaccination drives, schools and colleges reopened. Such factors may result in slower growth for the adoption of video games, along with the demand for e-sports in the region, slowing down the regional market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Revenue Stream (Sponsorships, Media rights, Advertising, Publisher fees, and Merchandise and ticket sales), Genre (MOBA, FPS, RTS, and Others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
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Esports Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.81% |
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Market growth 2023-2027 |
USD 3,515.1 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
20.28 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, Canada, China, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Activision Blizzard Inc., Amazon.com Inc., Beyond the Summit, Caffeine, Electronic Arts Inc., Gfinity Plc, Harena Data Inc., Hi-Rez Studios Inc., Intergalactic Gaming Ltd., Kabam Games Inc., Modern Times Group MTG AB, Nintendo Co. Ltd., Riot Games Inc., Rovio Entertainment Corp., TaKeTV GmbH, Tencent Holdings Ltd., Valve Corp., Wargaming Group Ltd., Zynga Inc., and Starladder Ltd. |
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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 forecast period. |
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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. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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