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The global eSports market size was valued at USD 1.22 billion in 2021. The market is projected to grow from USD 1.44 billion in 2022 to USD 5.48 billion by 2029, exhibiting a CAGR of 21.0% during the forecast period. Based on our analysis, the global eSports market exhibited an average growth of 15.4% in 2020 as compared to 2019.
Increasing live streaming of games, notable investments, growing viewership, engagement activity, and league tournament infrastructure are the factors influencing the market growth. The market is benefiting from growing revenue opportunities from increased industry specialization for gamers, organizers, influencers, and game developers. A remarkable international prize pool and streaming revenue make electronic sports a professional career choice.
Additionally, colleges and universities have begun offering dedicated programs to develop skilled professionals.
Awareness and Availability of eSports Courses During Pandemic to Boost Market Growth
The COVID-19 outbreak has fueled user interaction with multiplayer games. Such trends supported the development of this market during the pandemic. Gaming company revenues in this market have increased during the COVID-19 pandemic as several individuals are turning to electronic sports as entertainment. Additionally, as social distancing norms have kept business and consumer activity to a minimum, gaming offers an attractive distraction for people looking for social interaction at home.
Asian gaming titans such as Nintendo and Tencent saw a rise in revenues in the first quarter of 2020 amid the COVID-19 outbreak. This trend is expected to continue to grow as several gambling companies partner with sports organizations to offer sports fans virtual tournaments.
Furthermore, many countries are providing a free, open-source eSports platform for a limited period of time and companies are announcing charity tournaments to help the public deal with the COVID-19 situation.
Thus, the factors mentioned above will propel the eSports market growth.
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Increasing Advertisements of Electronic Sports on Online Platforms to Propel Market Growth
This market has its revenue produced from the advertisements that are aimed at electronic sports viewers, including ads displayed during live streams on online platforms or electronic sports TV.
Advertising is likely to generate significant revenue in the coming years with increasing viewership on online platforms such as YouTube and Twitch.
Thus, with the growing number of streamers, advertising-related content is probable to rise, which, in turn, will aid in generating revenue for the market.
Additionally, in September 2019, the Overwatch League Grand Finals saw a 16% increase in viewership, resulting in a global AMA of 1.12 million. For instance,
Thus, an increase in advertisements is expected to propel the market share during the forecast period.
Rising Popularity of Video Games to Spur the Market Growth
Constant advances in technology across the world have forced individuals to rely on smartphones, various high-tech gadgets, and the internet. With many people interested in playing video games, providers have adopted a recurring revenue model in recent years. Additionally, video game tournaments, virtual reality products, and consumer spending on video content are experiencing tremendous growth globally due to constant technological advances.
The online gaming market is increasing due to factors such as increasing adoption of advanced gaming technologies, varying consumer entertainment preferences, and growing demand for mobile gaming. The proliferation of smartphones and better internet connectivity have led to a rapid increase in the number of players.
The increasing popularity of online video games across the world is one of the major factors boosting the growth of the market. Rise of electronic sports as a professional career due to exciting international prize pools, streaming revenue, and individual sponsorships along with increasing popularity of gaming tournaments is accelerating the growth of the market.
Furthermore, companies are focusing on enhancing their product offerings for athletes and better streaming experience for viewers. For instance,
Therefore, the rising popularity of video games is boosting the market growth.
Health and Addiction Concerns for eSports to Impede the Market Growth
Gamers may experience metabolic disorders resulting from light-emitting diode computer monitors and psychological problems related to gambling addiction and social behavior disorders.
A recent study by Zwiebel et al on the health effects of electronic sports players discovered that they are more expected to suffer musculoskeletal injuries in the back, neck, and upper extremities. In addition, spending excessive time in front of a computer monitor can cause metabolic disorders. Most of these issues arise from sedentary lifestyle and poor posture, which are common among these players.
Further, the introduction of electronic sports college scholarships is also another concern, as youngsters can now justify their overuse of games as being the next electronic sports stars, even when in reality the chances of being the one are extremely low.
Thus, the aforementioned factors are expected to hamper the market growth.
Live Segment to Dominate Due to Swift Digital Transformation
As per streaming type, the market is bifurcated into live and on-demand. Live streaming is expected to dominate the segment share during the forecast period. The growing focus on fan engagement is likely to fuel the demand for live electronic sports events. Also, the rise in smartphone users is likely to fuel the demand for live electronic sports tournaments.
Video on-demand is likely to grow rapidly during the forecast period owing to the growing demand for in-house entertainment. The number of viewers is increasing on Over the Top (OTT) platforms than live viewership as the viewers can access the game at any time. It is expected to grow the video on-demand segment for this industry.
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Media Rights Segment to Have Maximum Share Due to Increasing Viewers
Based on revenue streaming, the market is segmented into media rights, advertisement, sponsorship, ticket & merchandise, game publisher fees, and others. The media rights segment is expected to gain maximum segment share during the forecast period. As the industry is growing, more than 380 million viewers watch these games worldwide, and thus various media companies are investing in these sports.
Sponsorship, followed by advertisement, are expected to gain rapid growth during the forecast period. As the number of viewers is increasing, the sponsoring team is investing in the platform to build its brand image. Similarly, various gaming platforms include in-app advertisements to boost revenue generation.
First Person Shooter Games to be the Dominant Segment due to Vast Number of Games
Based on gaming genre, the market is classified into real-time strategy games, first person shooter games, fighting games, multiplayer online battle arena games, mass multiplayer online role-playing games, and others. The first person shooter games segment is expected to gain a dominant share during the forecast period. Various game providers are offering a vast number of first-person shooter games. The games earlier offered a realistic 3D environment.
Fighting games to showcase significant growth. Its popularity in virtual and video games is surging its demand in the market.
Multiplayer online battle arena games to gain a rapid growth rate during the forecast period owing to their competitive and lucrative genres. The growing popularity of multiplayer is expected to fuel its growth.
North America eSports Market Size, 2021 (USD Million)
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Based on geography, the market is divided into North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.
North America accounted for the highest market share in 2021. The region accounts for a significant number of online gamers that is expected to drive the industry growth. The primary organizations in the region are Activision Blizzard, Inc., Riot Games, Inc., X1 Esports and Entertainment Ltd., and others, which are financing heavily in research & development activities to obtain a competitive edge and satisfy consumer needs.
Asia Pacific is likely to witness notable growth over the forecast period. Countries including China, Japan, and India are anticipated to experience robust demand considering the rapid shift on digital platforms for entertainment through sports events. The vast opportunities for the gaming and entertainment industry in Asia Pacific have surged the demand for electronic sports.
The presence of a strong sports market across European countries is expected to surge the market opportunities for electronic sports platform providers. Many fans have a fascination with new gaming platforms. Similarly, various stakeholders are significantly investing in this market of Europe owing to the promising growing audience and higher return on investment perspective.
South America has a significant population interested in sports; hence, this is expected to fuel the business expansion opportunities. Considering the vast growth opportunities in the region, various brands and sports companies are investing in South American countries. The companies such as Cooler Master and Logitech have collaborated with the sports organizations of Argentina.
The government of Middle East & Africa is investing in sports to boost the sports industry as entertainment for people. For instance, the Government of Saudi Arabia committed to invest USD 3.3 billion in the gaming industry. Thus, the growing gaming industry is expected to boost the expansion opportunity for electronic sports in the Middle East & Africa market. Similarly, the pandemic has surged the demand for in-house entertainment that was catered through these platforms. Thus, the potential growth of these platforms in MEA grew significantly as various investors entered the market. For instance,
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Key Players Emphasize on Innovative eSports to Reinforce their Positions
The global market consists of a vibrant startup ecosystem. Over 100 startups are expected to innovate and develop sports analysis solutions for end-users. Such an ecosystem is expected to create strong competition, resulting in existing companies to continually implement and update new advancements in their product offerings. Therefore, rise in competition is expected to create more opportunities for market participants and grow the market size.
An Infographic Representation of eSports Market
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The study on the market includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the eSports market research report provides insights into the most recent industry and market trends, as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.
Value (USD billion)
By Streaming Type, Revenue Streaming, Gaming Genre, and Region
By Streaming Type
By Revenue Streaming
By Gaming Genre
The market is projected to reach USD 5.48 billion by 2029.
In 2021, the market stood at USD 1.22 billion.
The market is projected to grow at a CAGR of 21.0% in the forecast period (2022-2029).
By revenue streaming, the multiplayer online battle arena games segment is the fastest growing revenue streaming segment.
Rising popularity of video games to spur the market growth.
Twitch Interactive, Inc., Activision Blizzard, Inc., Tencent Holdings Limited, Riot Games, Inc., Gfinity plc, Loco (Stoughton Street Tech Labs Private Limited), X1 Esports and Entertainment Ltd., Caffeine, DLive Entertainment Pte. Ltd., and Sony Group Corporation are the top players in the market.
North America is expected to hold the highest market share.
By streaming type, the on-demand segment is expected to grow with the highest CAGR.
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share. Kindly refer to chapter 11 of the ToC
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