Esports Market

Market Overview:

The global esports market size reached US$ 1.4 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 4.7 Billion by 2028, exhibiting a growth rate (CAGR) of 22.1% during 2023-2028. The growing number of professional esports players, various esports scholarship programs offered by colleges, and thriving gaming industry represent some of the key factors driving the market.

Esports refers to a new form of spectator entertainment that mimics the experience of watching a professional sporting event, wherein spectators watch video gamers compete against each other. It primarily comprises teams competing against each other in tournaments for a cash prize. It is highly accessible, as users can play with people from all around the world instantly with an internet connection from the comfort of their homes. It reduces the hassle of organizing people in the same physical location as compared to traditional sports. It is primarily dominated by team-based games and provides careers to youngsters as pro gamers. It allows users to access various games from anywhere without sitting at home in front of their computers to engage in playing or watching online sports. Esports assists in improving hand-eye coordination, enhancing attention and visual acuity, and increasing basic visual processing and executive function. It also aids in developing problem-solving and strategy skills, boosting self-confidence, and upgrading player socialization. In addition, it helps students generate higher interest in science, tech, engineering, and math subjects (STEM) and learn sportsmanship through participating in organized esports. It can also boost the strategic thinking, teamwork, communication, leadership, and performance skills of children. Moreover, it improves mental and physical dexterity by syncing the mind with maneuvers and controllers. As it reduces anxiety and offers calmness, the demand for esports is increasing around the world.

Esports Market Trends:

At present, there is a rise in the demand for esports due to the growing live streaming of games, investments, audience reach, and engagement activities across the globe. This, along with the thriving gaming industry, represents one of the key factors supporting the growth of the market. In addition, various profitable opportunities created by increasing professionalization in the industry for influencers, gamers, event organizers, and game developers are impelling the growth of the market. Besides this, millennials consider esports a professional career option due to the rising popularity of gaming tournaments, streaming revenues, and impressive international prize pools. They are also engaged with esports, as colleges and universities are providing dedicated esports programs and scholarships to develop skilled professionals. These scholarships are usually offered to those students who excel in esports, such as playing a specific game or competing in an esports tournament. In line with this, these scholarships offer students the opportunity to gain valuable experience and network with other esports players and professionals. Moreover, key players are providing the essential infrastructure and revenue for esports competitions. Hence, the league model in the tournaments is establishing numerous revenue sources for the esports ecosystem, which is promoting the growth of the industry. Key players are also focusing on various marketing strategies, such as booths, interactive advertising, posters, freebies, and video displays, to target potential customers. As the video gaming industry is evolving from a hobby to a professional career option, the tournaments are attracting investors, including celebrities and international brands, as sponsors due to the immense engagement of fans for esports tournaments. The increasing views and fan base is creating new growth avenues and high investment opportunities. Investments in this industry are currently growing considerably as the ecosystem provides various investment options across numerous subsectors. In addition, the growing number of franchise-style leagues is attracting traditional venture capital firms, strategic investors, and private equity, which is offering a favorable market outlook. Apart from this, there is an increase in the demand for free-to-play gaming models with considerable in-game microtransactions, as they have no upfront costs, and the fees are charged for featured or additional content. Along with this, the free-to-play model is promoting diversity and bringing young gamers together in the esports ecosystem, which is catalyzing the demand for esports. Additionally, the growing demand for media rights among various sports channels that comprise all the revenue paid to teams, leagues, and event organizers to obtain the rights to broadcast esports content on a channel is positively influencing the market. Moreover, media rights are generating high revenue due to numerous individual leagues, championships, and events streaming on various platforms regularly. Furthermore, the rising awareness among the masses about the benefits of playing esports, coupled with the increasing number of professional esports players, is offering lucrative growth opportunities to industry investors.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global esports market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on revenue model, platform and games.

Revenue Model Insights:

• Media Rights
• Advertising and Sponsorships
• Merchandise and Tickets
• Others
   

The report has provided a detailed breakup and analysis of the esports market based on the revenue model. This includes media rights, advertising and sponsorships, merchandise and tickets, and others. According to the report, advertising and sponsorships represented the largest segment.

Platform Insights:

• PC-based Esports
• Consoles-based Esports
• Mobile and Tablets
   

A detailed breakup and analysis of the esports market based on the platform has also been provided in the report. This includes PC-based esports, consoles-based esports, and mobile and tablets. 

Games Insights:

• Multiplayer Online Battle Arena (MOBA)
• Player vs Player (PvP)
• First Person Shooters (FPS)
• Real Time Strategy (RTS)
   

The report has provided a detailed breakup and analysis of the esports market based on the end-use. This includes multiplayer online battle arena (MOBA), player vs player (PvP), first person shooters (FPS), and real time strategy (RTS). According to the report, first person shooters (FPS) represented the largest segment.

Regional Insights:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others) was the largest market for esports. Some of the factors driving the Asia Pacific esports market included the growing popularity of online video games, increasing live streaming of games, rapid industrialization, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global esports market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include Activision Blizzard Inc., Capcom Co. Ltd., Electronic Arts Inc., Epic Games Inc., FACEIT, Gameloft SE (Vivendi SE), Gfinity PLC, Intel Corporation, Modern Times Group, Nintendo Co. Ltd., NVIDIA Corporation, Riot Games Inc., Valve Corporation, Zynga Inc., etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the esports market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global esports market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the esports industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.