According to the report by Expert Market Research (EMR), the global esports market is projected to grow at a compound annual growth rate (CAGR) of 16.40% between 2024 and 2032. The esports industry has witnessed exponential growth in recent years, driven by the increasing popularity of online gaming, streaming platforms, and advancements in gaming technology. With millions of fans and players globally, esports has evolved into a mainstream entertainment phenomenon, attracting a wide range of audiences and players, along with substantial investments from sponsors, advertisers, and gaming companies.
Esports, which involves organized, multiplayer video game competitions, has rapidly gained prominence due to several key factors. The growth of the gaming industry, driven by more advanced hardware, the expansion of high-speed internet access, and the development of sophisticated online gaming platforms, has facilitated the rise of professional gaming as a competitive sport. The competitive nature of esports, combined with its interactive and engaging content, has successfully captured the attention of both gaming enthusiasts and casual spectators, leading to a surge in global esports market demand.
One of the key drivers of the esports market is the growing popularity of live streaming platforms such as Twitch, YouTube Gaming, and Facebook Gaming. These platforms provide gamers with the opportunity to broadcast their gameplay to millions of viewers worldwide, transforming gaming into a spectator sport. The interactive nature of these platforms, where viewers can engage with players in real time, has helped build a sense of community among fans and players, fostering further growth in the market.
Furthermore, esports has seen significant investments from traditional sports teams, celebrities, and media companies, who view esports as a lucrative opportunity to expand their reach and engage with younger audiences. This influx of investment has contributed to the professionalization of esports, with teams, leagues, and tournaments being established to cater to the growing demand for competitive gaming. As the esports ecosystem continues to evolve, it is expected to drive further growth in the market, with increasing opportunities for players, sponsors, and advertisers.
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Market Segmentation
The esports market can be divided based on game type, revenue stream, and region.
Market Breakup by Game Type
- Multiplayer Online Battle Arena (MOBA)
- First-Person Shooter (FPS)
- Real-Time Strategy (RTS)
- Fighting Games
- Sports Simulation Games
- Others
Multiplayer Online Battle Arena (MOBA): MOBA games like League of Legends and Dota 2 are some of the most popular esports games globally. These team-based games require strategy, skill, and coordination, making them favorites among professional esports players and fans.
First-Person Shooter (FPS): FPS games such as Counter-Strike: Global Offensive (CS
) and Overwatch remain dominant in the esports landscape due to their fast-paced action and popularity among both casual gamers and professionals.
Real-Time Strategy (RTS): RTS games like StarCraft II have historically been popular in esports, particularly in regions like South Korea, although they have seen a decline in recent years with the rise of MOBA and FPS games.
Sports Simulation Games: Sports games like FIFA and NBA 2K simulate real-world sports and have attracted significant attention in the esports market, particularly from fans of traditional sports.
Market Breakup by Revenue Stream
- Sponsorships and Advertising
- Media Rights
- Merchandise and Tickets
- Game Publisher Fees
- Streaming Revenue
Sponsorships and Advertising: Sponsorship deals represent the largest revenue stream in the esports market. Companies from a range of industries, including technology, beverage, and automotive, are increasingly investing in esports sponsorships to target younger, tech-savvy audiences.
Media Rights: As esports viewership continues to grow, media companies and streaming platforms are increasingly securing exclusive broadcasting rights for major esports tournaments. This revenue stream is expected to grow as more broadcasters seek to tap into the growing esports fan base.
Merchandise and Tickets: With the rise of live esports events, ticket sales and merchandise, including team jerseys and branded gaming accessories, have become important revenue streams for esports organizations. Major esports tournaments now draw thousands of fans to stadiums and arenas, similar to traditional sports events.
Game Publisher Fees: Game publishers often organize esports tournaments and leagues, charging fees for teams to participate. This revenue stream is expected to grow as game publishers continue to invest in the development of competitive gaming ecosystems for their titles.
Streaming Revenue: Streaming platforms such as Twitch and YouTube Gaming allow esports organizations and players to monetize their content through ad revenue and subscription fees. As more fans tune in to watch esports events and streams, this revenue stream is expected to expand.
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Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
North America: North America is a major hub for esports, with the region home to some of the largest esports organizations, tournament organizers, and streaming platforms. The region has a highly developed esports infrastructure, with numerous esports arenas and dedicated training facilities for professional players.
Europe: Europe has also seen significant growth in the esports market, with countries like Germany, the United Kingdom, and France hosting major esports events and tournaments. European esports organizations and teams are highly competitive on the global stage, particularly in games like League of Legends and CS
.
Asia Pacific: The Asia Pacific region is the largest and most rapidly growing esports market, driven primarily by the popularity of esports in countries like China, South Korea, and Japan. China is home to a massive esports fan base, and the country’s government has recognized esports as an official sport, further fueling growth in the market.
Latin America: Esports is gaining momentum in Latin America, with Brazil and Mexico emerging as key markets. The region’s growing internet penetration and youthful population have contributed to the increasing popularity of esports in recent years.
Middle East and Africa: The esports market in the Middle East and Africa is still in its nascent stages, but the region is witnessing growing interest in competitive gaming. Countries like the United Arab Emirates and Saudi Arabia are investing in esports infrastructure and hosting tournaments to boost the market.
Competitive Landscape
The EMR report delves into the market shares, strategic investments, player performance, and mergers and acquisitions of the leading companies operating in the global esports market. Major players in the esports ecosystem include game publishers, esports teams, tournament organizers, and streaming platforms.
Some of the key players explored in the report by Expert Market Research include:
- Tencent Holdings Ltd.
- Activision Blizzard, Inc.
- Electronic Arts Inc.
- Riot Games, Inc.
- Valve Corporation
- Ubisoft Entertainment SA
- Epic Games, Inc.
- Take-Two Interactive Software, Inc.
- ESL Gaming GmbH
- Garena
- Others
Tencent Holdings Ltd.: As one of the largest game publishers in the world, Tencent is a dominant player in the global esports market. The company’s games, including League of Legends and Honor of Kings, are among the most popular esports titles globally.
Activision Blizzard, Inc.: Activision Blizzard is known for its successful esports franchises, including Overwatch and Call of Duty. The company has invested heavily in the professionalization of esports through the development of leagues like the Overwatch League and Call of Duty League.
Riot Games, Inc.: Riot Games is the developer of League of Legends, one of the most popular and competitive games in esports. The company organizes and operates the League of Legends Championship Series (LCS) and other regional leagues around the world.
Valve Corporation: Valve is the developer of Counter-Strike: Global Offensive and Dota 2, two of the biggest esports titles globally. The company organizes major tournaments such as The International for Dota 2 and has a strong presence in the global esports ecosystem.
Garena: Garena is a leading digital entertainment platform in Southeast Asia and Taiwan, known for its popular esports title Free Fire. The company has successfully grown Free Fire into a major mobile esports title, particularly in regions like Latin America and Southeast Asia.
ESL Gaming GmbH: ESL is one of the largest esports event organizers in the world, hosting numerous tournaments across various game titles. The company has played a crucial role in shaping the professional esports landscape and continues to be a key player in the industry.
The global esports market is set to witness robust growth between 2024 and 2032, driven by the increasing popularity of online gaming, advancements in gaming technology, and the rising influence of streaming platforms. As esports continues to grow in popularity, the market is expected to see further investment from sponsors, media companies, and advertisers, contributing to its expansion.