According to a comprehensive report by Market.us, the global esports market size was projected to be USD 1,983.4 Million in 2023. By the end of 2024, the industry is likely to reach a valuation of USD 2,396.9 Million. During the forecast period 2023-2032, the global market for esports is expected to garner a 20.9% Compound Annual Growth Rate (CAGR) and reach a size of USD 10,905.1 Million by 2032.
One of the driving forces behind the growth of the esports market is the increasing accessibility of video games and online platforms for gameplay and streaming. This accessibility has allowed esports to reach a global audience, transcending geographical boundaries and attracting millions of viewers from around the world.
- The esports market is expected to reach a size of USD 10,905.1 million by 2032, growing at a Compound Annual Growth Rate (CAGR) of 20.9% during the period 2023-2032.
- Live streaming dominates with a major revenue share of 64.8%.
- Multiplayer Online Battle Arena (MOBA) games lead with a significant revenue share of 32.6%.
- Smartphones dominate the market with a major revenue share of 32.4%
- North America holds the largest market share, accounting for 37.2% of the revenue. This dominance is due to its well-established esports ecosystem and high disposable income levels.
- Major players in the esports market include Twitch Interactive, Inc., Activision Blizzard, Inc., Tencent Holdings Ltd., and others, contributing to the industry’s growth and development.
Factors affecting the growth of the esports market:
- Technological advancements: The progress in gaming technology, including graphics, game design, and online connectivity, significantly impacts the esports market. Improvements in streaming services and platforms also make it easier for audiences to access and engage with esports content, contributing to market growth.
- Increased audience reach: The global accessibility of the internet has broadened the audience for esports. Platforms like Twitch, YouTube, and Facebook Gaming allow millions worldwide to watch live tournaments and competitions, expanding the market’s reach and potential consumer base.
- Rising popularity and legitimization: As esports continues to gain recognition as a legitimate form of competition, more people are taking an interest. The inclusion of esports in mainstream media and the consideration of its addition to international events like the Asian Games and the Olympics enhance its profile and acceptance.
- Investment and sponsorship: The influx of investment from venture capitalists, traditional sports teams, and celebrities, along with significant sponsorships from major brands, fuels the growth of the esports industry. This financial support helps improve the quality and scale of events and contributes to the overall ecosystem.
- Growing viewer base: The increasing popularity of esports globally has resulted in a substantial viewer base, driving demand for more tournaments and gaming content.
- Rising sponsorship and advertising: As esports gains mainstream recognition, more companies are investing in sponsorships and advertising, significantly boosting the market’s financial ecosystem.
- Technological advancements: Innovations in gaming technology, streaming services, and interactive platforms enhance the viewer experience, attracting more participants and spectators to esports.
- Inclusion in international competitions: The recognition of esports in major sporting events and the possibility of inclusion in the Olympics bolster its legitimacy and popularity, driving further growth.
- Lack of standardization: The absence of a unified global standard for organizing tournaments and defining professional criteria can hinder market growth and player development.
- Concerns over health and wellbeing: Prolonged gaming sessions raise concerns about the physical and mental health of players, potentially restraining wider acceptance of esports as a career.
- Regulatory challenges: Varying regulations across different regions regarding gaming, broadcasting, and monetization can complicate the organization of international events and market expansion.
- Dependency on internet infrastructure: Esports heavily relies on stable and high-speed internet, making it less accessible in regions with inadequate digital infrastructure.
- Educational and career development: Increasing recognition of esports in educational institutions and as a viable career path opens up opportunities for market expansion and talent development.
- Diversification into new genres: Exploring and incorporating a wider range of game genres can attract a more diverse audience and create new niches within the esports market.
- Emerging markets: Expanding into untapped regions with growing internet penetration and a young demographic can significantly increase the market base for esports.
- Technological integration: Integrating emerging technologies like VR and AR into esports can enhance the viewer experience and open up new avenues for market growth.
- Monetization issues: Finding sustainable revenue models beyond sponsorships and advertising remains a challenge, especially for smaller organizations and tournaments.
- Cultural acceptance: Despite its growing popularity, esports still faces skepticism and cultural barriers in some regions, affecting its recognition as a legitimate form of competition.
- Cybersecurity threats: The online nature of esports makes it susceptible to hacking, cheating, and other cybersecurity threats, undermining the integrity of competitions.
- Player burnout and turnover: The intense nature of professional gaming can lead to high levels of stress and burnout among players, impacting the longevity of careers and the stability of teams.
Key market trends:
- Increased live event attendance: As esports continues to grow, there’s a notable trend towards larger live events with massive audiences, creating a stadium-like atmosphere for major tournaments.
- Mainstream media involvement: Traditional media outlets are increasingly broadcasting esports events, signaling a shift towards mainstream acceptance and broader audience reach.
- Collaborations and franchising: There’s a growing trend of collaborations between esports teams and traditional sports brands, as well as the franchising of teams and leagues to ensure stability and growth.
- Evolving audience engagement: Innovations in interactive viewing, fan engagement, and second-screen experiences are becoming more prevalent, enhancing the way audiences consume and interact with esports content.
The competitive landscape of the market has also been examined in this report. Some of the major players include:
- Twitch Interactive, Inc.
- Activision Blizzard, Inc.
- Tencent Holdings Ltd.
- Riot Games, Inc.
- Gfinity PLC.
- X1 Esports and Entertainment Ltd.
- Gameloft SE
- Sony Group Corporation
- Valve Corporation
- Electronic Arts
- Other Key Players