According to a report from Allied Market Research, the global esports industry generated $940 million in 2020, and is anticipated to hit $4.75 billion by 2030.
The report, is titled “Esports Market by Application, Streaming Type, Device Type, and Revenue Stream: Global Opportunity Analysis and Industry Forecast, 2020-2030″.
There has been a major shift toward online gaming as well as an increase in the popularity of esports. A spike in events and tournaments has driven the growth of the global esports market. However, a lack of standardization in online gaming events, and online threats (such as gambling) hinder the market growth.
An increase in the number of tournaments and events with huge prizes for winners and runner-up teams will create investment opportunities in the coming years.
Based on components, the platform segment held the highest market share in 2020, accounting for more than two-thirds of the global esports market, and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the increasing adoption of esports among developed countries to gain a strategic, as well as competitive, advantage over their competitors.
The services segment is projected to manifest the highest CAGR (Compound Annual Growth Rate) of 18.6% from 2021 to 2030. That spike is owed to a surge in online gaming and virtual tournaments.
Based on streaming type, the on-demand segment accounted for the largest share in 2020, contributing to three-fifths of the global esports market, and is projected to maintain its lead position during the forecast period. The growth of the segment is attributed to numerous benefits provided by streaming systems such as the quality of gaming, customizability, and secure gaming IDs. Moreover, the live segment is expected to portray the largest CAGR of 19.5% from 2021 to 2030, owing its growth to the cost-effective and easy-to-broadcast operation.
Based on region, Asia-Pacific, followed by North America, held the highest market share in terms of 2020 revenue, accounting for nearly two-fifths of the global esports industry. Moreover, the same region is expected to witness the fastest CAGR rise of 19.5% from 2021 to 2030, mostly due to strong technological growth in the gaming sector. The report also includes North America, LAMEA (Latin America, Middle East and Africa), and Europe.