Global Esports Market By Streaming Type (Live and On-Demand), By Revenue Streaming (Media Rights, Advertisement, Sponsorship, Ticket & Merchandise, Game Publisher Fees, and Others), By Gaming Genre (Real-Time Strategy Games, First-Person Shooter Games, Fighting Games, Multiplayer Online Battle Arena Games, Mass Multiplayer Online Role-Playing Games, Others), By Device Type (Smartphone, Smart TV, Desktop -laptop-tablets, Gaming console), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: March 2024
- Report ID: 106679
- Number of Pages: 271
- Format:
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Quick Navigation
- Report Overview
- Key Takeaways
- Streaming Type Analysis
- Revenue Streaming Analysis
- Gaming Genre Analysis
- Device Type Analysis
- Key Market Segments
- Driving Factor
- Restraining Factor
- Growth Opportunity
- Latest Trends
- Geopolitical and Recession Impact Analysis
- Regional Analysis
- Market Share and Key Players Analysis
- Recent Developments
- Report Scope
Report Overview
The Global Esports Market size is expected to be worth around USD 10,905.1 Million by 2033, from USD 1,983.4 Million in 2023, growing at a CAGR of 20.9% during the forecast period from 2024 to 2033.
The esports market has also attracted significant investment from various sources, including media companies, tech giants, and traditional sports organizations. These investments have fueled the development of professional leagues and tournaments, providing players with opportunities to compete at the highest level and earn substantial prize money.
Moreover, the esports market has opened up new avenues for revenue generation, such as sponsorships, advertising, merchandise sales, and media rights. Companies from diverse industries, including technology, apparel, and food and beverage, are eager to associate their brands with esports to tap into the passionate and engaged fanbase.
The United States Esports market is currently valued at over ~$1.07 billion, showcasing significant growth and investment potential. This dynamic sector attracts a global audience exceeding 540 million individuals, comprised of more than 322.5 million occasional viewers and 318.1 million dedicated esports fanatics projected to engage with esports content by 2025.
The Asia Pacific region commands the majority share, with over 57% of total esports viewership, while more than 40% of esports enthusiasts hail from China and the Philippines. Remarkably, some esports players have achieved earnings surpassing $100 million through gaming activities.
Key Takeaways
- The Esports Market is projected to reach a revised size of USD 10,905.1 Mn by 2032, with a notable CAGR of 20.9% over the analysis period of 2023-2032.
- The live streaming type dominates with a major revenue share of 64.8%, and the sponsorship segment leads with a revenue share of 38.4%.
- North America dominates the market with a major revenue share of 37.2%, owing to its robust esports ecosystem and high disposable income levels.
- The Esports user penetration rate in the U.S. is 18.7% as of 2024, with expectations to grow to 23.4% by 2028.
- China’s user penetration rate starts at 15.5% in 2024 and is forecasted to reach 17.9% by 2028.
- The total prize money for major Esports competitions in 2023 was around $85 million.
- Investments in the Esports industry hit $1.2 billion in 2023.
- A majority, over 60%, of Esports fans in 2023 were aged between 18 and 34.
- Big tech firms like Microsoft, Intel, and NVIDIA poured more than $500 million into Esports deals in 2023.
- The adoption of AR and VR in Esports witnessed a 45% increase in 2023.
- In 2023, more than 60% of Esports fans interacted with their favorite teams and players on platforms like Twitter and Discord.
- Key Players: Major players in the esports market include Twitch Interactive, Inc., Activision Blizzard, Inc., Tencent Holdings Ltd., and others.
Streaming Type Analysis
The Live Segment Dominates the Market Globally with a Major Revenue Share of 64.8%.
Based on streaming type, the esports market is segmented into live and on-demand. Among these streaming types, live dominates the segment with a major revenue share of 64.8%. This massive growth of live streaming type is due to live broadcasts offering a real-time, unscripted experience that resonates with the competitive and unpredictable nature of esports.
Fans are drawn to the excitement and immediacy of live events. Live streaming fosters a sense of community and interaction among viewers. The live chat feature allows fans to engage with each other and with streamers, creating a dynamic and social viewing experience. Moreover, esports tournaments and matches are time-sensitive, and fans want to follow the action as it unfolds. Live streaming caters to this demand, ensuring that enthusiasts don’t miss out on crucial moments or results.
Revenue Streaming Analysis
The sponsorship Segment Dominates the Market by Securing a Major Revenue Share of 38.4%.
Based on revenue streaming, the market is segmented into media rights, advertising, sponsorship, ticket & merchandise, game publisher fees, and others. The sponsorship segment is dominating the market globally by covering a major revenue share of 38.4%. This dominance can be attributed to the sponsors that are attracted to the esports ecosystem due to its rapidly growing and highly engaged global audience.
Esports tournaments and leagues provide a unique platform for brands to reach a diverse demographic of tech-savvy millennials and Gen Z consumers. The long-term nature of sponsorship deals ensures stable revenue streams for esports organizations and teams. Brands are keen on establishing enduring partnerships, which can extend beyond single events or seasons, thus providing financial stability and predictability.
Moreover, esports offers a versatile sponsorship landscape, allowing brands to creatively integrate into the gaming experience through logo placements, in-game branding, and sponsored events, leading to enhanced brand visibility and recognition among esports enthusiasts. The synergistic relationship between sponsors and the esports industry cements sponsorship’s dominant position in the revenue mix.
Note: Actual Numbers Might Vary in the final report
Gaming Genre Analysis
The Multiplayer Online Battle Arena Games Segment Dominates the Market with a Major Revenue Share of 32.6%.
Based on the Gaming genre, the market is segmented into real-time strategy, first-person shooter, fighting, multiplayer online battle arena, mass multiplayer online role-playing games, and others. Among these segments, the multiplayer online battle arena holds a major revenue share of 32.6% to dominate the market. The multiplayer online battle arena games like League of Legends and Dota 2 have a massive and dedicated player base, attracting millions of viewers due to their strategic depth and team-oriented gameplay.
The complexity of these games creates a high level of engagement, making them ideal for competitive esports. These games offer a well-structured competitive ecosystem with regular tournaments and leagues, ensuring consistent content for fans and sponsors. These tournaments often feature substantial prize pools, attracting top-tier talent and organizations.
Device Type Analysis
Smartphones Dominate the Market by Covering the Major Revenue Share of 32.4%
On the basis of device type, the market is classified into smartphones, smart TVs, desktop – tablets, and gaming consoles. From these device types, smartphones lead the segment with a major revenue share of 32.4%.
Smartphones offer unparalleled accessibility. They are ubiquitous, with a vast global user base, allowing esports enthusiasts to follow their favorite games and players on the go. The convenience of mobile gaming also contributes to this dominance, as it aligns with the fast-paced, always-connected lifestyle of modern consumers. Esports titles are increasingly being optimized for mobile platforms, attracting a new generation of mobile gamers. Games like PUBG Mobile and Free Fire have gained immense popularity and viewership, further bolstering the smartphone’s position.
Moreover, the rise of mobile esports tournaments and leagues has created a vibrant ecosystem with substantial prize pools and sponsorship opportunities. This has solidified smartphones as the preferred device for esports consumption and participation, making it the dominant segment in the market.
Key Market Segments
Based on Type
- Live
- On-Demand
Based on Revenue Streaming
- Media Rights
- Advertisement
- Sponsorship
- Ticket & Merchandise
- Game Publisher Fees
- Others
Based on the Gaming Genre
- Real-Time Strategy Games
- First-Person Shooter Games
- Fighting Games
- Multiplayer Online Battle Arena Games
- Mass Multiplayer Online Role-Playing Games
- Others
Based on Device Type
- Smartphone
- Smart TV
- Desktop -laptop-tablets
- Gaming console
Driving Factor
Increasing Investments in the Video Gaming Industry is Driving the Growth of the Market Globally.
The explosive growth of the esports market can be attributed to several key drivers. First and foremost is access to high-speed internet worldwide and streaming platforms, which make esports more widely accessible. The rising investments from major brands and corporations have provided substantial capital injection into the industry, leading to higher production values and larger prize pools.
Esports as an entertainment form has gained increasing acceptance as a legitimate form of entertainment, attracting top talent to this form of gaming and entertainment. Furthermore, the COVID-19 pandemic accelerated this shift by canceling or postponing traditional sporting events due to illness. All these factors are contributing to an ever-expanding esports market.
Restraining Factor
Metabolic Disorder, Social Behavior Disorder to Restrain the Market Growth Globally.
Gamers could develop metabolic disorders from light-emitting device computer monitors. They may also experience psychological problems due to gambling addiction or social behavior disorders. Zwiebel and colleagues recently found that electronic sports players are more likely to sustain musculoskeletal injuries in their necks, backs, and upper extremities.
Spending excessive time in front of a computer screen can lead to metabolic disorders. These issues are most often caused by poor posture and sedentary living. Another concern is the introduction of electronic sports college scholarships, as this allows young people to claim that they are the next big star in electronic sports, even though the chances of them being one are very low. These are the key factors that restrain the market growth globally.
Growth Opportunity
Monetization of Esports Content is Expected to Create Many Lucrative Opportunities in the Market Over the Forecast Period.
The esports market is a goldmine of opportunities waiting to be tapped into. The monetization of esports content through streaming and media rights is a burgeoning sector. As viewership numbers continue to soar, media companies and streaming platforms can secure lucrative broadcast deals.
Esports betting and gambling represent a growing area as regulations evolve globally. This presents a chance for betting operators to expand their portfolios and reach a new, passionate audience. Moreover, esports technology solutions, including hardware, software, and streaming tools, are in high demand. Innovations in virtual reality, augmented reality, and gaming peripherals offer room for businesses to thrive.
Lastly, the esports merchandise market is booming, with fans eager to purchase team-branded apparel and accessories. Entrepreneurs can capitalize on this by launching esports-focused e-commerce ventures. In a rapidly evolving landscape, these opportunities are poised for growth and profitability.
Latest Trends
Mobile Gaming Tournaments are Gaining Traction in the Market.
A prominent trend in the esports market is the convergence of traditional sports and esports. This is evident through the formation of esports leagues by major sports franchises, such as the NBA 2K League and the Overwatch League, which mirror the structure and competitiveness of traditional sports leagues.
This convergence is fostering greater legitimacy and recognition for esports among mainstream audiences. Another noteworthy trend is the increased focus on regionalization and localization. Esports organizations are establishing regional teams and competitions to cater to specific markets, allowing for greater fan engagement and regional rivalries. This approach helps in building a strong sense of community among fans. Additionally, mobile esports is gaining prominence with the rise of mobile gaming. Games like PUBG Mobile and Free Fire are driving massive viewership and participation, expanding the esports audience.
Geopolitical and Recession Impact Analysis
Geopolitical Tensions and Economic Recessions can Hinder International Competition, Thereby Restricting the Growth of the Market.
The esports market is not immune to geopolitical and recessionary influences. Geopolitical tensions can impact the global flow of talent, sponsorships, and events. Visa restrictions and trade disputes can hinder international competitions and player transfers, affecting the overall competitiveness of the esports ecosystem.
During economic recessions, consumer spending patterns may shift, impacting sponsorships and advertising budgets. Companies may tighten their purse strings, potentially reducing their investments in esports marketing. However, esports has shown resilience during economic downturns as it offers cost-effective entertainment compared to traditional sports. People often turn to gaming and esports during challenging times, potentially boosting viewership and participation.
In summary, while geopolitical tensions and economic recessions can introduce uncertainties, the esports market’s adaptability and strong online presence can help it weather these challenges. Smart strategies include diversifying revenue streams, are essential for mitigating potential impacts.
Regional Analysis
North America Dominates the Market with a Major Revenue Share of 37.2%.
The North American region leads the market with a major revenue share of 37.2%. North America boasts a robust esports ecosystem with a rich history of competitive gaming. The region is home to numerous organizations, top-tier players, and major tournaments like the League of Legends Championship Series (LCS) and Overwatch League tournaments, drawing significant viewership and attendance for events held there, creating an attractive market for advertisers and sponsors alike.
Furthermore, North America benefits from having developed infrastructure, a strong digital presence, and high disposable income levels, making it an attractive market for esports investments from major tech brands that wish to establish their presence in the region and, thereby, further strengthening the region’s dominance.
Note: Actual Numbers Might Vary in the final report
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
The esports market has witnessed explosive growth, with key players dominating various segments. In the esports platform category, Twitch leads the way with a significant market share, followed closely by YouTube Gaming. In terms of game publishers, Tencent, through its ownership of Riot Games and Supercell, holds a substantial share.
In hardware, gaming peripherals giants like Logitech and Razer are prominent players. Team Liquid and Fnatic are among the top esports teams, while TSM and Cloud9 are also notable. As the market continues to expand, new entrants are emerging, making it a dynamic and competitive industry with evolving market shares.
Top Key Players:
- Twitch Interactive, Inc.
- Activision Blizzard, Inc.
- Tencent Holdings Ltd.
- Riot Games, Inc.
- Gfinity PLC.
- X1 Esports and Entertainment Ltd.
- Loco
- Gameloft SE
- Sony Group Corporation
- Valve Corporation
- Electronic Arts
- Other Key Players
Recent Developments
- In February 2023, Tencent disclosed its plan to launch a Valorant esports league, underscoring its commitment to solidifying its position in the competitive gaming sector. This initiative signifies a notable extension of Tencent’s influence within the esports community.
- In November 2022, Electronic Arts announced FGS23’s eChampions League. The eChampions League (eCL) anticipates providing a high-caliber gaming competition featuring Europe’s finest players, all vying for a portion of the substantial prize fund exceeding $280,000 USD.
Report Scope
Report Features Description Market Value (2023) USD 1,983.4 Mn Forecast Revenue (2032) USD 10,905.2 Mn CAGR (2023-2032) 20.9% Base Year for Estimation 2023 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Streaming Type (Live and On-Demand), By Revenue Streaming (Media Rights, Advertisement, Sponsorship, Ticket & Merchandise, Game Publisher Fees, and Others), By Gaming Genre (Real-Time Strategy Games, First-Person Shooter Games and Others), By Device Type (Real-Time Strategy Games and Others) Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, and Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam, and Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Twitch Interactive, Inc., Activision Blizzard, Inc., Tencent Holdings Ltd., Riot Games, Inc., Gfinity PLC., X1 Esports and Entertainment Ltd., Loco, Gameloft SE, Sony Group Corporation, Valve Corporation, Electronic Arts, and Other Key Players. Customization Scope Customization for segents, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is esports?Esports (or electronic sports), more commonly referred to as electronic gaming sports (EGTs), is an evolving form of competition using video gaming technology. Esports usually consists of organized, multiplayer tournaments between professional gamers competing individually or as teams; similar to traditional sports in that governing bodies oversee competition rules while spectators enjoy watching matches unfold live or via streaming services like Twitch.
What are the most popular esports games?The most popular esports games include:
- League of Legends
- Dota 2
- Counter-Strike: Global Offensive
- Fortnite
- Valorant
- Overwatch
- Call of Duty
- Rocket League
- FIFA
- NBA 2K
- Madden NFL
How big is the esports market?The Global Esports Market in terms of revenue was estimated to be worth USD 1,641.2 Mn in 2022 and is poised to reach USD 10,905.1 Mn by 2032, growing at a CAGR of 20.9% from 2023 to 2032.
Who are the key players in the esports market?Market Key Players:
- Twitch Interactive, Inc.
- Activision Blizzard, Inc.
- Tencent Holdings Ltd.
- Riot Games, Inc.
- Gfinity PLC.
- X1 Esports and Entertainment Ltd.
- Loco
- Gameloft SE
- Sony Group Corporation
- Valve Corporation
- Electronic Arts
- Other Key Players
Which segment accounted for the largest esports market share?The North America region leads the market with a major revenue share of 37.2
- Twitch Interactive, Inc.
- Activision Blizzard, Inc.
- Tencent Holdings Ltd. Company Profile
- Riot Games, Inc.
- Gfinity PLC.
- X1 Esports and Entertainment Ltd.
- Loco
- Gameloft SE
- Sony Group Corporation
- Valve Corporation
- Electronic Arts
- Other Key Players
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