Global Esports Market Size, Share Report By Streaming Type (Live, On-Demand), By Revenue Stream Type (Media Rights, Game Publisher Fee, Sponsorship, Digital Advertisement, Tickets and Merchandise), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global Esports Market size is expected to be worth around USD 16.7 billion by 2033, from USD 2.3 billion in 2023, growing at a CAGR of 21.9% during the forecast period from 2024 to 2033.

Esports, or electronic sports, refers to the competitive world of video gaming where players or teams compete against each other in popular video games. This can range from solo games in genres like fighting or shooting, to team-based games like sports simulations or strategic games. These competitions can be casual, taking place online at home, or they can be part of organized tournaments. Some of these tournaments are so large they fill stadiums and are watched by millions of fans online, complete with professional commentary and large cash prizes.

The esports market is experiencing rapid growth, driven by increasing numbers of esports enthusiasts and casual viewers. This market includes revenues from sponsorships, advertising, media rights, game publisher fees, and merchandise sales. With technological advancements such as live streaming, the market is becoming more accessible, allowing more viewers and players to participate from anywhere in the world. The market’s expansion is supported by investments from major brands, which see the value in reaching a younger, tech-savvy audience.

Additionally, educational institutions and governments are beginning to recognize esports, with some schools offering programs and scholarships, further promoting the industry’s growth. The demand within the esports market is driven by a growing global audience that not only plays video games but also enjoys watching competitive gaming as a spectator sport. This demand is fueled by the accessibility of internet streaming platforms, like Twitch and YouTube, where millions tune in to watch live matches and tournaments.

The increasing acceptance of esports as a legitimate form of competition contributes to its rising popularity. Brands and companies are keen to capitalize on this by sponsoring teams and events, further boosting the market’s expansion. The esports industry presents several opportunities for growth and investment. One significant opportunity is the expansion into new regions and demographics, tapping into markets that have yet to fully embrace esports.

Another opportunity lies in technological advancements, such as virtual and augmented reality, enhancing viewer experiences and engagement levels. There’s also potential in educational sectors, where institutions can integrate esports into their curricula or extracurricular activities, promoting skills like teamwork and strategic thinking. Additionally, as the industry matures, there are increasing opportunities for professionalization and career development within esports, ranging from athletes and coaches to management and technical roles.

The Esports market continues to exhibit robust growth, with a global audience that surpassed 540 million in 2023. Sponsorship revenues have been a significant contributor to the industry’s financial landscape, generating approximately $895 million in 2023. Forecasts suggest that by 2025, these figures are expected to climb beyond the $1 billion mark, underscored by a growing base of enthusiasts and occasional viewers.

By 2025, the audience is projected to consist of 322.5 million occasional viewers and 318.1 million dedicated Esports fanatics, indicating a broadening appeal and deepening engagement across demographics. Geographically, the Asia Pacific region dominates the viewer distribution, accounting for more than 57% of the global Esports audience, with China and the Philippines making substantial contributions.

Meanwhile, North America and Europe maintain significant stakes in the market, comprising 12% and 16% of the total viewership, respectively. The industry’s financial success is further exemplified by the earnings of top players; for instance, Johan Sundstein (N0tail), the highest-earning esports player, has amassed over $7 million in winnings.

Notably, the esports economy has created a cadre of elite players, with 10 individuals surpassing the $5 million earnings threshold and 177 players earning more than $1 million. Major tournaments like the League of Legends World Championship and Dota 2’s championships, with prize pools reaching up to $30 million, continue to drive spectatorship and professional participation, underscoring the sector’s lucrative and dynamic nature.

Key Takeaways

• The global esports market size is expected to be worth around USD 16.7 Billion by 2033, from USD 2.3 Billion in 2023, growing at a CAGR of 21.9% during the forecast period from 2024 to 2033.
• In 2023, the live-streaming segment held a dominant market position, capturing more than a 63.1% share of the global esports market.
• In 2023, the media rights segment held a dominant market position, capturing more than a 27% share of the global esports market.
• In 2023, North America held a dominant market position in the global esports market, capturing more than a 36.3% share, with USD 0.83 Bn.

Streaming Type Segment Analysis

In 2023, the live-streaming segment held a dominant market position, capturing more than a 63.1% share of the Global Esports Market. The dominance of the live-streaming segment in the market is driven by several factors.

The increasing demand for real-time content, particularly in sports technology, entertainment, and events, has made live streaming a preferred mode of consumption. Consumers in the present day prefer flexibility and on-demand content, making live-streaming platforms attractive.

Additionally, the proliferation of high-speed internet and mobile devices has made streaming more accessible globally, allowing fans to watch games on the go. Sports leagues and broadcasters leverage live streaming to reach a broader audience, monetizing through subscriptions, advertisements, and sponsorships.

The integration of interactive features, such as live commentary and social media engagement, further enhances the user experience. The shift from traditional TV broadcasting to digital platforms also reflects the need for targeted marketing and data analytics, which streaming services can offer, making them crucial in the evolving Esports league.’

Revenue Stream Type Segment Analysis

In 2023, the media rights segment held a dominant market position, capturing more than a 27% share of the global esports market. The dominance of media rights in the esports market stems from the increasing global viewership, making Esports a valuable commodity for broadcasters and streaming platforms. As Esports tournaments attract millions of viewers worldwide, media companies seek exclusive broadcasting rights to capture this lucrative audience.

The rise of digital platforms like Twitter, YouTube, and Facebook Gaming further drives competition, pushing up the value of these rights. Moreover, advertisers and sponsors are drawn to the engaged and younger demographic of Esports audiences, boosting the revenue potential of media rights. This shift mirrors traditional sports, where media rights have become a significant revenue stream due to their ability to reach a vast, highly engaged audience.

Key Market Segments

By Streaming Type

• Live
• On-Demand

By Revenue Stream Type

• Media Rights
• Game Publisher Fee
• Sponsorship
• Digital Advertisement
• Tickets and Merchandise

Drivers

Increase in Live Streaming and Online Platforms

A major driver for the Esports market is the significant growth of live streaming and the proliferation of online platforms. The surge in viewership for live Esports events is primarily fueled by the availability of streaming platforms that cater specifically to Esports audiences.

These platforms enhance viewer engagement by offering high-quality live content from popular tournaments and leagues, making it easily accessible globally. This accessibility is crucial for driving the market’s expansion as it attracts a broader audience and increases potential revenue streams from advertising and sponsorships.

Restraint

Higher Cost

One of the main restraints facing the Esports industry is the escalating cost associated with game development. As the demand for high-quality, engaging content increases, developers face pressures to enhance graphics, narratives, and gameplay mechanics, which significantly raises production costs.

These higher costs can restrict the entry of new players into the market and challenge existing ones to maintain a balance between innovation and profitability. The need for advanced technology and specialized skills, along with the use of celebrity endorsements to boost game appeal, further adds to these financial burdens.

Opportunities

Expansion in emerging markets

The Esports market is experiencing rapid expansion in diverse global markets, particularly in the Asia Pacific region. This growth is supported by an increasing number of internet users and the rising popularity of mobile gaming.

Countries like China and South Korea have developed a robust infrastructure for Esports, which includes professional leagues and training facilities, creating significant opportunities for market growth. This regional growth is accompanied by an increasing acceptance of Esports as a legitimate sport, further opening up opportunities for investment and development in these markets.

Challenges

Ensuring integrity and non-business

A significant challenge in the esports industry is maintaining integrity and fair play, especially with the growing influence of betting and the financial interests involved in competitive gaming.

The involvement of various stakeholders, including players, event organizers, and sponsors, can sometimes lead to conflicts of interest and challenges in ensuring a fair competitive environment. The industry needs robust mechanisms to prevent cheating and match-fixing, which are vital for maintaining the sport’s credibility and attracting continued investment.

Growth Factors

• Technological Advancements: Innovations in gaming technology, including improvements in game graphics and interactivity, enhance the user experience, making Esports more appealing to both players and viewers.
• Expansion of Gaming Communities: The Esports sector is fueled by burgeoning gaming communities, particularly in regions with high internet penetration like North America and the Asia Pacific. This growth is supported by an increasing number of Esports enthusiasts and professional players.
• Corporate Sponsorships and Investments: Significant investments from major brands and the influx of corporate sponsorships have solidified the financial foundation of Esports, enabling large-scale tournaments and consistent growth in the sector.
• Government and Institutional Support: In regions like the Middle East, governmental and institutional support has led to substantial investments in the Esports infrastructure, which promotes the sport at a grassroots level and encourages widespread participation.

Latest Trends

• Mobile Gaming Surge: The rise of mobile gaming continues to impact Esports significantly, with mobile platforms offering new ways to expand and reach wider audiences, especially in mobile-centric regions like Asia.
• Diverse Content Creation: There is a growing trend towards the diversification of content within Esports, ranging from traditional tournament coverage to content that includes player interviews, strategic analysis, and more personalized content for different viewer segments.
• 5G Technology: The rollout of 5G technology is expected to enhance the streaming quality and accessibility of Esports events, reducing latency and allowing for more interactive and engaging viewer experiences.
• Educational Integration: Esports is increasingly being integrated into educational settings, with schools and universities establishing clubs and leagues, which not only boost participation but also legitimize Esports as a competitive discipline.

Regional Analysis

North America region is leading the market

In 2023, North America held a dominant market position in the global esports market, capturing more than a 36.3% share. This leading status is supported by a robust infrastructure for Esports, including advanced technological resources and widespread internet connectivity, which facilitate both high-quality virtual online gaming and streaming experiences.

The region is home to some of the world’s largest gaming and technology companies, which invest heavily in the Esports ecosystem, contributing to its growth and innovation. Moreover, North America boasts a strong culture of competitive gaming, supported by numerous local and international tournaments that draw massive audiences.

These events not only cultivate a thriving community of gamers but also attract significant sponsorship and media rights deals, enhancing the region’s revenue streams from Esports. The presence of prestigious universities and colleges with their own Esports leagues further underpins the region’s dominance by fostering young talent and maintaining high levels of participation and viewer interest.

The commercial success of Esports in North America is also amplified by the region’s marketing and advertising prowess. Advertisers and brands are eager to connect with the predominantly young, tech-savvy Esports audience, leading to innovative partnerships and advertising models that integrate Esports content with digital and social media platforms.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • 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

Key Players Analysis

The Esports market is highly competitive, with several key players driving innovation and growth through strategic acquisitions, new product launches, and mergers.

Twitch Interactive, Inc., a leading live streaming platform, continues to play a key role in the market by expanding its content and viewer engagement features.

Activision Blizzard, Inc., known for popular titles like Call of Duty and Overwatch, has made significant strides by launching new game updates and tournaments to keep the community engaged.

Tencent Holdings Ltd., one of the largest video game companies in the world, has been actively acquiring smaller game studios to expand its portfolio and influence in the Esports arena. Riot Games, Inc., the developer behind League of Legends, has introduced new game modes and championships, further solidifying its presence in the competitive gaming scene.

Top Key Players in the Market

• Microsoft Corporation
• ESL Gaming GmbH
• Electronic Arts Inc.
• Riot Games, Inc.
• Gameloft SE
• Valve Corporation
• Twitch Interactive, Inc.
• Gfinity PLC
• Sony Corporation
• Loco
• Other Key Players

Recent Developments

• In April 2023, NODWIN Gaming announced the acquisition of 51% stakes in Branded, a Singaporean live media company. Through this acquisition, the company aims to expand its gaming and Esports network across international sponsors.
• In February 2023, Nvidia and Microsoft partnered to bring Xbox PC games to Nvidia’s GeForce Now cloud AI gaming platform. This partnership will include Activision Blizzard titles, enhancing their cloud gaming presence.

Report Scope