Global Esports Market Report and Forecast 2024-2032

Global Esports Market Outlook

The global esports market size reached nearly USD 2.09 billion in 2023. The market is projected to grow at a CAGR of 16.40% between 2024 and 2032 to reach a value of around USD 8.20 billion by 2032.

Esports or electronic sports refer to sporting events or organised competitions that are typically played through video games. Both players and spectators can be located in any part of the world. The competition or match can be of different gaming genres, with options for sponsorships, advertising, tickets, and merchandising, among others.

At its core, esports is about players competing against each other in video games. These competitions can range from amateur local tournaments to professional leagues and international championships. Professional esports players are akin to athletes in traditional sports. They often play under contracts for specific teams and can earn substantial incomes through prize money, sponsorships, and endorsements. Like traditional athletes, they undergo rigorous training regimes and may have coaches, managers, and analysts supporting them.

Esports events can take place both online and offline. Large-scale events often happen in arenas with thousands of spectators, akin to traditional sporting events, and are also streamed online to millions of viewers worldwide.

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Key Trends in the Market

The widespread availability of high-speed internet across the world

The growing availability of high-speed internet across emerging economies, as well as developed countries, is one of the major factors supporting the esports market growth. Further, the growing trend of cloud gaming is surging the accessibility of gamers by enabling them to join from a variety of devices, aiding the market demand.

High-speed internet is crucial for streaming esports content. Faster internet speeds allow for high-definition, uninterrupted live streaming of esports events, making the viewing experience more enjoyable for fans worldwide. This enhanced accessibility and quality have contributed to the growing popularity of esports as a spectator sport.

With better internet connectivity, more people can participate in online gaming, which is the foundation of esports. In emerging economies, improved internet access opens up opportunities for a larger segment of the population to engage in gaming, potentially leading to a larger pool of esports talent and a broader audience.

The growing compatibility of esports with smartphones

Mobile esports are significantly gaining popularity due to their convenience and accessibility. Moreover, the rising affordability of smartphones coupled with the growing launches of esports compatible with smartphones are further aiding the esports market demand.

Mobile esports offer unparalleled convenience and accessibility. Unlike traditional PC or console gaming setups, mobile games can be played anytime and anywhere, appealing to a wider, more diverse audience. Modern smartphones have increasingly powerful processors, high-quality graphics, and large, responsive screens, making them suitable for high-end gaming experiences.

Game developers are not just adapting existing PC or console games for mobile; they are also creating mobile-specific esports titles. These games are designed with the mobile user experience in mind, optimising gameplay, controls, and graphics for smaller screens and touch-based interfaces.

The rising number of professional sports clubs in the esports arena

The increasing number of professional sports clubs penetrating the esports arena is heightening the competition, which is, in turn, surging interest in betting and increasing the esports market value.

Many professional sports clubs from traditional sports like football, basketball, and racing have started to create or sponsor their own esports teams or players. This involvement brings a level of legitimacy, professionalism, and mainstream appeal to the market.

The entry of these clubs heightens competition within esports, as they often bring substantial resources, fan bases, and marketing expertise. This increased competition and visibility surge interest in esports among a broader audience, including fans of traditional sports.

Favourable government schemes to legalise esports

The introduction of government initiatives aimed at legalising esports betting is anticipated to further fuel the market growth in the coming years. Legalisation brings esports betting under government regulation, which helps standardise practices and ensure fairness and transparency. This regulation can increase consumer confidence in betting platforms, leading to greater participation from a wider audience.

Legal recognition of esports betting enhances the legitimacy of the market. This can attract more investors and sponsors, as the legal framework provides a more stable and predictable environment for investment.

South Korea is emerging as a prominent market player

South Korea has emerged as a leading market for esports in the world due to the country’s developed gaming infrastructure, and high internet and smartphone penetration. The growth of e sports market in the country is further being fuelled by favourable government initiatives supporting the development of esports-specific arenas and the increasing number of esports tournaments and leagues held in the country.

Furthermore, the country has a deeply ingrained social gaming culture. PC Bangs (gaming cafes), where individuals can play computer games at an hourly rate, are widespread and popular. These spaces have played a crucial role in popularising gaming and esports among the general population, creating a strong community around gaming.

Innovative technology in the esports sector

Technological advancements and innovations are some of the crucial esports market trends expected to drive the market demand in the coming years. Technologies like artificial intelligence (AI) and blockchain are anticipated to analyse gameplay data, enhance viewer experience, improve player behaviour, improve the experience of viewers and players, and enable higher-resolution video streaming.

AI can also be utilised to improve the viewer experience by providing real-time statistics, predictive analytics, and personalised content. AI-driven algorithms can enhance live broadcasts with automated highlight reels, player performance metrics, and more immersive and interactive viewing experiences. AI technologies can help monitor player behaviour and ensure fair play. This includes detecting cheating or unsportsmanlike conduct, thereby maintaining the integrity of competitions.

Additionally, blockchain can be used to create unique digital collectibles and fan tokens, enhancing fan engagement. These tokens can provide fans with voting rights on minor decisions related to the team or access to exclusive content, creating a more engaged and loyal fan base.

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Esports Market Segmentation

Based on revenue streaming, the market segmentation includes sponsorship, advertising, merchandise and tickets, game publisher fees, and media rights, among others. On the basis of streaming type, the market is bifurcated into live and on-demand.

By gaming genre, the market is categorised into real-time strategy games, first-person shooter games, fighting games, and multiplayer online battle arena games, among others. The major regions in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global esports market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Tencent Holdings Ltd

• Activision Publishing, Inc

• Electronic Arts Inc.

• Gameloft SE

• Skillz Inc.

• Motorsport Games Inc.

• Gfinity PLC

• HTC Corporation

• FACE IT LIMITED

• Riot Games, Inc. 

• CAPCOM Co., Ltd.

• Others

Market Share by Revenue Streaming

The advertising segment, based on revenue streaming, accounts for a healthy esports market share. Through in-game advertising, a company can reach diverse audiences, which can lead to higher revenue generation. In addition, advertising during esports gaming can lead to a greater brand recall as it is a unique advertising technique, further driving the segment’s growth.

According to the market analysis, the sponsorship segment is likely to witness steady growth in the forecast period, as it is an effective way to gain the trust of loyal fans who are likely to spend on sponsored brands. Moreover, the increasing digital assets of major gaming companies are offering lucrative opportunities to the sponsorship segment.

Market Share by Gaming Genre

Based on the gaming genre, the multiplayer online battle arena games segment accounts for a significant share of the market for esports. This can be attributed to the emergence of high-quality and superior-resolution video games such as PUBG, League of Legends, and Call of Duty, among others.

Multiplayer online battle arena games are team-based and require greater coordination, multiple players, and intense competition, attracting a larger audience. As per the market overview, the fighting games segment is also expected to attain steady growth in the coming years owing to the growing popularity of high-end arcade games.

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Market Share by Region

As per the esports market analysis, the market in North America is considerably growing due to the high internet penetration in the region. Esports are increasingly preferred as a source of entertainment among the young tech-savvy population, and various organisations in the region are attempting to promote the creation of esports clubs in educational institutions like schools, universities, and colleges.

Meanwhile, the Asia Pacific is anticipated to emerge as a leading esports hub owing to the expanded gaming communities in the region. In countries like South Korea, Japan, China, and India, the number of esports players and enthusiasts is significantly increasing, buoyed attributed to the rising popularity of mobile gaming. In addition, the growing accessibility to 5G networks in countries like Vietnam, Thailand, and the Philippines is likely to fuel the market expansion in the coming years.

Competitive Landscape

Activision Publishing, Inc. was founded in the year 1979 with headquarters in California, United States, and is a leading video game publishing company which is a subsidiary of Activision Blizzard. The company has a strong foothold in the entertainment sector and has innovated groundbreaking games such as Call of Duty, Skylanders, and Crash Bandicoot, among others.

Electronic Arts Inc. is a leading video game-producing company which has developed renowned games such as Dead Space, NFS Unbound, Sims 4, FIFA 23, and Madden 23, among others. The company is headquartered in California in the United States and was founded in 1982. Electronic Arts delivers high-quality gaming and content for internet-connected consoles and various internet-enabled devices.

Gameloft SE is a prominent video gaming company which has developed multi-award-winning games for PC and consoles with over 70 million monthly active users across all its platforms. The company offers gaming for businesses as well as for individuals, with an aim to make gaming enjoyable and useful in forming connections. Gameloft was founded in the year 1999 and is currently headquartered in Paris, France.

Other esports market players include Tencent Holdings Ltd, Skillz Inc., Motorsport Games Inc., Gfinity PLC, HTC Corporation, FACE IT LIMITED, Riot Games, Inc., and CAPCOM Co., Ltd., among others.

Key Highlights of the Report