Esports Market Size, Share Global Analysis Report, 2024 – 2032.

Industry Insights

[214+ Pages Report] According to Facts & Factors, The global esports market size was valued at USD 1,703.64 million in 2023 and is predicted to surpass USD 8,594.60 million by the end of 2032. The esports industry is expected to grow by a CAGR of 19.70% between 2024 and 2032.

Market Overview

Esports is an organized competitive video game streamed online or held offline and attracts a huge audience. Esports events involve different teams and individual players. Many popular esports events include League of Legends, Call of Duty, Overwatch, StarCraft II, PUBG, and many others.

Esports events generate huge amounts of money through media rights, ticket sales, sponsorship deals, merchandising, and many others. These events train players rigorously like traditional athletes to earn millions of dollars. Esports are becoming popular because of the growing interest of young tech-savvy audiences in streaming games. Also, these events are easy to access with a computer or a console which further makes them more appealing.

Key Insights

• As per the analysis shared by our research analyst, the global esports market size is estimated to grow annually at a CAGR of around 19.70% over the forecast period (2024-2032).
• In terms of revenue, the global esports market size was valued at around USD 1,703.64 million in 2023 and is projected to reach USD 8,594.60 million by 2032.
• Growing popularity of esports gaming is driving the growth of the global esports market.
• Based on the gaming genre, the first-person shooter games segment is growing at a high rate and is projected to dominate the global market.
• Based on revenue streaming, the media rights segment is anticipated to grow with the highest CAGR in the global market.
• Based on the streaming type, the live segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing popularity of esports gaming is driving the growth of the global market.

Esports games are entering mainstream entertainment, which is a major reason for the high growth rate of the global esports market. Easy accessibility of these games with mobile phones, PCs, and consoles is widening the audience base in the market. High penetration rates of affordable smartphones and high-speed internet are further expected to propel the growth of the industry.

Also, the fast expansion of streaming platforms is further driving the passion for esports content. Many emerging platforms, like Facebook, YouTube Gaming, and Twitch, are the favorite avenues for gamers, and they are also likely to improve consumer engagement rates. Brands are also investing heavily in esports, which is likely to revolutionize the market. Companies like Red Bull, Coca-Cola, and Intel are partnering with the Esports League, which is also likely to improve sponsorship revenues in the coming years.

Additionally, the boom of mobile esports is likely to contribute immensely to the rise of the market. Mobile games like Free Fire, Mobile Legends, and PUBG Mobile have a strong fan base, particularly in regions like Asia Pacific. Therefore, all these factors are likely to contribute immensely towards the growth of the market. For instance, Nvidia and Microsoft collaborated to come up with Xbox PC games in 2023. This strategy will get Microsoft more cloud games from Activision Blizzard that will be streamed on GeForce NVIDIA.

Restraints

• Monetization challenges are likely to hamper the growth of the global market.

Although the viewership of esports is constantly growing, there are still many monetization challenges. Also, esports sometimes struggle to generate consistent revenue across all seasons. Their dependence on sponsorship deals further makes them risky. Therefore, these factors are expected to slow down the growth of the esports industry.

Opportunities

• Involvement of traditional sports is expected to foster growth opportunities in the global market.

The growing inclusion of traditional sports teams in esports leagues is expected to foster new growth opportunities in the global esports market. Their involvement has brought esports into the mainstream, thereby garnering more attention and credibility.

Also, the globalization of esports is expanding, which is another crucial factor for the high growth of the industry. Esports is becoming more popular among younger demographics. This cultural shift towards online entertainment is further fueling the growth of the industry. The Millennium and GenZ populations consume esports content more than any traditional sports. For instance, Rooter Sports Technologies Pvt Ltd successfully took over Sky Sports' media rights for one year in 2022. Sky Sports is a popular tournament organizer in South Asia.

Challenges

• Lack of standardization is a big challenge in the global market.

Esports do not have standardized regulations or governing bodies, which leads to non-uniform standards in competition integrity, fair play, contract enforcement, and many other areas. Cheating, match-fixing, and many other integrity issues also damage the credibility of esports leagues. Therefore, such a landscape is a big challenge in the esports industry.

Segmentation Analysis

The global esports market can be segmented into gaming genre, revenue streaming, streaming type, and region.

On the basis of gaming genre, the market can be segmented into multiplayer online battle arena games, fighting games, first-person shooter games, real-time strategy games, and others. The First Person Shooter (FPS) game segment accounts for the largest share of the esports industry during the forecast period. The growing popularity of FPS games like Call of Duty, Rainbow Six Siege, and many others is driving the growth of the segment. These are fast-paced games that appeal to all types of audiences, ranging from casual to professional gamers.

Also, these have well-established structures and ecosystems that attract millions of viewers globally. Streaming platforms like Twitch and YouTube gaming hold high engagement rates, which is profitable for both these sponsors and advertisers. This strategic thinking and quick reflexes are making it entertaining. Additionally, these games also have some regional dominance. Europe and North America are strong and leading regions in FPS games. Therefore, all these factors are likely to contribute to the growth of the segment.

On the basis of revenue streaming, the market can be segmented into media rights, publishers fees, merchandise & tickets, advertising, sponsorship, and others. The Media rights segment is the fastest-growing segment in the global esports market. Esports tournaments and leagues help media make these events valuable for broadcasters and streaming platforms. There is a constant increase in the viewership of these events, and they offer profitable media rights.

Many mainstream sports broadcasters like Sky Sports and ESPN are also entering into esports events, which is likely to increase the growth of the segment. Globalization of esports is making it a primary content for media, and therefore, many regions are coming up with more localized broadcasting, which is also expected to positively influence the growth of the segment.

Streaming services monetize content via subscription, advertisements, & pay-per-view models and, therefore, encourage people to pay premium rates for these broadcasters. These are generally long-term contracts between esports organizations and media that continue over multiple seasons and, therefore, generate higher revenue.

On the basis of stream type, the market can be segmented into video-on-demand and live. The live segment is likely to dominate the esports industry during the period. Growing in-person esports events are the major factor in the segment's high growth rate.

Such events gather millions of attendees, generating heavy revenue from two streams, namely, digital broadcast and ticket sales. Live experiences bring fan engagement, excitement, and unique value to the table, which cannot be achieved with digital formats.

Live sports events have a much higher engagement rate as they foster real-time chats, sponsorships, and many other things. Interactive platforms like YouTube Gaming and Twitch are also expected to revolutionize the market by offering live viewership to fans where they can communicate with streamers. Heavy investments from sponsors, particularly in live esports events, are also likely to promote the growth of the segment.

Report Scope

Regional Analysis

• North America to dominate the global market during the projected period.

North America accounts for the largest share of the global esports market during the forecast period because of the fast expansion of esports into the mainstream entertainment sector. The US is the largest market in the region. Increasing corporate and venture capital investments in esports organizations and events is further expected to propel the growth of the market.

Additionally, the region attracts heavy investments and sponsorship from brands in the sportswear, beverage, and financial sectors. Cities like New York and Los Angeles also have dedicated esports arenas and other established infrastructures that are likely to support the growth of the regional market. Many people also view esports as a career path in North America, which is likely to widen the scope of the regional market.

Asia Pacific is also expected to witness a high growth rate in the esports industry in the coming years because of the changing market landscape in the region. The presence of popular mobile esports like PUBG Mobile, Honor of Kings, and Mobile Legends are the major drivers of the regional market.

Also, APAC has a diverse, large, and engaged audience that actively participates in viewing and streaming activities in online gaming, which is also expected to support the growth trajectory of the regional market. South Korea is also a pioneer region with a strong gaming culture. The rising trend of esports betting in APAC is also likely to foster many growth opportunities in the market.  For instance, The Korean Esports Association entered into a three-year sponsorship with SK Telecom in 2022. This agreement will train sports teams from Korea for the Asian Games.

Competitive Analysis

The key players in the global esports market include:

• Valve Corporation
• Tencent Holding Limited
• NVIDIA Corporation
• Nintendo of America Inc.
• Modern Times Group (MTG)
• Intel Corporation
• HTC Corporation
• Gameloft SE
• Electronic Arts Inc.
• Activision Blizzard Inc.

For instance, Xbox Canada collaborated with Piadia in 2023. Latter is a women-led enterprise extending its offering in esports and gaming platforms. This partnership is expected to fill the gender gap by providing a safe place to connect.       

The global esports market is segmented as follows:

By Gaming Genre Segment Analysis

• Multiplayer Online Battle Arena Games
• Fighting Games
• First Person Shooter Games
• Real-Time Strategy Games
• Others

By Revenue Streaming Segment Analysis

• Media Rights
• Publishers Fees
• Merchandise & Tickets
• Advertising
• Sponsorship
• Others

By Streaming Type Segment Analysis

• Video-On-Demand
• Live

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America