The global esports market size to reach USD 2.7 billion by 2025, growing at a CAGR of over 16% over the forecast period. The global industry growth is projected to increase with increasing viewership, centralization of teams, and the continuous adoption of traditional franchise-style leagues.
The creation of franchise-based leagues is one of the most crucial developments in esports industry. There are numerous benefits to the franchise model. One of its biggest advantages is that it gives potential sponsors and advertisers a specific area to invest in, instead of choosing among the hundreds of tournaments that take place across the US. The success of franchise-based esports leagues is critical for the future of the sport. For universities, these leagues will create a stable entity for graduates who would like to pursue a career in esports. College programs for professional esports have become increasingly popular over the last five years. Many small private institutions view gaming as a way to differentiate themselves from larger institutions and attract more students during enrollment struggles. For instance, the University of Akron is investing in three esports facilities and dedicating 5,200 square feet to competitive gaming with 90 gaming PCs and 30 next-generation consoles.
The global esports market has attracted investments of every size by way of developing revenue-generating opportunities from existing structures. Familiar investment methods, such as venture capital and private equity, have helped propel the esports industry and propel the rapid growth of investment in primary categories in the gaming industry.
- The sponsorship segment will emerge as the leading contributor to the esports market, observing an incremental growth of over USD 890 million by 2025
- The increase in audience and participants is a significant factor for esports market growth rate with viewership expected to grow to 644 million, which include 347 million occasional viewers and 297 million esports enthusiasts by 2022
- North America will witness an incremental growth of over USD 630 million due to increased investments from game publishers, venture capitalists, and traditional media
ESPORTS MARKET SEGMENTATION
This industry analysis report includes a detailed segmentation by
INSIGHTS BY REVENUE
The esports market has shown tremendous growth in terms of revenue and viewership in the last few years. In 2019, out of the total esports revenue of USD 1.1 billion, sponsorships contributed USD 667 million in revenue, which was the highest. With player wages rising, the introduction of new sponsors and sponsorship sectors is critical for the future commercial success of electronic sports. Although it’s still in its infancy stage and has an irregular events season structure, sponsorship provides a streaming platform for brands to create their events and become rights holders.
The esports revenue from the media right segment will double by 2024. The segment is likely to become the largest source of esports revenue streams as massive audiences, and associated advertisement revenue from established online video platforms such as Twitch, YouTube, Douyu, and Huya will support the growth of media rights fees paid to top publishers.
INSIGHTS BY GAMES
Multiplayer online battle arena (MOBA) games segment will constitute the largest esports market share in 2025. MOBAs are witnessing continuous growth in emerging regions, especially in Latin America. Latin America is in the perfect position for a major upswing when it comes to the market. The region has 45 million viewers, with profits soaring close to USD 12 million in 2019. Players are more likely to spend money if they can engage in player vs player mode. Therefore, the growth of Player versus Player (PvP) games is expected to rise in future years.
INSIGHTS BY E-PLATFORM
Personal computers are currently the leading platform in the esports market. PC gaming is fast becoming a favorite choice among gaming enthusiasts, and this shift can be attributed to factors such as the young population, quality of gameplay, affordability, availability of top-end hardware and software, and improved internet bandwidth. With more than 60% of the people below 35 years of age, India has the largest potential market for the gaming segment. The increasing popularity and the acceptance of competitive gaming have attracted hardcore PC users, with many wanting to build their systems.
The global esports market is growing with the involvement of advanced mobile app technologies. The trend of the growth is helping to develop new industries with new possibilities from these prospects. Businesses are trying their hands at esports with attractive features in a mobile app.
INSIGHTS BY GEOGRAPHY
Countries such as the US, China, and South Korea have been showing impressive growth in the development of esports games, the number of players, audience, and infrastructure. In recent years many arenas have been built across the globe, with well-designed sitting arrangements, and the arenas are well equipped with gaming equipment, lighting, screens, and supporting equipment. China's esports industry has the world's largest number of gamers. Over 600 million people play games on phones, computers, or game consoles. However, the US remains the most important market with large average spending per customer, high gaming penetration, and young and responsive demographics. The growth in the US is still strong, with respect to the increasing viewership and audience figures. In recent years, the APAC has emerged as the most potential market with the growing number of gamers as well as esports tournaments.
Europe has been one of the most important regions in the development of the electronic sports market. Some of the first organizations that made esports popular, especially in the West, originate from Europe. Electronics Sports League is one of the world’s largest esports organizations, which has its origins in Germany. The company has helped build and shape esports from small community events to record-breaking events, including the Intel Extreme Masters in Katowice and ESL One in Cologne. Europe accounts for almost one-third of all global esports revenues and hosts more than 70 million viewers.
INSIGHTS BY VENDORS
Electronic sports is a booming industry, where skilled video gamers play competitively. As baseball, basketball, and football are competitive, esports encompasses competition across a variety of video games. This industry includes traditional sports-related games such as NBA2K and FIFA and notably games such as League of Legends, Counter-Strike, and Dota. Valve, Activision, Riot Games, and EA have, for many years, brought to audiences some of the most detailed, deep, and competitive multiplayer games. These publishers set the standard and create experiences that are brimming with competitiveness. Blizzard is well experienced in the world of professional gaming. The games such as Starcraft, Warcraft, and now Overwatch makes for some of the entertainment, popular, and lucrative pro-gaming scenes.
The global esports market research report includes revenue and forecast insights for the following segments:
Segmentation by Revenue
- Game Publisher Fee
- Merchandize & Tickets
- Media Rights
- Multiplayer Online Battle Arena (MOBA)
- Player vs. Player (PvP)
- First Person Shooters (FPS)
- Real Time Strategy (RTS)
- Salons & Spas
- Mobile & Tablets
- North America
- South Korea
- Latin America
- Middle East & Africa
- South Africa