Market Insights

The Esports market was valued at USD 2.0 Billion in 2020, and it is expected to reach a value of USD 7.2 Billion by 2027, at a CAGR of 24.83% over the forecast period (2020 - 2027).

The esports market will register positive growth due to the rising demand from millennials and the younger generation. Furthermore, rising investments, increasing audience reach, and live streaming of major sports tournaments are additional factors driving the growth of the market. The year 2020 led to the development of mobile esports, especially in the Asia Pacific region. Moreover, live esports is now becoming popular and recorded more than 12 million viewers.

Segmental Analysis

Professionalization in the industry has created lucrative opportunities for game developers, gamers, influencers, and event organizers. Millennials are considering esports as a professional career owing to the rising popularity of gaming tournaments. Moreover, educational institutions have started dedicated esports curriculum to develop skilled professionals.

This report provides in-depth analysis of Global Esports market. We have analyzed 20+ data points that include product price trends, consumer purchase patterns, company annual sales performance, COVID-19 impact on distribution channels, parent industry performance, regional trends, and technological innovations, for tracking the Global market size and performance in the recent years.

Global Esports Market Segmentation

The Global Esports market is segmented based on Revenue model, type, Streaming platform, Audience, Application and Region. Based on Revenue model it is categorized into: Sponsorship, Advertising, Merchandise Tickets, Publisher Fees, Media Rights. Based on type it is categorized into: Multiplayer Online Battle Arena (MOBA), First-Person Shooter (FPS), Real-Time Strategy (RTS), Other. Based on Streaming platform it is categorized into: Twitch , YouTube , Others. Based on Audience it is categorized into: Tournament organizers, Alliances, Game publishers, Sponsors, Esports investors, Research institutes and organizations, Analysts and strategic business planners, Market research and consulting firms. Based on region it is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.

Regional Insights

Global Esports Market: Impact of COVID 19

The Covid-19 pandemic led to the cancellation of several tournaments and leagues, thus impacting the esports market. The organizers are now hosting the event in a closed stadium, streaming it online for the audiences. The industry will witness modest growth in 2020. For instance, Organizers canceled the Pokémon Championship Series, Combo Breaker, and EPICENTER Major 2020. As a result, the revenue from merchandise and ticket sales declined..

Key Trends in Global Esports Market

• One significant trend that is driving the growth of the market is the popularity of video games. Changing entertainment preferences of the customers, wherein they now demand video and online games for their entertainment purposes, is fuelling the growth of the market. Moreover, factors such as the development of technologies and the rising per capita income of the people support this growth.
• Another key trend is the shift of video gaming from a mere hobby to a professional career. Hence, the changing gaming landscape is adding to the growth of the market. Immense esports tournaments engage millions of fans watching in fixation, the same way as in conventional sports. The investments in the market by brands and celebrities are increasing the revenue stream of the players.
• The free-to-play gaming model is gaining popularity and driving companies' revenues. In this model, the game can be played free of cost but it has some features or upgrades that unlock in the paid version, this leads to great curiosity among the users and contributing to the overall growth of the esports market in the given forecast period. Fortnite, League of Legends, and Counter-Strike are few games that feature such a business model.

Global Esports Market: Regional Dynamics

North America constituted the largest share in the revenue. This was because the USA was at the forefront in this region. With the franchised North America League of Legends Championship Series (NA LCS) and Overwatch League, investment and growth are expected to continue in the coming years. China will also witness rising growth in the eSports market as it is gaining popularity among the younger generations. Apart from this, the support of the government is also driving the growth. The Asia Pacific is also expected to register positive growth shortly due emergence of China and South Korea as esports hubs.

Market Dynamics

Global Esports Market: Competitive Landscape

The market is characterized by the presence of a few well-established players. New product launches, partnerships and investing in research development have been a key business strategy. Some of their recent developments are as follows:

• In March 2021, Electronic arts partnered with Sliver rains game, to provide its gamers with a seamless user experience, with bold and creative games.
• In October 2019 Electronic Arts Inc., in partnership with Fédération Internationale de Football Association (FIFA), announced the launch of the EA SPORTS FIFA 20 Global Series on The Road to the FIFA eWorld CupTM.
• In 2019, South Korean telecom operator SK Telecom Co., Ltd. partnered with Comcast Corporation to form an esports company. Such developments and initiatives are expected to propel the industry growth.

Key players in Esports market are:

• Activision Blizzard, Inc.
• Valve Corporation
• Tencent Holding Limited
• Electronic Arts Inc.
• Gameloft SE
• Nintendo of America Inc.
• NVIDIA Corporation
• Modern Times Group
• Turner Broadcasting System
• Gfinity

Scope of the Report

The study provides an analysis of the Global Esports Market in the emerging and established markets across the globe, including North America, Europe, Asia-Pacific, South America, and Middle East Africa. For each segment, the market sizing and forecasts have been done on the basis of value.