The eSports market refers to organized video game competitions, particularly between professional players. It involves multiplayer video games that can be played competitively against other human opponents, both online and offline. Some of the popular eSports titles include Dota 2, League of Legends, Counter-Strike: Global Offensive, Overwatch, and Fortnite. The eSports industry has grown rapidly in recent years and garnered huge fan followings. eSports tournaments are live-streamed on platforms like Twitch and YouTube with viewership comparable to conventional sport broadcasts.
The Global eSports Market is estimated to be valued at US$ 2123.48 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the eSports market are Saipem, Subsea 7 S.A., McDermott International, and TechnipFMC plc. The growing popularity of video games and competitions has created lucrative opportunities for market players to organize professional tournaments and leagues with attractive prize pools and sponsors.
The increasing availability of high-speed internet and growing online viewership of eSports events present key opportunities in this market. Live-streaming platforms have enabled easier accessibility of tournaments to a global audience.
Several markets have invested in developing local leagues and infrastructure to support Esports Market. Countries in Asia like China, South Korea and Southeast Asia have emerged as dominant markets. North America and Europe remain other major regional markets but growth is expected to be higher in emerging markets.
Market Drivers
Growing popularity and acceptance of eSports as a legitimate sport is one of the key drivers of growth in this market. Rising millennial interest in video game culture and competitive gameplay has boosted viewership and revenues. Additionally, participation of corporate sponsors as well as integration of eSports into educational institutions is promoting the growth of the market.
PEST Analysis
Political: At present, eSports is not legally regulated as a professional sport in most parts of the world. However, increasing recognition is encouraging applicable sports betting and visa regulations.
Economic: Declining hardware and software costs along with high internet penetration are major drivers of eSports market growth. Prize money and sponsorships are increasing competition and professionalization of the industry.
Social: Growing popularity of video games and technology among younger generations is fueling spectator interest and participation in eSports. However, issues around influence of violence and addiction persist.
Technological: Advancements in gaming platforms, audio-visual broadcasting technology and 5G networks are enhancing the end-user experience of both playing and watching eSports. Real-time analytics are improving player skills and team strategies.
Geographical Regions of Concentration
The market in terms of value is highly concentrated in Asian countries like China, South Korea and Japan. This is owing to widespread popularity of video games, high-speed internet infrastructure and strong community support systems. North America is another major region driven by the US, owing to competitive infrastructure and sponsorships. Western European countries like Germany, France and the UK are also significant markets.
Fastest Growing Region
The eSports market is witnessing the fastest growth in South East Asian countries like Indonesia, Thailand and Vietnam. Despite being at a relatively nascent stage, factors like young demographics, rising disposable incomes, improved digital connectivity and cultural acceptance are propelling the market in this region at a CAGR above 10% over the forecast period.
