The Esports Market is Expected to Grow at a CAGR of Over 16% During the Period 2019–2025.
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Electronic sports is an emerging vertical of the gaming space; however, it should not be combined with virtual sports or fantasy sports. It is defined as multiplayer video gaming, played by professional gamers at a competitive level. Technological innovations in the gaming industry is a key growth driver. Advances such as facial recognition, sound recognition, gesture control, graphics, virtual reality (VR), and augmented reality (AR) have completely changed video games and have encouraged gamers to play such games.
As technology advances, the thrill of playing games has also increased with a more visual stimulus, creativity, and satisfaction. AR and VR have revolutionized the esports industry. AR provides the audience with a mesmerizing stadium experience of leagues and competitions. With the use of these technologies, participants can enjoy the enhanced experience as they are physically active and involved in the game. VR is expected to be undoubtedly a strong drive for competitive experiences as the technology and software continue to upgrade. Currently, there are a few active competitive leagues that use VR. Therefore, developers are now focusing on AR/VR technology to differentiate games in the market.
The following factors are likely to contribute to the growth of the esports market during the forecast period:
- Technological Innovations in the Gaming Industry
- Increase in Internet Penetration
- Role of Association and Government Involvement
- Increased Awareness of Esports
The study considers the present scenario of the esports market and its market dynamics for the period 2019−2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent companies operating in the market.
ESPORTS MARKET: SEGMENTATION
This research report includes a detailed segmentation by revenue, games, e-platform, and geography. 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 $1.1 billion, sponsorships contributed $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 platform for brands to create their events and become rights holders.
The revenue from the media right segment is expected to double by 2024. The segment is likely to become the largest source of esports revenue 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.
Multiplayer online battle arena (MOBA) games have become incredibly popular among video gamers in recent years. MOBAs are witnessing continuous growth in emerging markets, especially in Latin America. Latin America is in the perfect position for a major upswing when it comes to esports. The region has 45 million viewers, with profits soaring close to $12 million in 2019. Mexico was the second country that generated more audiences in the region after Brazil. While the MOBA segment in Latin America is expected to grow at a CAGR of over 20% during the forecast period, the PC and console segments are projected to observe grow rates of over 20% each for the same period.
First person shooter (FPS) games are one of the most popular genres. They have been around for decades. These games offer intense action and are simple to understand and pick up compared to RTS and MOBA games. They have been at the forefront of professional gaming, and they continue to play a big role in the esports industry. The popularity of watching videogame played on YouTube, and Twitch has shown that most videogames are appealing for audience experience.
Personal computers are currently the leading platform in esports. 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.
Market Segmentation by Revenue
- Game Publisher Fee
- Merchandize & Tickets
- Advertisement
- Sponsorships
- Media Rights
Market Segmentation by Games
- Multiplayer Online Battle Arena (MOBA)
- Player vs. Player (PvP)
- First Person Shooters (FPS)
- Real Time Strategy (RTS)
- Salons & Spas
Market Segmentation by E-platform
- PC-based Esports
- Consoles-based Esports
- Mobile & Tablets
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 esports 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 esports market has emerged as the most potential market with the growing number of gamers as well as tournaments. Besides, several developing countries in Asia have emerged as a lucrative esports market, including the Philippines, India, Australia, Taiwan, Hong Kong, and Vietnam.
Market Segmentation by Geography
- Europe
- Germany
- UK
- France
- Poland
- Sweden
- North America
- US
- Canada
- APAC
- South Korea
- China
- Japan
- Australia
- India
- Malaysia
- Latin America
- Brazil
- Mexico
- Argentina
- Chile
- MEA
- UAE
- Egypt
- Morocco
- South Africa
INSIGHTS BY VENDORS
Esports is a booming global 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 gamers 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.
Key Vendors
- Activision Blizzard
- Electronic Arts
- Modern Times Group (MTG)
- Take-Two Interactive Software
- Tencent
- Valve Corporation
Other Prominent Vendors
- Supercell
- Nintendo
- Hi-Rez Studios
- Epic Games
- Torque Esports
- Bandai Namco Entertainment
- Nival
- Zeni Max
- Psyonix
- Super Evil Megacorp
- GAMEVIL
- Capcom
- Crytek
- Inno Games
- Deep Silver
- Gameforge
- Konami Holdings Corporation
- Zynga
- Kabam
- Rovio Entertainment
- Wargaming Group Limited
- Ubisoft
- Sega
- Neowiz Games
- NCSoft
- Microsoft Studios
- Bethesda Softworks
- Aksys Games
KEY MARKET INSIGHTS
- The analysis of the esports market provides sizing and growth opportunities for the period 2020–2025.
- Provides comprehensive insights on the latest industry trends, forecast, and growth drivers in the market.
- Includes a detailed analysis of growth drivers, challenges, and investment opportunities.
- Delivers a complete overview of segments and the regional outlook of the market.
- Offers an exhaustive summary of the vendor landscape, competitive analysis, and key strategies to gain a competitive advantage.
Table of Contents
1 Research Methodology2 Research Objectives3 Research Process
Samples
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Companies Mentioned
- Activision Blizzard
- Aksys Games
- Bandai Namco Entertainment
- Bethesda Softworks
- Capcom
- Crytek
- Deep Silver
- Electronic Arts
- Epic Games
- GAMEVIL
- Gameforge
- Hi-Rez Studios
- Inno Games
- Kabam
- Konami Holdings Corporation
- Microsoft Studios
- Modern Times Group (MTG)
- NCSoft
- Neowiz Games
- Nintendo
- Nival
- Psyonix
- Rovio Entertainment
- Sega
- Super Evil Megacorp
- Supercell
- Take-Two Interactive Software
- Tencent
- Torque Esports
- Ubisoft
- Valve Corporation
- Wargaming Group Limited
- Zeni Max
- Zynga
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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