by The eSports market involves electronic sports events, leagues, and tournaments that are professionally played video games. It allows gamers to compete and play against each other through online platforms or physically in local arenas and stadiums. eSports games are quite entertaining to watch and players can become celebrities and earn prizes from tournaments. Most popular eSports games include League of Legends, Dota 2, Counter-Strike: Global Offensive, Overwatch, and Fortnite. The increasing popularity of online gaming and growing viewership of professional gaming tournaments on online streaming platforms has further accelerated the growth of the eSports industry.
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.
Key opportunities in the Esports Market Demand include growing brand partnerships and sponsorships from various brands and companies. Popular eSports players are now brand ambassadors for top companies which want to tap the young gaming audience. Growing prize pools and opportunity to earn are also attracting more professional gamers and viewers.
Advancements in cloud gaming technologies are also fueling the growth of eSports. Technologies like cloud gaming allows seamless streaming of eSports matches and tournaments on any device without needing high-end gaming PCs or consoles. This is making eSports more accessible.
Market Drivers
The increasing popularity of online streaming platforms for gaming like Twitch and YouTube gaming has significantly boosted the viewership of eSports events and leagues. More viewers means more sponsorships and partnerships for the industry. Rising internet and smartphone penetration globally has also enabled greater access and participation in online eSports activities and competitions.
Current challenges in eSports Market
The eSports market faces numerous challenges in its growth trajectory. The fast rising popularity among the younger demographic has led to concerns around addiction and the mental health impacts of excessive gaming. Security risks around user data privacy and protection are also an ongoing challenge given the sensitive personal information often collected and shared on gaming platforms. Monetization remains a challenge for industry stakeholders to optimize revenues from various streams including advertisements, sponsorships, merchandise and ticket sales for live events. Standardization of regulations around player eligibility, competitions structure and integrity are yet to be unified across regions and games.
SWOT Analysis
Strength: Large and growing global fanbase and viewership numbers driving high engagement and revenues. Interactive formats keeping audiences highly engaged.
Weakness: Concerns around gaming addiction, impacts on physical/mental health. Security and privacy risks from data collection on platforms.
Opportunity: Scope for expansion into eSports betting and fantasy gaming. Monetization of user data and diversifying revenue streams.
Threats: Stringent regulations around loot boxes and monetization practices in some regions. Piracy and copyright issues with game streaming content.
North America accounts for the largest share in the global eSports market in terms of value. The U.S. is home to most prominent professional teams and leagues. Presence of major tech companies investing in infrastructure and tournaments is driving market growth.
China has emerged as the fastest growing regional market for eSports. Wide popularity of games like Honor of Kings have enabled monetization through in-game purchases. Streaming platforms have enabled professionalization of gaming as a career choice attracting talent and investments.
