Global Esports Market Outlook to 2030

Global Esports Market Overview

• The global esports market was valued at USD 2 Bn in 2023 anticipated to reach a market size of USD 5.5 Bn in 2029 driven by increasing investments and sponsorships, technological advancements, and youth culture and digital natives.

• The market is highly consolidated with Twitch ruling more than half of the market. Other leading esports streaming platforms include YouTube Gaming, Afreeca TV, and Naver TV.
• In November 2023, YouTube launched a new feature called 'Playables' that allows its Premium subscribers to play a variety of games directly on the YouTube platform, without the need for additional downloads or installations.

Global Esports Current Market Analysis

• APAC as the dominant region: The Asia Pacific region, led by powerhouse nations like China, Korea, and Japan, drives the highest demand for esports globally, fueled by strong gaming cultures, massive fan bases, large and engaged audiences, and infrastructure and investment.In 2023, China led the global esports scene with 250 million active gamers. The Shanghai International New Cultural and Creative E-sports Center is a major project currently under construction in Shanghai, with an estimated cost of around $900 million.This center is designed to host over 300 international esports competitions annually and accommodate 10,000 visitors daily and is projected to be completed by 2024.
• North America as emerging region: North America emerges as the fastest-growing market for esports, fueled by robust investment and sponsorships, media and broadcasting deals, and educational and collegiate programs. In 2023, Investment in the global esports industry reached USD 1.2 billion. In the USA, Major tech companies like Microsoft, Intel, and NVIDIA invested over USD 500 million in esports partnerships and sponsorships in 2023. The NHL earns USD 625 million annually from seven-year contracts signed in 2021 with ESPN and Turner Sports to last until the 202728 season.
• China as the dominant country: China holds a leading position in the Asia-Pacific esports market, consistently maintaining a market share that surpasses that of other countries in the region. This dominance is driven by a large and engaged gaming population, significant investment in esports infrastructure, and strong government support for the industry. In June 2023, DG Intel Esports Center opened in Beijing, this venue covers over 14,000 square meters and is designed to host numerous esports events, including 40 to 50 League of Legends Pro League (LPL) matches annually. Between 2020-2021, Hangzhou in China invested USD 2.22 billion to build 14 esports facilities.

Global Esports Market Segmentation

The Global Esports Market can be segmented based on several factors:

• By Streaming Type: The global Esports market segmentation by streaming type is classified into live streaming and on-demand streaming. In 2023, live streaming was the dominant segment in global esports market due to several key factors. Live streaming offers real-time engagement and interaction with audiences, which enhances viewer retention and brand loyalty.

• By Game Genre: The global Esports market segmentation by game genre is classified into first person shooter games, multiplayer online battle arena games, and real-time strategy games. In 2023, first person shooter games were the dominant segment in the market due to several key factors. First person shooter games have a broad appeal and attract a large, dedicated audience, providing a lucrative platform for advertisers.

• By Device: The global Esports market segmentation by device is classified into smartphones, gaming console, smart TV, and desktop/ laptop/ tablets. In 2023, smartphones were the dominant segment in game genre due to several key factors. The widespread use of smartphones and tablets ensures a vast and accessible user base for mobile marketing campaigns.

Global Esports Market Competitive Landscape

• Twitch: In January 2024, Twitch launched Enhanced Broadcasting Beta to elevate the streaming experience: This new feature introduces advanced tools and improved streaming capabilities, enhancing video quality and interactivity. Twitch also formed strategic partnerships with eSports organizations, game developers, and sponsors to secure exclusive broadcasting rights, host major tournaments, and promote new releases.
• Afreeca TV: Afreeca TV expanded its content portfolio to include a wide range of categories such as music, talk shows, cooking, and sports. This strategic move broadened the platform's appeal, attracting a diverse audience with varied interests and increasing its user engagement and market reach beyond its traditional gaming-centric base.
• Naver TV: In January 2024, Naver announced that its game streaming platform "CHZZK" will be open for anyone to broadcast: This decision aims to democratize access to game streaming, allowing a broader range of users to create and share content. By opening the platform to all, Naver TV enhances its competitive edge and fosters a more inclusive and diverse streaming community.

Global Esports Industry Analysis

Global Esports Market Growth Drivers:

• Increasing Investments and Sponsorships: The esports market is attracting significant investments from traditional venture capital firms, strategic investors, and private equity firms, aiming to connect with a highly engaged and targeted audience. In 2022, Savvy Games Group made a substantial investment of USD 34.5 billion to acquire leading esports and gaming companies. his large-scale investment highlights the growing recognition of the esports industry's potential for high returns and its appeal to a dedicated and active fanbase.
• Technological Advancements: Improvements in graphics, faster internet speeds, and sophisticated streaming platforms have simplified player participation and enhanced the viewing experience for esports, contributing to the industry's growth. The 5G Wild Rift Cup demonstrated the potential of this technology by enabling influencers and professional players to compete simultaneously from different locations in Spain on a commercial 5G network
• Youth Culture and Digital Natives: Esports resonates strongly with younger demographics, particularly digital natives who have grown up immersed in technology and gaming culture. As younger generations increasingly prefer interactive and participatory forms of entertainment, esports stand out as a dynamic and engaging activity that aligns with their preferences. Out of the total worldwide e-gaming consumers, 65% of esports fans are between the ages of 18-34, while 38% are women.

Global Esports Market Challenges:

• Nerd Phenomenon: Esports, despite its rapid growth, still appeals to a niche audience with specific interests and preferences. This dedicated fanbase can be difficult for marketers to penetrate and understand, even for those with prior knowledge of the sector. The specialized nature of the content and the deep community ties within esports create barriers for newcomers who may struggle to connect with the audience effectively.
• Lack of Standardization: The esports industry faces authenticity and standardization issues in tournaments, making it difficult for transitioning marketers to distinguish legitimate events from potential scams. Persistent challenges include player compensation, contractual disputes, and suboptimal brand partnerships, affecting performance and marketing effectiveness.

Global Esports Market Future Outlook

The Global Esports market is expected to reach a market size of USD 5.5 Bn by 2029 showing substantial growth driven by increased professionalization, diverse revenue streams, and community and fan engagement.

Future Market Trends

• Increased Professionalization: The establishment of more structured leagues and tournaments will bring greater professionalism to the industry. This will include standardized regulations, player contracts, and improved training facilities, further legitimizing esports as a career path.
• Diverse Revenue Streams: With the increasing mainstream appeal of esports, more non-endemic brands will enter the market, driving up sponsorship and advertising revenue. This will be complemented by innovative advertising formats, such as in-game ads and interactive content.