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2021

Esports Market

Esports Market Size, Share, Competitive Landscape and Trend Analysis Report, by Application, Streaming Type, Device Type, Revenue Stream : Global Opportunity Analysis and Industry Forecast, 2020-2030

IC : Software and Services

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Author's: Rachita Rake & Shreyas Wadodkar | Onkar Sumant
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Esports Market Statistics, 2030

The Esports market size was valued at $ 942.34 million in 2020, and is projected to reach $4,758.99 million by 2030, growing at a CAGR of 17.5% from 2021 to 2030. Esport is one of a kind of online sport in which two or more competitors compete using online video games in a multiplayer environment. Functionally, it is same as traditional sports. Esport is competitive video gaming where skill and professionalism of players is the most important factor. The pro gamers which played at this level know the games very well and they are pro players of this game, much like a professional footballer or athlete would in their respective fields. Esport players can either play one-on-one against one another or in teams.

E-sports-Market

By device type, the gaming console segment dominated the Esports market share in 2020, and is expected to continue this trend during the forecast period. The growth of the segment is attributed to numerous benefits provided by this device type such as high quality of gamming, which results in much better gaming experience, high security, and others. However, the smartphone segment is expected to witness highest growth in the upcoming years. Furthermore, the adoption of smartphone for playing Esport is considerably increasing in end users due to its wireless portable and cost-effective operation, which notably contributes toward the growth of the global market.

Esports Market
By Streaming Type
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Live streaming type is projected as one of the most lucrative segments.

On the basis of revenue stream, the game publisher fee segment dominated the overall Esports market in 2020, and is expected to continue this trend during the forecast period. This is attributed to increase in adoption of Esport in the gaming industry to gain strategic as well as competitive advantage over their competitors. In addition, it provides full gaming solution and platform for tournament of the e-sport, which drives the growth of the market. However, the digital advertisement segment is expected to witness the highest growth, as digital advertisement allows the tournament or event organizer to generate revenue from advertisement of the various brand during the gaming event which will create opportunity in the E- sport market globally.

Esports Market
By Device Type
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Smartphone device type is projected as one of the most lucrative segments.

As per global Esports market trends North America is further anticipated to dominate the Esports market in the upcoming years, as the demand for online gaming and online betting is high in the region due to its technological advancement and major shift toward digital transformation. In the current market scenario, substantial growth has been experienced in the usage of E-sport service across Asia-Pacific. This is attributed to the fact that large population in this region has created an extensive pool of mobile subscribers for E-sport companies.

Esports Market
By Country
2030
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific is projected as one of the most significant region.

Moreover, the region is the largest contributor of internet subscriber which is important for online gaming in the globe. Also the  features of E-sport such as online live streaming of gamming which gives the equivalent feeling of real time gamming boosts the Esports market growth in the upcoming years. Asia-Pacific is further anticipated to witness heavy growth in deployments of Esport service in the upcoming years, due to major shift toward digital transformation and the initiative of partnership in Esport service taken by key players in the countries, including China, India, and Japan. For Instance, in May 2021, Chinese smartphone manufacturer company partnered with leading E-sport company that is TJ sports to provide digital advertisement for Chinese league of Wild Rift pro league; this partnership will continue till 2023.  

The report focuses on the market growth prospects, Esports market forecast, restraints, and market analysis. The study provides Porter’s five forces analysis of the Esports industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the esports market trends.

Segment Review

The Esports industry is segmented on the basis of application, streaming type, device type, revenue stream, and region. By application, it is bifurcated into platform and service. By streaming type, it is divided into live and on demand. By device type, it is categorized into smart phone, smart TV, desktop-laptop-tablets, gaming console. By revenue stream, it is classified into media rights, game publisher fee, sponsorship, digital advertisement, tickets and merchandise. By region, the Esports industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Top Impacting Factors    

Numerous factors such as increase in awareness of video games and rise in popularity of Esport drive the growth of the esports market. However, lack of standardization and threats such as betting and gambling limit the market growth. Furthermore, long term investment initiative taken by key players and increase in number of tournaments & events with huge prize create lucrative opportunities in the market during the forecast period.

Increase in Popularity About Online Video Games

The use of smartphones across developing economies is on a continuous increase due to numerous factors such as rise in per capita income, cost affordability, availability of multiple low price options with significant features, and others. This increases the demand for online smartphone gaming and video gaming. Video games have been around for decades, providing entertainment for children. The video game sector is immensely large. In fact, it is larger than movie & music industry and it is also growing rapidly. Online gaming is most popular in all the age group audiences which includes children as well as adults. There are over two billion gamers across the world. This is 26% of the world's population and it will goes increasing. As the demand for online video game event is increases it will create lucrative opportunity for the esports market globally. 

Increase in Popularity About Online Video Games

The U.S. e-motorsports is a booming industry where skilled video gamers play competitively. In the same way that traditional sports have competitions in baseball, basketball, and football, the U.S. e-motorsports encompasses competitions across a variety of video games. The video game industry continues to see an impressive jump in both revenue and attentiveness to the U.S. e-motorsports from major media companies as coronavirus-related restrictions roll out and keep millions of people at home while searching for new forms of entertainment.

However, countries begin to examine paths toward easing stay-at-home restrictions and reopening businesses, video game, and the U.S. e-motorsports industry. The giants of the video game industry, including Microsoft, Nintendo, Twitch and Activision have grown in the conditions created by the pandemic. For instance, in April 2020, Microsoft disclosed that the number of subscribers to its Game Pass service cracked 10 million.

Among those subscribers, Microsoft reported 130% increase in multiplayer engagement across March and April 2020. In addition, in 2020, Twitch, the most popular video game streaming platform, witnessed 1.49 million gaming hours watched in April 2020, which is 50% increase since March 2020. This increase in popularity of video games drives the U.S. e-motorsports market.

Growth in Awareness About the U.S. E-motorsports

There is an increase in awareness about the U.S. e-motorsports  across the globe after COVID-19. U.S. e-motorsports growth is expected to continue over the next several years, with a predicted to increase by over $1.4 million by 2024, with more than a third of revenue coming from North America as the region becomes more aware and more invested in U.S. e-motorsports events.

However, even after the pandemic has passed, the U.S. e-motorsports market  is expected to continue growing despite some potential lost viewers. The halt in traditional sports games and coverage has given U.S. e-motorsports access to a bigger audience around the world. Traditional sports fans are turning to U.S. e-motorsports for their entertainment and some TV networks are broadcasting the U.S. e-motorsports tournaments to fill timeslots left empty by other sporting events.

This is still an opportunity for the market to pick up many new fans who is expected to maintain their interest after the pandemic.  Premier League of Football, NASCAR, and other sports organizations have begun holding virtual events in sports video games, where professional athletes play against each other in the virtual world rather than the physical one. View numbers vary significantly depending on the event; however, it is similar to the ratio of number of audience in actual event. This factor is expected to drive the market globally.

Key Benefits for Stakeholders

  • The study provides an in-depth analysis of the Esports market along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restraints, and opportunities and their impact analysis on the Esports market size is provided.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the Esports market.
  • The quantitative analysis of the Esports market from 2020 to 2030 is provided to determine the Esports market potential.

Esports Market Report Highlights

Aspects Details
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By Application
  • Platform
  • Service
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By Streaming type
  • On demand
  • Live
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By Device Type
  • Smart phone
  • Smart TV
  • Desktop -laptop-tablets
  • Gaming console
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By Revenue Stream
  • Media rights
  • Game publisher fee
  • Sponsorship
  • Digital advertisement
  • Tickets and merchandise
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By Region
  • North America  (U.S, Canada)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Modern Times Group, FACEIT, Electronic Arts, CJ Corporation, Gameloft SE, NVIDIA Corporation, Kabam, Activision Blizzard, Inc., Nintendo, Gfinity

Analyst Review

According to the several interviews conducted with top level chief executive officers of E-sports service provider company, shows that the adoption of E-sports has increased over time to deliver reliable and consistent gamming and online service for their subscribers. As the new generation of people which grew up with playing games on gamming console, PC and smartphones increases the demand for e-sports. Most of key players are investing heavily in E-sports and drone racing, which combines technology, physical action, and interesting options for digital gamming. Drone racing is one of several emerging E-Sports that combine technology, competition, and new methods for content distribution and audience participation. Professional video gaming is the other emerging E-sport, whereby competitors can now earn a seven-figure salary playing popular video games in high-profile tournaments.

The CXOs further added that the market is expected to witness significant growth in the future, due to increase in use of E-sports among the end users due to emerging adoption of high speed internet. The global E-sports market is highly concentrated, and companies are focusing on leveraging new technologies for offering online gaming solutions to meet the emerging requirements of the user. Moreover, increase in investments in online gaming & online betting in developed as well as emerging countries boosts the adoption of E-sports in the market globally.

North America is further anticipated to dominate the E-sports market in the upcoming years, as the demand for online gaming and online betting is high in the region due to its technological advancement and major shift toward digital transformation. In the current market scenario, substantial growth has been experienced in the usage of E-Sport service across Asia-Pacific. This is attributed to the fact that large population in this region has created an extensive pool of mobile subscribers for E-sports companies. Moreover, the region is the largest contributor of internet subscriber which is important for online gaming in the globe, also features such as online live streaming of gamming which gives the feeling of real time gamming which boosts in the e_ sports in the upcoming years. Asia-Pacific is further anticipated to witness heavy growth in deployments of E-sports service in the upcoming years, due to major shift toward digital transformation and the initiative of partnership in E-sports service taken by key players in the countries, including China, India, and Japan. For instance, in May 2021, Global E-sports which is leading E-sports service providing company in India announced its partnership with Shure, a leading Audio brand based in the U.S. Shure India has become the official Audio partner at Global E-sports India with this partnership.

The presence of a large number of providers in the global E-sports market increases the competition between key players. Therefore, E-sports service providers are differentiating themselves from competitors and driving revenue growth by incorporating new digital business technologies such as artificial intelligence, machine learning, and virtual reality into their offerings to gain a competitive lead and retain their market position. The market is considerably concentrated with major players consuming significant market share. The degree of concentration will remain the same during the forecast period. The vendors operating in the market are taking several initiatives such as new product launches, and partnership to stay competitive in the market and to strengthen their foothold in the market.

 

Author Name(s) : Rachita Rake & Shreyas Wadodkar | Onkar Sumant

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Esports Market

Global Opportunity Analysis and Industry Forecast, 2020-2030