According to the most recent analysis by Emergent Research, the global esports market reached USD 1,165.6 million in 2020 and is predicted to grow at a rate of 20.7 % throughout the projection year. The advent of online sports cafes and higher venture capital investments are two major drivers propelling the growth of the global esports market in terms of revenue. Additionally, the market’s predicted revenue growth shortly will be fueled by an increase in the number of events with significant sponsorship deals.
The esports market benefits from the lucrative prospects made possible by the industry’s growing professionalization for influencers, gamers, event planners, and game developers. Due to the growing popularity of gaming competitions, one-to-one sponsorships, streaming earnings, and big international prize pools, millennials view esports as a viable alternative for a professional career. To foster the development of qualified professionals, schools and institutions have also begun offering specialized esports programs.
It has been determined that the free-to-play gaming business model is successful, with significant in-game microtransactions fueling the firms’ revenue and thus sustaining the industry’s expansion. Free-to-play games have gained popularity since there are no introductory fees; instead, players only pay for supplemental or supplementary content. Some games with microtransactions include Fortnite, League of Legends, and Counter-Strike: Global Offensive. The free-to-play business model has encouraged diversity and assisted in bringing together new gamers in the esports ecosystem, which has led to an increase in the number of gamers overall.
- Revenue from the First Person Shooter (FPS) market is anticipated to increase at a very quick CAGR throughout the forecast period. The most popular and desired gaming genre right now is the first-person shooter. One avatar can be controlled at a time in this type of game. Counter-Strike and Call of Duty are two of the most played games, among many others.
- Over the projection period, the sponsorship segment is anticipated to take the lead in terms of revenue share contribution. Through sponsorship, businesses have a fantastic opportunity to communicate with their target market directly through both online and offline media platforms. Numerous significant businesses, including Nvidia and Intel, have partnered with esports organizations and teams to sponsor events. Offering gaming-related items have shown to be a great investment, enabling companies to boost sales and brand recognition.
- Over the projected period, Asia Pacific is anticipated to represent a substantially greater revenue share than other regional markets. Market expansion is anticipated to be fueled by the rising number of esports supporters and sponsors in both developed and emerging nations.
- Activision Blizzard, Inc., Modern Times Group, Nintendo Co., Ltd., FACEIT, Gfinity plc, Tencent Holdings Ltd, Turner Broadcasting System, Inc., Electronic Arts Inc., Valve Corporation, and Gameloft SE are a few of the industry’s top competitors.
Emergen Research has segmented the global esports market based on game type, revenue streams, device, and region:
Game Type Outlook (Revenue, USD Million; 2018–2028)
- First Person Shooter (FPS)
- Multiplayer Online Battle Arena (MOBA)
- Real-time Strategy (RTS)
- Player Versus Player (PvP)
Revenue Streams Outlook (Revenue, USD Million; 2018–2028)
- Publisher Fees
- Sponsorship
- Media Rights
- Merchandise & Tickets
- Advertising
Device Outlook (Revenue, USD Million; 2018–2028)
- Smartphone
- Computer
- Tablet
- Others
Regional Outlook (Revenue, USD Million; 2018–2028)
- North America
- the U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- the U.K.
- Italy
- Spain
- BENELUX
- Rest of Europe
- the Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Turkey
- Rest of MEA