Esport Market | Contrive Datum Insights

The Global eSports Market Size Was Valued At USD 1.22 Billion In 2021. The Market Is Projected To Grow From USD 1.44 Billion In 2022 To USD 5.48 Billion By 2029, Exhibiting A CAGR Of 21.0% During The Forecast Period.

eSports Market Overview:

Based on what we found, the global eSports market grew by an average of 15.4% between 2019 and 2020.

The market is growing because of things like more live streaming of games, big investments, more viewers, more engagement, and better infrastructure for league tournaments. The market is getting more money-making opportunities because gamers, organisers, influencers, and game developers are becoming more specialised in their fields. Electronic sports are a choice for a professional career because they have a large international prize pool and make money from streaming.

Also, colleges and universities have started to offer programmes specifically for making skilled professionals.

Market Dynamics:

Latest Trends:

Advertisements aimed at people who watch electronic sports, such as those shown during live streams on online platforms or electronic sports TV, bring in money for this market.

With more people watching online platforms like YouTube and Twitch, advertising is likely to bring in a lot of money in the coming years.

According to Streamlabs, YouTube and Twitch made the most money for the industry in 2018. YouTube had 1.13 million active streamers and Twitch had 4.32 million quarterly active streamers.

So, as the number of streamers grows, there is likely to be more advertising-related content, which will help the market make money.

Also, in September 2019, the number of people watching the Overwatch League Grand Finals went up by 16%, giving a global AMA of 1.12 million. In April 2018, Activision Blizzard worked with Nielsen to track how many people watched Call of Duty League and Overwatch League. It's a good way to figure out how many people are going to these events and helps Activision Blizzard make good decisions about investments and marketing partnerships.

During the forecast period, the market share is expected to grow because there will be more ads.

Driving Factors:

People all over the world have become dependent on smartphones, other high-tech gadgets, and the internet because technology is always getting better. Video game companies have moved to a recurring revenue model in recent years because so many people want to play games. Also, as technology keeps getting better, the number of video game tournaments, virtual reality products, and consumer spending on video content is growing very quickly around the world.

The online gaming market is growing because of things like more people using advanced gaming technologies, people having different tastes in entertainment, and more people wanting to play games on their phones. The number of players has grown quickly because more people have smartphones and the internet is better.

One of the main things helping the market grow is that online video games are becoming more and more popular all over the world. Rise of electronic sports as a professional career due to exciting international prize pools, streaming revenue, and individual sponsorships, as well as the growing popularity of gaming tournaments, is speeding up the growth of the market.

Also, companies are working to improve the products they offer to athletes and make streaming better for viewers.

Restraining Factors:

Light-emitting diode (LED) computer monitors can cause metabolic disorders, and gambling addiction and social behavior disorders can cause psychological problems in gamers.

A recent study on the health effects of electronic sports players by Zwiebel et al. found that they are more likely to get injuries to their back, neck, and upper limbs. A metabolic disorder can also be caused by spending too much time in front of a computer monitor. Most of these problems happen because these players don't move around much and have bad posture.

Also, the fact that there are now college scholarships for video games is a worry, because kids can now say that they play too many games because they want to be the next big video game star, even though the chances of that happening are very low.

So, the above factors are likely to slow the growth of the market.

Segmentation Analysis:

By Streaming Type:

Live streaming and on-demand streaming are the two main types of streaming on the market. During the forecast period, live streaming is expected to have the largest share of the segment. Live electronic sports events are likely to become more popular as more attention is paid to getting fans involved. Also, more people are likely to watch live electronic sports tournaments as the number of smartphone users grows.

Video-on-demand is likely to grow quickly over the next few years because people want more entertainment at home. More people watch games on Over-the-Top (OTT) platforms than live because they can watch the game whenever they want. The video-on-demand part of this industry is likely to grow because of it.

By Revenue Streaming:

Depending on how the money comes in, the market is divided into media rights, advertising, sponsorship, ticket and merchandise sales, game publisher fees, and other categories. During the time frame of the forecast, the media rights segment is expected to gain the most market share. Since the industry is growing and more than 380 million people around the world watch these games, many media companies are putting money into them.

During the time frame of the forecast, sponsorship and advertising are expected to grow quickly. As the number of viewers grows, the team that is paying for the platform is putting money into it to build its brand. In the same way, many gaming platforms have ads inside their apps to make more money.

By Gaming Genre:

Based on the type of game, the market is divided into real-time strategy games, first-person shooter games, fighting games, multiplayer online battle arena games, mass multiplayer online role-playing games, and other types. During the time frame of the forecast, the first-person shooter games segment is expected to gain a large share. A huge number of first-person shooter games are available from many different game providers. The games from before had a 3D environment that looked real.

Fighting games will show a lot of improvement. It is becoming more popular on the market because it is used in virtual and video games.

Multiplayer online battle arena games will grow quickly over the next few years because they are competitive and profitable. Multiplayer is likely to grow because it is becoming more and more popular.

Regional Insights:

In 2021, North America had the largest share of the market. A large number of online gamers live in this area, which is expected to help the industry grow. Activision Blizzard, Inc., Riot Games, Inc., X1 Esports and Entertainment Ltd., and others are the biggest companies in the region. They spend a lot of money on research and development to stay ahead of the competition and meet customer needs.

In August 2022, X1Esports bought Tyrus LLC in order to reach more people in the Gen Z age group and add more ways to make money.

In July 2022, Twitch announced that its platform would get new safety features. This includes giving streamers control over who can "attack" them and letting them share lists of banned accounts with other viewers. Both features are a response to the attacks on marginalised streamers that have happened over the past year.

Over the next few years, Asia-Pacific is likely to grow in a big way. Countries like China, Japan, and India are likely to have strong demand because of how quickly sports events are moving to digital platforms for entertainment. The demand for electronic sports has gone up because there are so many opportunities in the gaming and entertainment industry in Asia and the Pacific.

There is a strong sports market in most European countries, which is likely to give electronic sports platform providers more chances to make money. Fans are often very interested in new ways to play games. In the same way, a lot of different parties are investing a lot in this market in Europe because it has a growing audience and a higher return on investment.

South America has a large number of people who are interested in sports, which is expected to help businesses grow. Several brands and sports companies are investing in South American countries because there are so many growth opportunities there. Argentine sports organisations have worked with companies like Cooler Master and Logitech.

The government of Middle East and Africa is putting money into sports to make sure that people have more ways to have fun. For example, the government of Saudi Arabia promised to put USD 3.3 billion into the gaming industry. So, the growing gaming industry is likely to make the Middle East and Africa market a better place for electronic sports to grow. In the same way, the pandemic has made more people want to stay home and have fun, which these platforms were able to provide. As more investors came into the market, the growth potential of these platforms in MEA grew a lot.

Scope Analysis

Recent Development:

• In August 2021: Gameloft partnered with ESL Gaming to enhance the mobile electronic sports-native sponsoring solutions.
• In July 2021: Intel collaborated with the International Olympic Committee to increase the focus on hosting one of the major virtual competitions as a kickoff to the Games. The electronic sports event was mainly scheduled to be held in Katowice, a city of approximately 3,00,000 individuals in Poland, a month before the Olympic Games.
• In June 2021: Gameloft partnered with Epik Prime, an NFT platform functioning with AAA gaming organizations & large entertainment IP and brands, which focused on launching a racing-themed set of archives within the mobile racing game Asphalt 9.
• In December 2020: Microsoft, Inc. acquired Smash.gg to innovate games, expand its offering, and accelerate content offerings. The company will develop competitive products and expand its multiplayer gaming market.
• In January 2020: Activision Blizzard announced the league for Call of Duty. This launch aimed to make Activision the largest operator of professional electronic sports leagues, where players compete in front of audiences.

Market Segmentation

By Streaming Type:

• Live
• On-demand
• Others

By Revenue Streaming:

• Media Rights
• Advertisement
• Sponsorship
• Ticket & Merchandise
• Game Publisher Fees
• Others

By Gaming Genre:

• Real-time Strategy Games
• First Person Shooter Games
• Fighting Games
• Multiplayer Online Battle Arena Games
• Mass Multiplayer Online Role-playing Games
• Others

By Companies:

• Twitch Interactive, Inc. (U.S.)
• Activision Blizzard, Inc. (U.S.)
• Tencent Holdings Limited (China)
• Riot Games, Inc. (U.S.)
• Gfinity plc (U.K.)
• X1 Esports and Entertainment Ltd. (U.S.)
• Loco (Stoughton Street Tech Labs Private Limited) (India)
• Caffeine (U.S.)
• DLive Entertainment Pte. Ltd. (U.S.)
• Sony Group Corporation (Japan)
• Others