Esports Market Size Worth USD 5,199.8 Million in 2028 | Emergen Research
According to Emergen Research’s most recent analysis, the worldwide esports market had a value of USD 1,165.6 million in 2020 and is projected to grow at a rate of 20.7% during the forecast period. 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 in the near future will be fueled by an increase in the number of events with significant sponsorship deals.
The factors affecting the market growth are an increase in live streaming of games, significant investments, growing audience reach, engagement activities, and infrastructure for league competitions. The market benefits from the lucrative prospects made possible by the industry’s growing professionalisation 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. In order to foster the development of qualified professionals, schools and institutions have also begun offering specialised esports programmes.
A total of USD 2 billion was invested in the market in 2020, an increase of 116% from 2019. Due to the growing number of franchise-style leagues and growing audience, investments in the esports business are anticipated to expand during the anticipated timeframe. The market is projected to have stable expansion during the estimated time due to investors’ increased interest.
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. The esports market’s overall revenue growth has been attributed in large part to the vital role that microtransactions have played in this industry.
Some Key Highlights from the Report
· 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 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 organisations and teams to sponsor events. Offering gaming-related items has shown to be a great investment, enabling companies to boost sales and brand recognition.
· Over the projection period, the smartphone category is anticipated to lead in terms of revenue. Since the number of smartphone users has increased significantly over the years, esports development has increased concurrently. This growth has been fueled by strong Internet connectivity and speed, as well as by the accessibility and affordability of high-performance smartphones, which are some of the key factors anticipated to fuel this segment’s revenue growth.
· 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 on the basis of 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
- Media Rights
- Merchandise & Tickets
Device Outlook (Revenue, USD Million; 2018–2028)