Esports, a prominent segment of the global gaming industry, is on a trajectory of consistent expansion. This growth is primarily fueled by the rise of cloud gaming and mobile gaming. With the widespread adoption of smartphones equipped with enhanced processing power and the increasing popularity of 5G networks, esports is expected to achieve a remarkable CAGR of approximately 20% between 2019 and 2025.
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The Evolving Gaming Landscape
The gaming industry is poised for transformation during the same period, becoming more interactive and centered around streaming. Major revenue contributors in the gaming industry include countries such as China, Japan, the United States, Germany, South Korea, France, Canada, and the United Kingdom. With the growing global popularity of esports and the strong support of game publishers, the global esports market is projected to surpass $3 billion by the end of 2025.
What Is Esports?
Esports refers to competitive video gaming events organized either online or offline. It has garnered significant attention with many gaming events being broadcasted on popular social media and streaming platforms such as YouTube and Twitch. The esports market is on track to cross the $3 billion mark by 2025, with major competitions occurring in games like Dota 2, Fortnite, and League of Legends. Common genres featured in esports events include Real-Time Strategy (RTS), Massive Online Battle Arena (MOBA), and First-Person Shooter (FPS).
The Ascendance of Esports
The popularity of esports has experienced rapid growth since 2010, driven by diverse revenue streams beyond traditional sources like event broadcasting rights and ticket sales. New revenue streams include merchandise sales and corporate sponsorships. As of 2019, the game streaming platform Twitch is a significant medium for broadcasting esports. Major esports events like E LEAGUE Major, Genesis, Evo Japan, and WESG attract substantial viewership on video game streaming platforms. These events also offer increasing prize money for winners, thanks to the growing revenue streams.
Global Reach of Esports
Geographically, the esports market spans North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW), encompassing the Middle East, South America, and Africa. North America takes the lead as the highest revenue generator in the global esports market, with a substantial contribution from the United States. The North American market thrives due to the growing esports audience. Meanwhile, APAC is emerging as one of the fastest-growing esports markets, with significant growth in China, Australia, South Korea, Taiwan, and Japan.
Revenue Models in Esports
The global esports market revenue models are categorized into advertisement, sponsorship, media rights, and others. The “others” category includes revenue generated from game publisher fees and sales of tickets and merchandise. In 2018, advertisement and sponsorship accounted for the largest share of revenue generated in the esports market.
Understanding the Audience
The global esports market is segmented based on the audience into two categories: regular viewers and occasional viewers. Regular viewers consist of fans and dedicated game enthusiasts who regularly follow esports events. In 2019, regular viewers represented a significant share of the market.
A Gender Perspective
The global esports market is also segmented by gender, distinguishing between male viewers and female viewers. In 2019, male viewers, particularly those in the 20-35 age group, held a major portion of the market share.
Key Players in Esports
The esports market is predominantly influenced by major companies that organize esports events and game publishers. Key vendors in the market include Cloud9, Team SoloMid, Team Liquid, Epic Games, Valve Corporation, Activision Blizzard, and Echo Fox. Other notable vendors comprise Fnatic, Gen.G Esports (formerly KSV Esports), 100 Thieves, G2 Esports, Immortals, Envy Gaming, Counter Logic Gaming, Nintendo, Tencent, Hi-Rez Studios, and EA Sports. The market is expected to witness an influx of both audience and tournaments in the forecast period, likely leading to an increased number of vendors, including game publishers and gaming organizations, entering the market.
The Road Ahead
According to Report Ocean Research, the global esports market is forecasted to grow at an impressive CAGR of nearly 20% during the period from 2019 to 2025. This report aims to define, analyze, and forecast the esports market based on segments, encompassing revenue models, gender, audience, and region. It is designed to provide company executives with a robust understanding of their competitors, data analysis, and insights for effective marketing plans.
Key Highlights
- Analysis of vendor profiles, encompassing financial status, business units, key priorities, SWOT analysis, business strategies, and viewpoints.
- Coverage of the competitive landscape, including mergers and acquisitions, joint ventures, collaborations, and competitor comparison analysis.
- For privately held companies, financial information and revenue from segments may be limited.
Region/Country Coverage
- North America
- Europe
- Asia Pacific (APAC)
- Rest of the World (RoW)
Key Players Covered in the Report
- Cloud9
- Team SoloMid
- Team Liquid
- Epic Games
- Valve Corporation
- Activision Blizzard
- Echo Fox
- Fnatic
- Gen.G Esports (formerly KSV Esports)
- 100 Thieves
- G2 Esports
- Immortals
- Envy Gaming
- Counter Logic Gaming
- Nintendo
- Tencent
- Hi-Rez Studios
- EA Sports
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