According to the latest report by Vantage Market Research, the Global Esports Market is projected to reach around $12 Billion by 2030, with an impressive growth rate of 27.6%.
There are many factors that contributed to this meteoric rise including the surge in live game streaming, significant investments, an expanding audience base, engaging activities, and enhanced infrastructure for league tournaments.
Factors Driving Esports Growth
1. Technological Advancements
The Esports industry’s growth is heavily influenced by technological advancements, with improved graphics, faster internet speeds, and advanced streaming platforms fostering increased participation and viewership.
In North America and Europe, we can probably see high technical advancement but in recent years Asia-Pacific region came forefront of technology and showed vast growth in new technology.
2. Widening Audience Base
Advancements in technologies not only enhance the gaming experience but also help to widen the user base across the esports sector.
Affordable mobiles, gaming consoles, and accessories along with internet data plans help the esports sector to grow faster.
A broader audience base translates to more sponsors and higher revenues for Esports tournaments, marking a symbiotic relationship between engagement and financial success.
3. Acceptance of Competitive Gaming
The growing acceptance of competitive gaming as a legitimate sport has attracted investments from traditional sports organizations and sponsors, bolstering the industry’s credibility.
Previously gaming was considered a mere pastime, but in recent times gamers all around the world consider it as a competitive sport and career.
4. Corporate Investments
As Esports gains traction, companies recognize its demographic appeal and invest in teams, tournaments, and sponsorships to tap into the millennial and post-millennial audience.
Even some governments i.e. India, Germany, China, Indonesia, Philippines, Saudi Arabia, and Thailand have started supporting and investing in the esports sectors and startups in order to boost gaming sectors and the market.
5. Community and Fan Engagement
The strong community and fan engagement surrounding Esports contribute significantly to its growth, fostering a sense of belonging and excitement that translates into increased viewership and support.
Numbers speak for themselves sometimes, as the year goes by the viewership of many esports tournaments shows a significant rise showcasing the growing appeal of competitive esports.
Key Highlights: Navigating the Esports Landscape
1. Application Segment
Platform Category: Anticipated to witness maximum market growth over the projected period.
2. Device Type Segment
Smartphone Category: Expected to maintain its dominant position during the forecast period.
3. Regional Dominance
In 2022, the market was ruled by North America with a revenue share of 32.6%.
The Asia Pacific region is one emerging region poised for notable market growth in the coming years.
Unveiling Esports Trends
1. Increasing Viewership
One of the top trends in the Esports market is the remarkable surge in viewership, with millions of fans tuning in to professional gaming tournaments and leagues.
For instance, the recent M5 Mobile Legends Global Championship, DOTA2 Championship, and Inaugural CS2 Championship created records viewership from their previous iteration.
2. Sponsorship and Advertising Opportunities
Esports presents unique opportunities for sponsorship and advertising, allowing brands to reach a highly engaged and targeted audience, leading to substantial investments in partnerships with Esports teams, events, and leagues.
For instance, big Indian cricketing stars came forward and openly supported the freshly launched BGMI.
This helped BGMI quickly regain momentum and came into the esports scene after a 2 year of ban. Big sponsor shows their interest in sponsoring the team.
Lionel Messi is a prime example who recently became the co-owner of an Argentinian Valorant and Rocket League esports team company – Kru Esports.
Prominent Players in the Arena
In the expansive world of Esports, key players such as Gameloft SE, Kabam, Nintendo, Gfinity, CJ Corporation, FACEIT, Activision Blizzard Inc., Modern Times Group, NVIDIA Corporation, and Electronic Arts dominate the landscape.
Strategic Insights: Navigating the Esports Ecosystem
1. Brand Visibility
Companies strategically align with Esports teams, leagues, or events to increase brand visibility and reach their target audience through logo placement, product collaborations, or placements within the Esports ecosystem.
As tournaments and eSports has their own brand ambassador it’s easier for the company to approach this league or tournament to get easy access to the audience.
2. Product Development
Companies develop products specifically designed for gamers and Esports enthusiasts, ranging from gaming accessories and equipment to game-related content such as live streaming platforms or gaming communities.
For instance, many companies especially have launched mice, and keyboards for Valorant, and CS2.
3. Esports Tournaments
Organizations host their Esports tournaments, showcasing their brand, building loyalty, and generating revenue through ticket sales, merchandise, and sponsorship opportunities.
For instance, a big bookseller company Pinnacle has recently announced to organize a DOTA2 tournament big prize pool on their anniversary.
As most of the gaming audience is around the 10 to 25 age group it is the best strategy for booksellers company to not only attract an eSports audience but also promote their products.
This way the company not only got help to promote its products but also introduced many eSports celebrities’ interview and their success story through magazines showing promising positions among gaming fans.
4. Venture into Education
Recognizing the growing interest in Esports, companies venture into the education sector, offering Esports programs and training courses, including coaching sessions, workshops, or online tutorials to nurture aspiring gamers and attract future talent.
Recent Developments: A Glimpse into the Future
1. Electronic Arts’ Foray into Esports Football
In September 2023, Electronic Arts launched “FC 24,” its inaugural Esports football game, sans the familiar FIFA branding, aiming to continue its successful franchise.
2. Syracuse University’s Esports Degree Program
March 2023 witnessed Syracuse University in the United States announcing a new degree program dedicated to electronic sports, aiming to provide fresh expertise for upcoming trends and instruments.
3. NVIDIA and Microsoft’s Decade-Long Collaboration
February 2023 marked the commencement of a decade-long collaboration between NVIDIA and Microsoft, enabling Xbox PC games to be accessible on the NVIDIA GeForce NOW cloud gaming platform.
4. Nike’s Debut on Esports Platform
In October 2022, the renowned sportswear brand Nike debuted its first ad on an Esports platform, marking a significant step in mainstream brand engagement.
Market Segmentation: Navigating the Esports Maze
Application
- Platform
- Service
Streaming Type
- On-Demand
- Live
Device Type
- Smartphone
- Smart TV
- Desktop/Laptop/Tablets
- Gaming Console
Revenue Stream
- Media Rights
- Game Publisher Fee
- Sponsorship
- Digital Advertisement
- Tickets & Merchandise
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Segment Highlights: Insights into Esports Dynamics
1. Application Analysis
The platform segment accounted for the most significant market revenue in 2022, driven by the rapid improvement of gaming platforms in terms of strength and capability.
2. Streaming Type Analysis
During the projected timeframe, the live segment is anticipated to have a major market share, fueled by the increasing emphasis on engaging fans and the growing number of smartphone users.
3. Device Type Analysis
The smartphone category earned the highest revenue in 2022, driven by the increasing usage of smartphones in developing nations.
4. Revenue Stream Analysis
The sponsorship segment is projected to experience maximum growth during the forecast period, as Esports platforms attract sponsorship teams aiming to enhance their brand image.
Regional Powerhouses: Esports Market by Region
1. North America
Revenue Leader: Accounted for the highest portion of revenue in 2022.
US Dominance: The United States played a prominent role, fueled by a significant number of online gamers and the early embrace of cutting-edge technologies.
2. Asia Pacific
Growth Hotspot: Poised for notable market growth during the forecast period.
Conclusion: Navigating the Esports Frontier
In a nutshell, the Global Esports Market is not merely a spectator sport but a thriving ecosystem driven by technological innovation, community engagement, and strategic partnerships.
As we ride the wave of Esports growth, the industry’s future looks promising, with new dimensions and opportunities unfolding across diverse segments and regions.
Whether you’re a gamer, investor, or enthusiast, the Esports realm welcomes all to explore and contribute to its dynamic evolution.
Disclaimer – The article is based on Vantage Market Research Report with the author giving some extra inputs and thoughts.
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