Esports Market Size to grow by USD 3467.22 million between 2024-2028
According to a research report “ Esports Market” by Revenue Stream (Sponsorships, Media rights, Publisher fees, Advertising, Merchandise and ticket sales) Genre (MOBA, FPS, RTS, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 3467.22 million, at a CAGR of 20.5% during the forecast period. Esports sponsorships represent a strategic branding approach for businesses seeking to promote their products or entire brands. Various industries have recognized the potential of esports events as a platform for marketing, with gaming console manufacturers and video game developers being early adopters. Notable corporations such as HTC Corp, Twitch, Intel, Adidas AG, Vodafone Plc, The Coca-Cola Co., and Mercedes-Benz (a subsidiary of Daimler AG) have capitalized on this trend by sponsoring global esports events. One recent example includes OverActive Media, the parent company of MAD Lions, Toronto Ultra, and Toronto Defiant, entering into a multi-year partnership with Red Bull Gaming Studio in May 2021. Such sponsorships not only generate new revenue opportunities for esports events but also contribute significantly to the growth of the global esports market.
Browse market data tables, figures, and in-depth TOC on “Esports Market” by Revenue Stream (Sponsorships, Media rights, Publisher fees, Advertising, Merchandise and ticket sales) Genre (MOBA, FPS, RTS, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Revenue Stream, the Sponsorships segment is projected to dominate the market size in 2024
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By Genre, MOBA segment is expected to hold the largest market size for the year 2024
Esports presents a unique business opportunity for sponsors, owing to its rapidly expanding and highly engaged audience of tech-savvy, young consumers with substantial purchasing power. This demographic is coveted by marketers, and esports offers an authentic and integrated platform for reaching them. Sponsorship deals are struck not only with event organizers, but also with individual teams and players. Esports organizations serve as valuable partners for companies seeking to tap into this engaged audience. Team sponsorships encompass branding on team uniforms, social media promotion, collaboration on content, and activation at events. The increasing viewership of esports events underscores the profitability of this investment for companies.
APAC is forecasted to hold the largest market size by region in 2024
The esports market in the Asia Pacific (APAC) region is projected to experience robust growth, surpassing other regions, during the forecast period. This notable expansion can be primarily attributed to the increasing penetration of global brands and products, the escalating adoption of online gaming, the burgeoning knowledge and recognition of esports among millennials, and the advancement of the gaming industry in APAC. Key contributing nations include China, Japan, South Korea, and India. China, in particular, is the most significant market in APAC due to the expanding disposable income of its population, enabling them to purchase advanced gaming consoles, and the substantial spending by Chinese consumers on gaming equipment.
The Esports Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Esports market is a rapidly growing industry, with popular games like Overwatch, League of Legends, and Fortnite leading the charge. Advertising opportunities in Esports are vast, with streaming platforms like Twitch and YouTube providing a large audience reach for brands looking to engage with millennials. The revenue model for Esports includes ticket sales for league tournaments, viewership revenue from live streaming, and gaming investments from sponsors. The Esports Integrity Coalition ensures fair play and ethical practices in Esports, maintaining the integrity of the industry. Event organizers and influencers play a crucial role in the Esports ecosystem, providing infrastructure for league tournaments and engagement activities that keep the audience engaged. The infrastructure required for Esports events includes high-speed internet, advanced gaming equipment, and large-scale production capabilities. The engagement activities, such as meet-and-greets with players, merchandise sales, and interactive experiences, add value for fans and increase revenue. With the growing popularity of Esports, the future looks bright for this industry. As more games join the Esports scene, and more investors enter the market, the potential for revenue growth is immense. The Esports market is an exciting space to watch, and it's only going to get bigger.
Market Research Overview
The Esports market has experienced explosive growth in recent years, driven by the increasing popularity of video games and the rise of virtual reality products. With viewership numbers reaching new heights, video-on-demand and live streaming have become essential components of the industry. Games like Valorant, Overwatch, and League of Legends have attracted large fan bases and generated significant ticket sales through video game tournaments. Technology improvements have played a crucial role in the Esports industry's growth, with high-tech gadgets and streaming platforms enabling user interaction and real-time strategy games. The shift to online gaming and the influence of influencers have also contributed to the industry's revenue model, which includes ticket & merchandise sales, media rights, and recurring revenue models such as microtransactions. The Esports industry has become a professional career choice for many, with scholarships, private equity investments, and infrastructure development. However, health concerns such as poor posture, metabolic disorders, and musculoskeletal injuries have emerged as challenges, particularly for sedentary smartphone users. The industry's infrastructure includes event organizers, the Esports Integrity Coalition, and gaming platforms. Esports has reached a global audience, with Spain being a significant market, and influencers and celebrities driving fan engagement. Despite the distraction concerns, dedicated programs and consumer spending on gaming investments continue to fuel the industry's growth. PayPal insights indicate that revenue from Esports is expected to reach billions in the coming years, with the gaming industry leaders embracing the genre as a legitimate and lucrative business. The Esports genre includes various gaming genres, from real-time strategy games to fighting games, and caters to a diverse range of gamers. Game publisher fees and developer royalties are also significant revenue streams. In conclusion, the Esports market is a dynamic and rapidly evolving industry, driven by the popularity of video games, technology improvements, and fan engagement. While there are challenges related to health concerns and addiction, the industry's potential for revenue generation and professional opportunities make it an exciting and innovative space to watch.
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