by Electronic sports, commonly known as eSports, refers to organized multiplayer video game competitions that are played professionally at an international level. eSports has gained significant popularity over the past decade among millennials and Gen Z populations globally, who enjoy watching gaming streams and competitions. The global eSports industry attracts large sponsorship deals and advertising revenues from brands targeting younger demographics. Popular eSports titles include multiplayer online battle arena (MOBA) games like League of Legends and Defense of the Ancients 2 (Dota 2), first-person shooter (FPS) games like Counter-Strike: Global Offensive, fighting games like Tekken, and real-time strategy (RTS) games like StarCraft. Professional eSports athletes and teams compete for prize money across various leagues and tournaments throughout the year. The growing popularity of watching live gaming events online and connecting with eSports influencers has made it a burgeoning entertainment and career sector for many.
The global eSports Market is estimated to be valued at US$ 2123.48 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the eSports market growth is the rising number of eSports events globally. Major leagues and tournaments are attracting larger prize pools, sponsorships, and viewership every year. According to data, annual global eSports prize pools grew from $25 million in 2015 to over $300 million in 2023. Leagues like the League of Legends Championship Series (LCS) in North America now attract regular season viewership comparable to televised NBA or NHL games. Rising interest has also encouraged sponsorship from consumer brands in gaming hardware, attire, drinks, and other categories. Many youth today see professional gaming as a viable career option, fueling further infrastructure and investment in the eSports industry worldwide.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as this industry requires high capital investment and expertise which makes it difficult for new players to enter. However, the growing interest of people in eSports provides opportunities.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have various platform options to choose from but are often loyal to certain games or platforms which limits their power.
Bargaining power of suppliers: The power of suppliers is low as there are many game developing studios and platform providers. Switching costs are also low for suppliers.
Threat of new substitutes: The threat of new substitutes is low as there aren’t close substitutes for the unique experience eSports provides. However, viewers have many entertainment options.
Competitive rivalry: The competitive rivalry is high as key players compete fiercely for viewers, players and sponsors on both regional and global levels.
Key Takeaways
The Global Esports Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The global eSports Market is estimated to be valued at US$ 2123.48 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024-2031.
Regional analysis:
The Asia Pacific region dominates the global eSports market led by countries like China, South Korea and Japan. Large audience and government support have contributed to its growth. North America and Europe are other major regions.
Key players operating in the eSports market are Saipem, Subsea 7 S.A., McDermott International, and TechnipFMC plc. Saipem and Subsea 7 S.A. enjoy considerable market shares due to their expertise and global presence. McDermott International and TechnipFMC plc are growing aggressively through mergers and expansion into new regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
