July 19, 2024
Esports Market

Growing Popularity Of Online Gaming Is Expected To Boost The Growth Of The Global Esports Market

Market Overview:
The esports market refers to organized video game competitions, particularly between professional players. Esports often take the form of organized, cross-network competitions. Esports games are usually multiplayer online battle arena (MOBA) games, first person shooter (FPS) games, fighting games, real-time strategy games (RTS), soccer simulation games, and other genres. Some of the most popular games include League of Legends, Dota 2, Counter-Strike: Global Offensive, Overwatch, Street Fighter V and FIFA tournaments. Esports provides opportunities to gain attention, fame, and financial rewards through championship caliber competition. The growth of the market is driven by rising number of esports enthusiasts and tournaments as well as growing popularity of video games and online streaming platforms.

Market Key Trends:
One of the key trends in the esports market is the rising events and tournaments. The number of official esports events is growing steadily each year. Global viewership of esports is also rapidly increasing, reaching 453 million in 2019. Rising popularity is attracting major sponsors from various industries such as consumer electronics, food & beverages, cryptocurrencies, etc. With increasing competition, prize money awarded for winning major tournaments is also rising substantially. For instance, the prize pool for DOTA 2 tournament ‘The International’ reached $34 million in 2019, making it the esports event with the highest prize pool ever. Popular global tournaments like League of Legends World Championship and DOTA 2 International are broadcast on platforms like Twitch and YouTube, gathering millions of views. Growing viewership is incentivizing sponsors and advertisers to invest more in esports events. This is expected to drive further growth of competitive esports globally.

The global Esports Market Demand is estimated to be valued at US$ 1,843.29 Mn in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Porter’s Analysis
Threat of new entrants: The global eSports market is dominated by few major players which makes it difficult for new entrants to establish themselves due to high initial capital investment required to build infrastructure and gain popularity among viewers and gamers.

Bargaining power of buyers: The bargaining power of buyers is low in the global eSports market due to availability of variety of game titles and tournaments offered by different publishers and organizers. Buyers have limited influence over pricing as they can choose from multiple options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as few game developers and publishers hold major market share. However, presence of many independent game developers and availability of self-publishing options balance out supplier power.

Threat of new substitutes: Threat of substitutes is low as eSports require specialized infrastructure, skills and community like traditional sports which makes it difficult for other entertainment formats to substitute.

Competitive rivalry: The global eSports market witnesses intense competition among major players to expand game titles and broadcasting rights.

Key Takeaways
The global eSports market size is expected to witness high growth, exhibiting CAGR of 20% over the forecast period, due to increasing popularity of eSports tournaments and events among viewers globally.

Regional analysis North America dominates the global eSports market currently due to strong streaming infrastructure and high disposable income of consumers in the US and Canada spending on in-game items and viewership. Asia Pacific is expected to witness the fastest growth over the forecast period led by countries like China, and South Korea due to government support and thriving gaming culture.

Key players operating in the eSports market are Activision Blizzard, Inc., NVIDIA Corporation, Valve Corporation, Nintendo of America Inc., Riot Games, Inc., Epic Games, Inc., Tencent Holding Limited, Gameloft SE, Turner Broadcasting System, CJ Corporation and Electronic Arts Inc. and Others. Key players are focusing on organizing international eSports tournaments and developing advanced gaming hardware and software to enhance user experience and viewership. Players are also investing in eSports infrastructure development in emerging markets.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it