The global esports market size is estimated to grow at a CAGR greater than 25.1% during the forecast period and reach a market value of approximately $ 7131.8 million by 2028.
Esports is a booming global industry in which skilled video players compete. Globally, time spent on mobile devices has officially overtaken time spent on TV, with users spending eight more minutes per day on their mobile devices. By 2021, that figure had risen to over 30 minutes. Over 380 million people watch esports worldwide online and in person.
Impact of Covid-19 on the Esports market
Despite the widespread economic disruption caused by the coronavirus, the global video game industry is flourishing. The coronavirus is not immune from gambling. Esports, with its addiction to live events, was one of the first industries to be affected. The majority of esports events have been canceled or postponed, although some still go without spectators. However, today the industry is showing outstanding performance thanks to the increasing number of global tournaments, the growth in the number of regional events, etc.
Dynamics of the global esports market
The growing youth population and changing lifestyles have both contributed to an increase in demand for video games and online video games over the years. Increasing audience reach and engagement activities, significant investments, increasing game live streaming and expanding infrastructure for league tournaments are key factors in the growth of the Marlet. Global online platforms such as Facebook, YouTube, and Twitch, which enable streamers to gain popularity and generate impressive revenues, have contributed to the increased growth in esports market share. The increased penetration of smartphones and improved internet connectivity has resulted in a rapid increase in the number of gamers.
However, certain restraints and challenges are likely to hamper the overall growth of the Esports market. Fraudulent bets that lead to game piracy pose a threat to the market. Additionally, market growth has been hampered by a lack of tournament infrastructure and a small number of organizations. The video game industry is rapidly evolving from a casual hobby to a professional career opportunity, which is also a global trend in the esports market. Additionally, large-scale esports investments are expected to fuel the growth of the esports industry. In addition, the increasing adoption of advanced gaming technologies has increased the penetration of smartphones and the improvement of internet connectivity has increased the number of players, positively influencing the growth of the market.
Accumulated sponsorship for the impressive shares of the global esports market scenario
In 2020, the sponsorship segment acquired the largest shares. Well-known esports games / tech sponsors are increasing their involvement as the industry intensifies. Sponsorships are important in the esports industry as a growing number of companies are investing in them. Additionally, with increasing player salaries and an expanding esports market, the introduction of new sponsors is critical to the long term business success of esports. To increase the value of their brand, the gaming and other sectors are also investing in the esports industry.
On the other hand, the media rights segment is expected to experience the fastest CAGR throughout the forecast period 2021-2028. Media companies pay exorbitant fees to gain the exclusive right to broadcast live broadcasts of major sporting events. Esport is made up of thousands of leagues and individual events as well as the media rights agreement. The media rights segment is therefore expected to record the fastest growing esports industry.
Regional position Esports
The global esports market classification includes North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Among all the regions, North America has conquered the global market with the largest shares in 2020. The increasing number of investments and technological expansions are the key aspects that continue with the North America League of Legends Championship franchise. Series (NA LCS) and Overwatch League are fueling the North American esports market. However, the esports industry in Asia-Pacific is expected to dominate the market in the coming years. Due to the COVID-19 outbreak, Asian gaming giants such as Nintendo and Tencent saw their sales increase in the first quarter of 2020. This trend is expected to continue as more and more game companies collaborate with sports organizations. to offer virtual tournaments for sports. Fans. In addition, Asia-Pacific is also expected to register significant growth.
The esport market is consolidated with a large number of players. Major players featured in the report include Activision Blizzard, Inc., Valve Corporation, Tencent Holding Limited, Modern Times Group, Faceit, Electronic Arts Inc., Gameloft SE, Nintendo of America Inc., NVIDIA Corporation, Wargaming Public, and others.
For example, September 29, 2021 – Electronic Arts Inc. and FIFA announced the launch of a new EA SPORTS FIFA 22 esports program that is expected to attract millions of players and viewers. In 1v1 and 2v2 competitions, players will feature themselves, globally recognized esports organizations, real world football clubs and their country in a series of FIFA esports events.
Additionally, in November 2017, Electronic Arts and FIFA collaborated to launch a series of esports tournaments for the Electronics Arts FIFA video game franchise.