Esports

Revenue in the Esports market in Asia is projected to reach US$1.2bn in 2024.
Revenue in Asia is expected to show an annual growth rate (CAGR 2024-2029) of 5.89%, resulting in a projected market volume of US$1.6bn by 2029.
The largest market in Asia is Esports market_Betting with a market volume of US$452.1m in 2024.
With a projected market volume of US$1.1bn in 2024, most revenue is generated the United States.
In the Esports market in Asia, the number of users is expected to amount to 505.4m users by 2029.
User penetration in Asia will be 10.7% in 2024 and is expected to hit 12.5% by 2029.
The average revenue per user (ARPU) in Asia is expected to amount to US$2.84.
In Asia, particularly in South Korea, the esports market is witnessing a surge in popularity, driven by increased investment and a young, enthusiastic audience.

Definition:

Esports, short for electronic sports, refers to competitive video gaming where professional players or teams compete in various multiplayer video games. These competitions are often organized into leagues, tournaments, and events, attracting both online and offline audiences. Esports has grown into a global industry, with players, sponsors, and spectators contributing to its popularity and economic significance.

Structure:

The Esports market can be divided into 6 different parts. First, Sponsorship & Advertising, which refers to revenues made from sponsorship deals and advertising for events and tournaments. Merchandise & Ticketing refers to the revenues generated mainly from tournament tickets and the merchandise that comes with it. Additionally, Streaming, Media Rights and Publisher Fees, which all refers to the revenue that is associated with broadcasting Esports events accross various channels. Lastly, Esports Betting includes the betting on outcomes of Esport events.

Additional information:

The market comprises revenues, ad spendings, users, average revenue per user, and penetration rates. Revenues are generated through advertising spending and consumer spending. Sales channel data shows both online and offline revenues. Information on Esports betting can also be found in the Digital Market Insights. All monetary figures refer to the annual gross revenue.
Key players of the market include companies or teams such as FaZe, Cloud9 or TSM.
For more information on the data displayed, use the info button right next to the boxes.

Professional and semi-professional gaming competitions, such as Semi-Pro League
Tournaments and leagues, such as Dota 2 The International
Sponsorship deals and advertising, such as FaZe and Steelseries
Merchandise and ticketing for Esport tournaments
Streaming of tournaments, such as streaming on Twitch

Amateur competitions, such as Amateur Esports League
Streaming revenues of non-organized competitive gaming, such as casual gaming on Twitch
Digital and physical sales from video games, such as sales of Call of Duty
Digital tools associated with revenues from Esports, such as Teamspeak or Discord

The eSports market in Asia is experiencing steady growth, driven by factors such as increasing popularity and awareness among consumers, as well as the convenience of online services. However, the growth rate is subdued due to challenges in sub-markets such as sponsorship, merchandise sales and streaming. Other factors impacting the market include regulatory hurdles, limited media rights, and the impact of publisher fees on overall revenue.

Customer preferences: The growing popularity of eSports in Asia is fueling a demand for virtual reality (VR) and augmented reality (AR) gaming experiences. With the rise of mobile and cloud gaming, consumers are seeking more immersive and interactive gameplay, driving the adoption of VR and AR technologies. Additionally, the younger demographic in Asia is highly tech-savvy and embraces new technologies, making them a key target market for VR and AR gaming in the region. This trend is likely to continue as technology continues to advance and consumers look for more engaging and realistic gaming experiences.

Trends in the market: In Asia, the eSports market is experiencing a surge in mobile gaming, with a focus on multiplayer online battle arena (MOBA) and battle royale games. This trend is driven by the increasing popularity of smartphones and the growing accessibility of high-speed internet. Additionally, there is a rise in professional eSports teams and leagues, with major companies investing in the industry. This trajectory suggests a potential shift towards mobile eSports dominating the market, presenting opportunities for game developers and advertisers to tap into the growing audience. However, it also raises concerns about the sustainability of the industry, as mobile games tend to have shorter lifespans compared to PC or console games. Industry stakeholders must carefully consider the implications of this trend and adapt their strategies accordingly.

Local special circumstances: In South Korea, the eSports market has been thriving due to the country's strong gaming culture and infrastructure. The government has actively supported the growth of eSports, recognizing it as a legitimate sport and investing in training facilities and professional teams. Additionally, the country's advanced broadband network and widespread use of mobile devices have made it easier for individuals to participate in and spectate eSports events. This has led to a highly engaged and passionate fan base, as well as a competitive and lucrative market for eSports tournaments and sponsorships.

Underlying macroeconomic factors: The rapid growth of the eSports market in Asia is largely influenced by macroeconomic factors such as technological advancements, government support, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in eSports technology are experiencing significant market growth compared to regions with regulatory challenges and limited funding. Furthermore, the increasing popularity of eSports among the younger population and the rise of online gaming communities are driving the demand for eSports in Asia. The region's strong economic growth and increasing disposable income are also contributing to the growth of the eSports market as more individuals are able to afford and access gaming equipment and subscriptions.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports market, which comprises revenues from and users of professional competitive gaming content. This includes any professional and semiprofessional gaming competitions within tournaments or leagues that offer a championship title or prize money. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

The rapidly growing phenomenon surrounding eSports continues to gather steam. The intersection of gaming and sports offers an innovative wave of branding opportunities, engaging content and activations for millions across the world. It therefore comes as no surprise that the size of the global eSports market is expected to increase more than fivefold between 2023 and 2032, reaching a value of over 10 billion U.S. dollars within the next ten years.