Esports

In Australia and Oceania, revenue in the Esports market is projected to reach US$149.0m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 6.02%, resulting in a projected market volume of US$199.6m by 2029.
The largest market within this region is Esports Betting, with a market volume of US$124.3m in 2024.
Although most revenue is generated the United States, the Esports market Australia and Oceania is also expanding.
The number of users in the Esports market in this region is expected to amount to 8.3m users by 2029.
User penetration will be 21.1% in 2024 and is expected to hit 24.8% by 2029.
The average revenue per user (ARPU) Australia and Oceania is expected to amount to US$22.13.
Australia's burgeoning esports scene is increasingly attracting investment, fostering local talent, and integrating gaming into mainstream entertainment culture across Oceania.

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 Australia & Oceania is facing slow growth, impacted by factors such as limited sponsorships, lack of mainstream media coverage, and government regulations on betting. Despite the potential in sub-markets like streaming and merchandise, the overall growth rate remains subdued due to these challenges. However, increasing interest and investments from international players could drive growth in the future.

Customer preferences: The eSports market has seen a significant rise in popularity and revenue, as more consumers seek out virtual entertainment options. This trend is further fueled by the rise of social media and online streaming platforms, which allow for easy access and engagement with eSports events. Additionally, the market has seen a surge in demand for virtual reality and augmented reality technologies, as consumers look for more immersive and interactive gaming experiences. This shift towards virtual entertainment is driven by the growing preference for convenient and accessible forms of entertainment, especially among younger demographics.

Trends in the market: In Australia and Oceania, the eSports market is experiencing a surge in popularity, with a significant increase in viewership and investment. This trend is expected to continue, as major sporting events have been postponed due to the pandemic, leading to a greater demand for online entertainment. This shift towards digital platforms has also opened up new opportunities for sponsorship and advertising, making it an attractive market for businesses. Additionally, with advancements in technology and the rise of mobile gaming, there is a growing trend of casual gamers turning into eSports enthusiasts. This trend is significant as it expands the audience and potential revenue streams for the industry. Industry stakeholders should take note of these trends and capitalize on the growing interest in eSports in the region.

Local special circumstances: In Australia and Oceania, the eSports market is experiencing growth due to the region's high internet penetration and tech-savvy population. Additionally, the cultural emphasis on sports and competitive gaming has contributed to the rise of local eSports events and tournaments. The unique geography of the region, with its scattered islands and vast distances, has also led to the development of online gaming communities and platforms, making eSports accessible to a wider audience. Furthermore, the relatively relaxed regulatory environment has allowed for the growth of eSports betting, with Australia being one of the top countries in the world for eSports betting revenue.

Underlying macroeconomic factors: The eSports Market in Australia & Oceania is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in eSports are experiencing rapid market growth, while those facing regulatory challenges and limited funding are struggling to keep pace. Moreover, the growing popularity of eSports among the younger population is driving the demand for innovative technologies and platforms to enhance the gaming experience. Additionally, the region's strong economic growth and increasing disposable income are contributing to the market's expansion, as more consumers are able to afford the necessary equipment and subscriptions for eSports participation.

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.