Esports

In the Baltics, revenue in the Esports market is projected to reach US$7.8m in 2024.
This revenue is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.61%, leading to a projected market volume of US$9.3m by 2029.
The largest market within this market is Esports Betting, which is expected to have a market volume of US$4.7m in 2024.
While the United States generates the majority of revenue with a projected market volume of US$1.1bn in 2024, the Baltics are also witnessing growth in this sector.
In the Esports market, the number of users in the Baltics is expected to amount to 859.3k users by 2029.
User penetration in this region will be 24.8% in 2024 and is expected to rise to 33.3% by 2029.
The average revenue per user (ARPU) in the Baltics is projected to be US$11.61.
The Baltics are witnessing a surge in Esports engagement, driven by increased investment in local tournaments and a growing community of dedicated gamers.

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 Baltics has seen steady growth, influenced by factors such as increasing popularity of digital gaming, rising awareness among consumers, and the convenience of online services. The market is driven by sub-markets such as Sponsorship & Advertising, Merchandise & Ticketing, Streaming, Media Rights, Publisher Fees, and Esports Betting. However, the market's growth rate is minimal due to factors such as limited infrastructure and lack of government support.

Customer preferences: As the eSports market continues to grow in popularity, consumers are increasingly looking for innovative ways to engage with their favorite games and players. This has led to a rise in demand for virtual reality technology and immersive gaming experiences. Additionally, the rise of mobile gaming and the integration of social media platforms have made eSports more accessible and interactive for a wider audience. This shift towards a more connected and immersive gaming experience is driven by the evolving lifestyle factors of younger generations and their desire for constant connectivity.

Trends in the market: In the Baltics, there is a surge in the popularity of eSports, with more players, teams, and tournaments emerging in the region. This trend is expected to continue, as the region has a strong gaming culture and a growing number of internet users. Additionally, there is a growing interest in professionalizing eSports in the region, with the establishment of training facilities and the involvement of traditional sports clubs. This presents significant opportunities for industry stakeholders, including game developers, event organizers, and sponsors. However, it also brings challenges, such as ensuring fair competition and addressing potential issues related to player health and well-being. As the eSports market in the Baltics continues to grow, it will be crucial for stakeholders to stay updated on the latest trends and adapt their strategies accordingly.

Local special circumstances: In the Baltics, the eSports market is gaining traction due to the region's strong tech-savvy culture and high internet penetration rates. The countries' small size and close proximity to each other also allow for easy cross-border collaboration and tournaments. Additionally, the region's relatively low cost of living and supportive government policies make it an attractive destination for eSports events and teams. However, language barriers and a lack of established infrastructure and funding may still pose challenges for the market's growth.

Underlying macroeconomic factors: The eSports market in the Baltics is heavily impacted by macroeconomic factors such as the overall economic health of the countries, as well as global economic trends and fiscal policies. Countries with strong economies and supportive government policies for the gaming industry, such as Estonia and Lithuania, are experiencing faster market growth compared to countries with weaker economies and limited government support. Furthermore, the growing popularity of eSports among younger generations and the increasing availability of high-speed internet and advanced technology are also contributing to the market's growth in the region.

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.