Key regions: China, United States, Asia, Germany, France
The eSports market in BRICS is experiencing steady growth, driven by factors such as increasing digitalization, growing interest in competitive gaming among consumers, and the convenience of online services. However, the market's growth rate is subdued due to challenges in the sub-markets of Sponsorship & Advertising, Merchandise & Ticketing, Streaming, Media Rights, Publisher Fees, and Esports Betting. These challenges include lack of mainstream recognition and regulatory hurdles.
Customer preferences: With the rise of social media and online gaming communities, eSports has become more than just a niche hobby - it is now a global phenomenon. As a result, there has been a notable shift towards virtual events and tournaments, with consumers preferring to watch and participate in eSports competitions from the comfort of their own homes. This trend is further fueled by the increasing popularity of live streaming platforms, creating a new market for virtual experiences and entertainment. Additionally, the growing interest in eSports has led to an increase in sponsorships and investments from mainstream companies, indicating its potential for long-term growth and profitability.
Trends in the market: In BRICS, the eSports market is experiencing a surge in viewership and revenue, with Brazil and China leading the way. The trend of traditional sports organizations investing in eSports teams and events is gaining momentum, providing legitimacy and mainstream recognition. This trajectory is significant as it opens up new opportunities for revenue streams and partnerships, while also increasing the global reach of eSports. Potential implications for industry stakeholders include increased competition, the need for more diverse and inclusive marketing strategies, and the potential for eSports to become a major player in the entertainment industry.
Local special circumstances: In China, the eSports market has seen explosive growth due to the country's large population of tech-savvy youth and government support for the industry. The market is also heavily influenced by the country's gaming culture and its history of competitive gaming. In Russia, the market is driven by the popularity of eSports among young people and the country's strong presence in international eSports competitions. Additionally, the market is impacted by government regulations on gaming and the rise of local eSports teams and tournaments.
Underlying macroeconomic factors: The eSports market in BRICS countries is heavily influenced by macroeconomic factors such as economic growth, government policies, and investment in technology. These countries are experiencing rapid economic growth, resulting in increased disposable income and a growing middle class population. This, along with favorable government policies and investments in technology, has created a conducive environment for the growth of the eSports market. Additionally, the rising popularity of eSports among the younger generation and the increasing penetration of internet and mobile devices in these countries are major factors driving the market growth. However, challenges such as regulatory barriers and limited infrastructure in some BRICS countries may hinder the growth of the eSports market in these regions.
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.
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