Esports

In the CIS region, revenue in the Esports market is projected to reach US$43.7m in 2024.
This revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.85%, leading to a projected market volume of US$58.0m by 2029.
The dominant market within this market is Sponsorship & Advertising, which is anticipated to have a market volume of US$32.6m in 2024.
While the largest share of revenue is generated the United States, the CIS region is also expected to contribute significantly.
By 2029, the number of users in the Esports market in the CIS is expected to reach 15.7m users.
User penetration in this region will be 8.9% in 2024 and is projected to increase to 11.1% by 2029.
Additionally, the average revenue per user (ARPU) in the CIS is expected to amount to US$3.42.
The CIS region is witnessing a surge in esports investment, driven by increased youth engagement and a growing culture of competitive gaming.

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 CIS is seeing sluggish growth, influenced by factors such as slow adoption of digital technologies, lack of awareness among consumers, and limited convenience in online services. This is reflected in the sub-markets, where Sponsorship & Advertising, Merchandise & Ticketing, and Media Rights are not performing as well as expected. However, there is potential for growth in Streaming, Publisher Fees, and Esports Betting, which could drive overall market growth in the future.

Customer preferences: As the popularity of eSports continues to grow, consumers are increasingly seeking out virtual experiences and online gaming platforms for entertainment and socialization. This trend is driven by the increasing prevalence of digital technology and the rise of gaming as a form of community and self-expression. This shift towards virtual interactions is also influenced by the desire for convenient and accessible forms of entertainment, especially among younger demographics who are more digitally savvy and value immersive experiences.

Trends in the market: In CIS and eSports Market, there is a noticeable increase in the adoption of mobile gaming, with more players opting for smartphone and tablet devices over traditional gaming consoles. This trend is driven by the convenience and accessibility of mobile gaming, as well as the rise of popular mobile eSports titles. Additionally, there is a growing trend of cross-regional partnerships and collaborations between CIS and international eSports organizations, showcasing the global potential of the market. As the mobile gaming market continues to grow, industry stakeholders will need to capitalize on the trend by developing mobile-friendly games and expanding their reach through strategic partnerships. This could also lead to a more diverse and competitive eSports landscape, with new players and teams emerging from previously untapped regions.

Local special circumstances: In the CIS region, the eSports market is heavily influenced by the popularity of traditional sports, particularly in Russia and Ukraine. This has led to a strong emphasis on professional teams and tournaments, with a significant fanbase and sponsorship opportunities. Additionally, the region's history of computer science and technology has fostered a strong gaming culture, with a large pool of talented players and a thriving industry. However, certain countries within the CIS, such as Belarus and Kazakhstan, have stricter regulations on gaming, making it challenging for eSports to fully flourish in those markets.

Underlying macroeconomic factors: The growth of the eSports market is largely influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in digital infrastructure. Countries with advanced technological infrastructure and supportive regulatory environments are experiencing faster market growth compared to regions with limited digital infrastructure and regulatory challenges. Additionally, the increasing popularity of online gaming and live streaming, coupled with the rise of digital consumption and the growing youth population, are driving the demand for eSports in the CIS 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.