Esports

In Colombia, revenue in the Esports market is projected to reach US$24.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.70%, resulting in a projected market volume of US$33.8m by 2029.
The largest market in Colombia is Esports Betting, with a market volume of US$19.4m in 2024.
Most revenue in the Esports market is generated the United States, with a projected market volume of US$1.1bn in 2024.
In Colombia's Esports market, the number of users is expected to amount to 5.7m users by 2029.
User penetration in Colombia will be 8.6% in 2024 and is expected to hit 10.5% by 2029.
The average revenue per user (ARPU) in Colombia is expected to amount to US$5.43.
In Colombia, the burgeoning interest in esports is fostering a vibrant community, with increasing local tournaments and a growing base of passionate 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 Colombia is experiencing subdued growth due to factors such as limited sponsorships, low media rights deals, and the lack of a developed betting market. However, with the increasing popularity of online gaming and the potential for growth in merchandise and ticket sales, the market is expected to see significant growth in the coming years. The convenience and accessibility of online streaming platforms are also contributing to the overall growth of the market.

Customer preferences: With the rise of eSports in Colombia, there has been a noticeable increase in demand for gaming peripherals and equipment, as well as virtual coaching and training services. This shift highlights the growing preference for online gaming and the desire for personalized and convenient ways to improve gaming skills and performance. Additionally, the rise of mobile gaming and the availability of affordable smartphones has opened up a new market for casual gamers, particularly among younger demographics. This trend is also indicative of the increasing importance of digital entertainment and leisure options among consumers.

Trends in the market: In Colombia, the eSports market is experiencing a surge in online gaming platforms, with a growing number of players and spectators. This trend is significant as it reflects the increasing popularity of eSports among the country's youth, who are highly engaged in digital entertainment and technology. Furthermore, the rise of eSports is also opening up new opportunities for industry stakeholders, such as game developers, advertisers, and sponsors, to tap into this rapidly growing market. With the potential for increased revenue and global recognition, the trajectory of this trend is expected to continue, making it crucial for industry players to stay ahead of the curve and capitalize on the potential implications of this emerging market.

Local special circumstances: In Colombia, the eSports market is growing rapidly due to the country's high internet penetration and tech-savvy population. Additionally, the government's support for the digital economy has led to the development of local eSports leagues and events. The country's cultural love for competitive gaming and its diverse geography, with both urban and rural areas, presents unique opportunities for eSports growth. However, regulatory challenges such as internet connectivity issues and the lack of formal recognition of eSports as a sport may hinder its full potential.

Underlying macroeconomic factors: The eSports market in Colombia is heavily influenced by macroeconomic factors, including global economic trends, national economic health, and fiscal policies. As the country continues to experience economic growth and stability, the eSports market is expected to see significant growth as well. Additionally, favorable regulatory environments and strong investments in technology and infrastructure are driving the market forward. With an increasing prevalence of technology usage and a younger population, Colombia is well-positioned to become a key player in the global eSports market.

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.