Esports

In Egypt, revenue in the Esports market is projected to reach US$4.6m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 9.41%, resulting in a projected market volume of US$7.2m by 2029.
The largest market in this sector is Sponsorship & Advertising, with a market volume of US$1.4m in 2024.
Most revenue is generated the United States, which has a projected market volume of US$1.1bn in 2024.
In the Esports market withEgypt, the number of users is expected to amount to 8.5m users by 2029.
User penetration in Egypt will be 5.9% in 2024 and is expected to hit 6.9% by 2029.
The average revenue per user (ARPU) in Egypt is expected to amount to US$0.68.
Egypt's burgeoning youth demographic is increasingly embracing esports, transforming the nation into a vibrant hub for competitive gaming and digital entertainment.

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 Egypt is experiencing minimal growth due to factors such as limited sponsorships and advertising opportunities, low awareness among consumers, and the lack of infrastructure for merchandise and ticketing sales. Additionally, the slow growth can be attributed to strict regulations on streaming, media rights, publisher fees and eSports betting. However, with the increasing popularity of eSports globally, there is potential for growth in the future.

Customer preferences: As the popularity of eSports continues to grow in Egypt, consumers are increasingly looking for convenient and accessible ways to engage with and participate in this market. This has led to a surge in demand for online streaming platforms and virtual tournaments, providing opportunities for individuals to connect with others and compete from the comfort of their own homes. Moreover, the rise of eSports has also created a demand for virtual coaching and training programs, catering to the growing trend of individuals seeking virtual forms of entertainment and competition.

Trends in the market: In Egypt, the eSports market is experiencing significant growth, with a rise in organized tournaments, sponsorships, and investments in infrastructure. This trend is expected to continue, as the government has recognized eSports as an official sport and is investing in facilities and training programs. Additionally, the rise of mobile gaming and the adoption of virtual reality technology are shaping the future of eSports in Egypt. Industry stakeholders, such as game developers and event organizers, must adapt to these trends to stay competitive and meet the demands of the growing market. This also presents opportunities for new players to enter the market and tap into the potential of this rapidly evolving industry.

Local special circumstances: In Egypt, the eSports market is driven by the increasing availability of affordable internet access and the country's young population with a strong interest in gaming and technology. With a growing number of local eSports events and tournaments, the market is also influenced by the country's rich history and culture, showcasing a unique blend of traditional and modern elements. Furthermore, the government's support for the development of the digital sector and the rise of digital payments have also contributed to the growth of the eSports market in Egypt.

Underlying macroeconomic factors: The eSports market in Egypt is impacted by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. The growth of the market is closely tied to the country's economic stability and investment in technology and infrastructure. Countries with strong economic growth and supportive government policies tend to have a thriving eSports market, with increased investments and opportunities for growth. Additionally, the growing interest in eSports among the younger population in Egypt, coupled with the rise of digital technology, is driving the demand for eSports games and events in the country.

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.