Esports

In the EU-20.5%, revenue in the Esports market is projected to reach US$1.1bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.02%, resulting in a projected market volume of US$1.5bn by 2029.
The largest market within this market is Esports market_Betting, which is anticipated to have a market volume of US$704.7m in 2024.
Despite the prominence of the EU-20.5%, most revenue is generated the United States, with a projected market volume of US$1.1bn in 2024.
In the EU-20.5% Esports market, the number of users is expected to amount to 107.9m users by 2029.
User penetration in the EU-20.5% will be [penetration_currentlayer_yeartoday] in 2024 and is anticipated to reach 25.7% by 2029.
Furthermore, the average revenue per user (ARPU) in the EU-20.5% is expected to amount to US$12.51.
The EU-27 is witnessing a surge in esports viewership, with countries like Germany and France leading in both participation and investment opportunities.

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 the EU-27 is experiencing steady growth due to increasing adoption of digital technologies, rising popularity among consumers, and the convenience of online services. Factors such as sponsorship, advertising, merchandise, streaming, media rights, publisher fees, and eSports betting contribute to this growth. However, the market's overall growth rate is subdued due to factors such as lack of mainstream recognition and regulations.

Customer preferences: The eSports market in the EU-27 has witnessed a significant increase in consumer engagement, with a growing interest in live streaming and online gaming communities. This trend is driven by a shift towards virtual entertainment and social interaction, particularly among younger demographics. Additionally, the rise of mobile gaming has opened up new opportunities for eSports, catering to the on-the-go lifestyle of consumers. As a result, brands are leveraging these digital platforms to reach and engage with a wider audience, tapping into the growing trend of online gaming and socializing.

Trends in the market: In the EU-27, there is a growing trend of incorporating eSports into traditional sports events, with major tournaments featuring eSports alongside traditional sports. This trend highlights the potential for eSports to become a mainstream form of entertainment and competition. Additionally, there is a rise in online streaming platforms dedicated to eSports, allowing for increased viewership and revenue opportunities. These developments suggest a promising future for the eSports industry in Europe, with potential implications for stakeholders such as game developers, sponsors, and media companies. As eSports continues to gain popularity and recognition, we can expect to see further investment and innovation in this market.

Local special circumstances: In Germany, the eSports market has been rapidly growing due to the country's strong gaming culture and high internet penetration rate. The popularity of eSports events, such as the ESL One tournament, has also attracted major sponsorships from German companies. Additionally, Germany's strict regulations on gambling have allowed eSports betting to thrive, making it a major revenue stream for the industry. Moreover, the country's location in the heart of Europe has made it a hub for international eSports events, further boosting the market's growth.

Underlying macroeconomic factors: The eSports market in the EU-27 is heavily influenced by macroeconomic factors such as technological advancements, consumer spending, and government policies. With the increasing popularity of online gaming and advancements in technology, the market is expected to experience significant growth. Additionally, favorable government policies and investments in digital infrastructure are also contributing to the market's growth. However, economic downturns and fluctuations in consumer spending can have a negative impact on the market. Furthermore, the growing popularity and acceptance of eSports globally are also driving its growth in the EU-27 region. The availability of high-speed internet and the rise of mobile gaming are also key factors influencing the market's performance. Overall, the market is expected to continue its upward trend, driven by favorable macroeconomic conditions and the increasing demand for online gaming.

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.