Esports

In Europe, revenue in the Esports market is projected to reach US$1.4bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.05%, resulting in a projected market volume of US$1.9bn by 2029.
The largest market within this sector is Esports market_Betting, which is anticipated to have a market volume of US$923.5m in 2024.
Although most revenue is generated the United States with a projected market volume of US$1.1bn in 2024, in Europe remains a significant player in the Esports market landscape.
In Europe, the number of users in the Esports market is expected to amount to 165.8m users by 2029.
User penetration will be 17.8% in 2024 and is expected to rise to 22.4% by 2029.
Additionally, the average revenue per user (ARPU) in the European Esports market is expected to amount to US$10.86.
As Europe's esports market continues to grow, Germany's investment in infrastructure and talent development is positioning it as a leading hub in the industry.

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 Europe is experiencing modest growth due to factors such as increasing interest in digital entertainment, growing media coverage, and the convenience of online platforms. However, challenges such as limited sponsorship opportunities and regulations on gambling may impact the market's growth rate.

Customer preferences: The rise of eSports has been accompanied by a shift in consumer preferences towards more immersive and interactive gaming experiences. This trend is driven by the younger demographic's growing interest in competitive gaming and their demand for advanced technology and virtual reality. Additionally, the emergence of social media and live streaming platforms has created a new avenue for players and fans to engage with the eSports community, leading to a surge in online viewership and engagement. This trend is likely to continue as the eSports market continues to expand and attract a diverse and global audience.

Trends in the market: In Europe, the eSports market is experiencing a surge in popularity, with a growing number of players, teams, and tournaments emerging. This trend is being driven by the increasing accessibility of gaming technology and the rise of social media and streaming platforms, which have made it easier for audiences to engage with and follow their favorite players and teams. Additionally, the COVID-19 pandemic has accelerated this trend as more people turn to online forms of entertainment. This presents significant opportunities for industry stakeholders, such as game developers, sponsors, and event organizers, to tap into this growing market and expand their reach. However, it also poses challenges, such as ensuring fair competition, managing player health and wellness, and addressing diversity and inclusion in the industry. As the eSports market continues to evolve and attract a larger audience, it will be essential for industry stakeholders to stay updated on these trends and adapt their strategies accordingly to stay competitive.

Local special circumstances: In Europe, the eSports market is driven by the region's strong gaming culture and the availability of high-speed internet connections. Additionally, the diverse and multilingual population has created a demand for localized content and events, leading to the rise of regional leagues and tournaments. Furthermore, the European Union's recent recognition of eSports as a legitimate sport has opened up new opportunities for funding and partnerships in the industry. These unique factors have contributed to the rapid growth and development of the eSports market in Europe.

Underlying macroeconomic factors: The eSports market in Europe is heavily influenced by macroeconomic factors such as economic stability, government support, and investment in technology. Countries with strong economies and supportive policies for the gaming industry, such as Germany and the UK, have seen significant growth in the eSports market. On the other hand, countries with weaker economies and limited government support, such as Greece and Spain, have struggled to develop their eSports industry. Furthermore, the increasing popularity of gaming among the younger population and the rise of online streaming platforms have also contributed to the growth of the eSports market in Europe.

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.