Esports

In the GCC, revenue in the Esports market is projected to reach US$22.4m in 2024.
The revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 8.58%, leading to a projected market volume of US$33.8m by 2029.
The largest market within this market is Sponsorship & Advertising, which is expected to have a market volume of US$9.6m in 2024.
Although most revenue is generated the United States with a projected market volume of US$1.1bn in 2024, the GCC is also witnessing significant growth in this sector.
In the Esports market, the number of users in the GCC is expected to reach 5.9m users by 2029.
User penetration in the GCC will be at 9.9% in 2024 and is projected to increase to 11.8% by 2029.
Furthermore, the average revenue per user (ARPU) in the GCC is expected to amount to US$4.80.
The GCC region is witnessing a surge in esports investments, fostering a vibrant community and attracting global gaming tournaments to its dynamic markets.

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 GCC is on a steady growth trajectory, driven by factors such as increasing investment in Sponsorship & Advertising, rising popularity of Merchandise & Ticketing, and the convenience of Streaming and online services. The market also benefits from the growing demand for Media Rights and Publisher Fees, as well as the emerging trend of Esports Betting. Despite its average growth rate, the market is impacted by various factors such as regulatory challenges, evolving consumer preferences, and technological advancements.

Customer preferences: With the rise of social media and online gaming platforms, the eSports market in the GCC region has seen a significant increase in consumer engagement and interest. This trend is largely driven by the younger generation, who are becoming more digitally connected and tech-savvy. As a result, eSports tournaments and events are gaining popularity as a form of entertainment and competition. Additionally, the demand for virtual reality and augmented reality gaming experiences is on the rise, as consumers seek more immersive and interactive gameplay. This shift towards digital entertainment options is also influenced by the growing emphasis on staying at home and social distancing, making eSports a convenient and safe alternative for entertainment.

Trends in the market: In the GCC region, the eSports market is experiencing a surge in viewership and participation, with the popularity of online gaming and live streaming platforms on the rise. This trend is expected to continue as technology advancements and internet accessibility continue to improve in the region. This presents significant opportunities for industry stakeholders to capitalize on the growing interest in eSports, such as developing partnerships with popular gaming influencers and organizing large-scale tournaments. Additionally, the rise of eSports in the GCC could also have a positive impact on the overall gaming industry and drive economic growth in the region.

Local special circumstances: In the GCC region, the eSports market is thriving due to the high internet and mobile phone penetration rates, as well as the government's support for the development of the industry. The region's young and tech-savvy population has also contributed to the growth of eSports, with local players and teams gaining international recognition. Additionally, the cultural value placed on competitive gaming has led to the popularity of eSports events and tournaments, attracting both local and international audiences. However, strict regulations on online gaming and internet access in certain countries, such as Saudi Arabia, can pose challenges for the growth of the eSports market in the region.

Underlying macroeconomic factors: The eSports market in GCC is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in infrastructure. Countries with favorable regulatory environments and strong investment in eSports infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the growing popularity of gaming and the emergence of new technologies such as virtual reality are driving the demand for eSports in the region. Furthermore, the growing young population in the GCC countries and their increasing interest in competitive gaming are contributing to the growth of the 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.