Esports - Kenya

Kenya

In Kenya, revenue in the Esports market is projected to reach US$7.6m in 2024.
This revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.56%, leading to a projected market volume of US$9.9m by 2029.
The largest market within this market is Esports Betting, which is expected to have a market volume of US$4.0m in 2024.
While most revenue is generated the United States with a projected market volume of US$1,070.0m in 2024, in Kenya is also witnessing growth in this sector.
In the Esports market, the number of users in Kenya is expected to amount to 6.1m users by 2029.
User penetration in Kenya will be 8.6% in 2024 and is projected to reach 9.9% by 2029.
The average revenue per user (ARPU) in Kenya is expected to amount to US$1.57.
Kenya's burgeoning esports scene is witnessing increased youth engagement, fueled by rising internet accessibility and a growing culture of competitive gaming.

Key regions: China, United States, Asia, Germany, France

Market

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Analyst Opinion

The eSports market in Kenya has been seeing gradual growth, influenced by factors such as increasing sponsorships, merchandise sales, streaming services, and publisher fees. However, minimal growth rate is impacted by limited media rights and regulations in the emerging industry.

Customer preferences: As the popularity of eSports continues to rise in Kenya, there has been a noticeable shift in consumer preferences towards virtual entertainment and gaming experiences. This trend is driven by the country's growing tech-savvy youth population and their increasing interest in competitive gaming. Additionally, the rise of online streaming platforms and social media has allowed for greater visibility and engagement with eSports events, further fueling its growth. As a result, traditional forms of entertainment, such as live sports and television, have seen a decline in popularity among this demographic.

Trends in the market: In Kenya, the eSports market is seeing a surge in popularity, with a growing number of tournaments and events being organized. This trend is expected to continue, as the country's gaming community continues to expand and professionalize. This presents significant opportunities for industry stakeholders, such as gaming companies, event organizers, and sponsors. Additionally, the rise of eSports in Kenya has the potential to boost the country's economy and create jobs in the gaming industry. With the government showing support for eSports, it is likely that we will see continued growth and development in this market.

Local special circumstances: In Kenya, the eSports market is gaining traction due to the country's high internet penetration rate and its growing youth population, which is highly tech-savvy. Additionally, the country's thriving mobile money industry has made it easier for Kenyans to access and participate in eSports tournaments. Furthermore, the government's investment in ICT infrastructure and support for the gaming industry has created a conducive environment for the growth of eSports in the country. This unique combination of factors has contributed to the rapid expansion of the eSports market in Kenya, setting it apart from other markets in the world.

Underlying macroeconomic factors: The eSports market in Kenya is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital 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 rising popularity of eSports globally and the increasing number of young gamers in Kenya are driving the demand for eSports tournaments and events, leading to overall market growth.

Methodology

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.