Esports

In MENA, revenue in the Esports market is projected to reach US$50.9m in 2024.
Revenue in this region is expected to exhibit an annual growth rate (CAGR 2024-2029) of 8.20%, leading to a projected market volume of US$75.5m by 2029.
The largest market within the Esports market in MENA is Sponsorship & Advertising, which is expected to have a market volume of US$18.7m in 2024.
Although most revenue is generated the United States, in the Middle East and North Africa is also witnessing substantial developments in this sector.
By 2029, the number of users in the Esports market in MENA is anticipated to reach 34.9m users.
User penetration in this region will be 9.2% in 2024 and is projected to increase to 11.2% by 2029.
Furthermore, the average revenue per user (ARPU) in MENA is expected to amount to US$1.88.
Esports in the MENA region is rapidly gaining traction, with countries like Saudi Arabia and the UAE leading investment in gaming infrastructure and events.

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 MENA is experiencing mild growth, driven by increasing adoption of digital technologies, growing awareness of eSports among consumers, and the convenience of online services. Factors such as sponsorship deals, merchandise sales, streaming revenues, media rights, publisher fees, and eSports betting also contribute to the overall market growth. However, challenges such as limited infrastructure and regulatory restrictions may impact the market's growth rate.

Customer preferences: In the MENA region, there has been a noticeable rise in demand for eSports tournaments and events, with a particular focus on mobile gaming. This shift is attributed to the growing popularity of mobile devices and the increased accessibility of high-speed internet. Additionally, there has been a shift towards more diverse and inclusive gaming content, catering to the diverse cultural backgrounds and preferences of the region. This trend is expected to continue as the eSports market in the region continues to expand and attract a larger and more diverse audience.

Trends in the market: In the MENA region, the eSports market is experiencing a surge in mobile gaming, with a significant increase in mobile eSports tournaments and events. This trend is driven by the region's high smartphone penetration and the popularity of mobile games. Additionally, there is a growing interest in eSports among traditional sports organizations, with many investing in eSports teams and hosting tournaments. This trend is significant as it opens up new opportunities for partnerships and sponsorships in the industry. It also highlights the potential for growth in the mobile gaming market in the region. As a result, industry stakeholders can expect to see more investments and collaborations in the mobile eSports sector in the coming years.

Local special circumstances: In MENA, the eSports market is heavily influenced by the region's strong youth population, with a high percentage of mobile and internet users. This has led to a rise in mobile eSports games and platforms catering to the local player base. Additionally, cultural factors such as the popularity of traditional sports like soccer and the region's competitive nature have also contributed to the growth of eSports. In terms of regulations, some countries in MENA have strict censorship laws and limitations on online gaming, which can impact the availability and popularity of certain eSports titles.

Underlying macroeconomic factors: The MENA eSports market is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and other financial indicators. Countries with strong economic growth and favorable government policies supporting the growth of eSports are experiencing significant market expansion. In contrast, regions with economic challenges and limited investment in eSports infrastructure are facing slower market growth. Moreover, the rising popularity of eSports among the younger population and the increasing disposable income in the region are driving the demand for eSports events and tournaments, contributing to the market's growth.

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.