Esports

Revenue in the Esports market in NAFTA is projected to reach US$1.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.90%, resulting in a projected market volume of US$1.9bn by 2029.
The largest market within Esports market in NAFTA is Esports market_Betting, with a market volume of US$883.7m in 2024.
Most revenue in the Esports market is generated the United States, which has a projected market volume of US$1.1bn in 2024.
In the Esports market in NAFTA, the number of users is expected to amount to 108.7m users by 2029.
User penetration in this market will be 16.0% in 2024 and is expected to reach 20.7% by 2029.
The average revenue per user (ARPU) in NAFTA is expected to amount to US$15.77.
In the United States, the Esports market is increasingly driven by mainstream media partnerships and a growing acceptance among traditional sports fans.

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 NAFTA is experiencing steady growth due to factors such as increasing popularity of digital gaming, rising awareness among consumers, and the convenience of online platforms. The market's average growth rate is influenced by factors such as sponsorships, merchandise sales, streaming services, media rights, publisher fees, and eSports betting.

Customer preferences: As the eSports industry continues to gain mainstream popularity, consumers are increasingly looking for ways to enhance their gaming experience. This has led to a rise in demand for virtual reality (VR) technology and immersive gaming experiences. Additionally, the growing influence of social media and online communities has also played a significant role in shaping consumer preferences, with online tournaments and streaming platforms becoming the preferred way for gamers to connect and compete. Furthermore, the rise of mobile gaming and cross-platform compatibility has opened up new opportunities for the industry to reach a wider audience.

Trends in the market: In the eSports market, there is a notable trend of increased investment and sponsorships from traditional sports teams and organizations. This trend is expected to continue as eSports gains mainstream recognition and viewership. Additionally, there is a growing focus on diversity and inclusivity in the industry, with efforts being made to increase representation of women and marginalized communities. These trends have significant implications for industry stakeholders, as they present opportunities for growth and expansion, but also pose challenges in terms of regulation and ethical considerations. As the eSports market continues to evolve, it will be crucial for stakeholders to adapt and innovate in order to stay competitive and meet the demands of a rapidly changing landscape.

Local special circumstances: In the eSports market, North America dominates the industry due to its advanced technological infrastructure and strong gaming culture. However, in Mexico, the market is influenced by government regulations that classify eSports as a form of gambling, limiting its growth potential. In Canada, the market is driven by the country's diverse population, with a significant interest in competitive gaming among immigrant communities. Additionally, the vast geography of the country has led to the development of regional leagues and tournaments, creating a unique localized eSports landscape.

Underlying macroeconomic factors: The eSports market is heavily influenced by macroeconomic factors, including the overall economic climate, government policies, and financial indicators. Countries with strong economies and supportive regulatory environments, such as the United States, Canada, and Mexico under NAFTA, are experiencing rapid growth in the eSports market. These countries have favorable conditions for investment and innovation, leading to the development of advanced technologies and infrastructure for eSports. Furthermore, the rising global popularity of eSports is also contributing to the market's growth, as it attracts investments and sponsorship from major companies and organizations. This, coupled with the increasing disposable income and changing consumer preferences towards digital entertainment, is expected to further drive 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.