Esports

In Nigeria, revenue in the Esports market is projected to reach US$17.9m in 2024.
Revenue in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.86%, which will lead to a projected market volume of US$26.2m by 2029.
The largest market within this market is Esports Betting, anticipated to have a market volume of US$12.6m in 2024.
The majority of revenue, however, is generated the United States, with a projected market volume of US$1.1bn in 2024.
In the Esports market, the number of users in Nigeria is expected to reach 13.4m users by 2029.
User penetration in Nigeria will be 4.9% in 2024, and it is expected to increase to 5.2% by 2029.
Furthermore, the average revenue per user (ARPU) in Nigeria is anticipated to amount to US$1.60.
Nigeria's burgeoning youth population is driving a significant surge in esports participation and investment, reflecting the country's increasing digital engagement and entertainment consumption.

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 Nigeria is experiencing mild growth, influenced by various factors such as increasing popularity of digital technologies, rising interest in eSports among consumers, and the convenience offered by online services. These sub-markets contribute to the overall growth rate, with sponsorship & advertising, merchandise & ticketing, streaming, media rights, publisher fees, and eSports betting all playing a role. However, challenges such as limited infrastructure and lack of investment may impact the market's growth rate in the future.

Customer preferences: The eSports market in Nigeria is witnessing a surge in popularity, as more and more consumers are turning to online gaming as a means of entertainment and socialization. This trend is fueled by the country's young population, who are highly tech-savvy and have a strong affinity for competitive gaming. As a result, there has been a growing demand for high-quality gaming equipment and accessories, as well as an increase in online gaming communities and tournaments. This shift towards digital forms of entertainment is also influenced by the cultural value placed on communal activities and social connection, which can be fulfilled through virtual gaming experiences.

Trends in the market: In Nigeria, the eSports market is experiencing a surge in online tournaments and streaming platforms, with a growing number of players and viewers. This trend is expected to continue as the country's internet and technology infrastructure improves, providing more opportunities for players and businesses. It also opens up avenues for sponsorship and advertising deals, creating a potential economic boost for the industry. Additionally, the rise of mobile gaming and the popularity of battle royale games are shaping the market's trajectory, leading to the development of specialized eSports events and teams. Industry stakeholders should take note of these trends and capitalize on them to stay competitive and tap into the growing market in Nigeria.

Local special circumstances: In Nigeria, the eSports market is still in its early stages due to limited internet access and a lack of infrastructure. However, the country's growing youth population and passion for gaming make it a promising market. Additionally, the Nigerian government has recognized the potential of eSports and is taking steps to promote its growth. This includes hosting international tournaments and providing support for local players and teams. Furthermore, the cultural significance of gaming in Nigeria, as a form of entertainment and social interaction, adds to the market's potential. Such factors make Nigeria a unique market for eSports, with its own set of challenges and opportunities.

Underlying macroeconomic factors: The eSports market in Nigeria is heavily influenced by macroeconomic factors such as government policies, technological advancements, and investment in digital infrastructure. As a developing country, Nigeria is experiencing rapid economic growth and an increasing focus on technology and innovation. This, coupled with favorable government policies promoting the growth of the digital economy, has led to a surge in the popularity and demand for eSports in the country. Additionally, Nigeria's large youth population and growing middle class are key drivers of the market, as they have significant spending power and are highly engaged in digital and online activities.

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.