Esports

In the Nordics, revenue in the Esports market is projected to reach US$153.8m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.64%, leading to a projected market volume of US$212.2m by 2029.
The largest market within the Esports market in the Nordics is Esports Betting, which has a market volume of US$97.4m in 2024.
While most revenue is generated the United States, with a projected market volume of US$1.1bn in 2024, the Nordics also contribute to the overall growth of the market.
In the Esports market sector, the number of users in the Nordics is expected to reach 7.6m users by 2029.
User penetration in the Nordics will be 22.7% in 2024 and is anticipated to rise to 27.0% by 2029.
Furthermore, the average revenue per user (ARPU) in the Nordics is expected to amount to US$24.54.
In the Nordics, the Esports market is experiencing a surge in popularity, driven by increasing youth engagement and robust digital infrastructure.

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 Nordics is experiencing steady growth, driven by factors such as increasing popularity of competitive gaming, growing interest from sponsors and advertisers, and the convenience of online platforms for streaming and ticketing. However, the market growth rate is subdued due to challenges such as limited media rights deals and strict regulations on eSports betting. Despite this, the market is expected to continue growing as the region becomes a hub for major eSports events and tournaments.

Customer preferences: As the popularity of eSports continues to rise in the Nordics, we are seeing a shift in consumer preferences towards more immersive and interactive experiences. This has led to a surge in demand for virtual reality (VR) and augmented reality (AR) technologies, as well as the use of live streaming platforms for real-time engagement. Additionally, the growing trend of gaming as a form of socialization has also contributed to the rise of eSports, with more individuals seeking out online communities and tournaments to connect with others who share similar interests.

Trends in the market: In the Nordics and eSports market, there is a growing trend of incorporating virtual and augmented reality technology into gaming experiences. This trend is driven by the demand for more immersive and realistic gameplay, as well as the potential for eSports tournaments to be broadcasted in VR. This has significant implications for industry stakeholders as it opens up new revenue streams and audience engagement opportunities. Additionally, there is an increasing focus on incorporating sustainability and social responsibility into the eSports industry, with initiatives such as eco-friendly tournaments and partnerships with non-profit organizations. This trend not only aligns with the values of the Nordic countries, but also attracts a wider audience and strengthens the industry's reputation.

Local special circumstances: In the Nordics, the eSports market is thriving due to the region's strong technological infrastructure and high internet penetration rates. The cultural emphasis on equality and inclusivity has also played a role in the popularity of eSports, as it provides a diverse and accessible form of entertainment. Additionally, the region's supportive regulatory environment and government investments in eSports have further propelled its growth.

Underlying macroeconomic factors: The eSports market in Nordic countries is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in infrastructure. With strong support from governments and a thriving technology sector, the Nordics have become a hub for eSports development and innovation. Additionally, the region's stable economic health and high levels of disposable income have contributed to the growth of the eSports market. As global economic trends continue to shift towards digitalization, the Nordics are well-positioned to capitalize on the growing demand for eSports and solidify their position as a major player in the global 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.