Esports

In the Philippines, revenue in the Esports market is projected to reach US$25.1m in 2024.
Revenue in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.02%, leading to a projected market volume of US$35.3m by 2029.
The largest market withPhilippines' Esports market is Esports Betting, which is anticipated to have a market volume of US$17.0m in 2024.
Most revenue is expected to be generated the United States, with a projected market volume of US$1.1bn in 2024.
In the Esports market in the Philippines, the number of users is expected to reach 11.1m users by 2029.
User penetration will be 7.5% in 2024 and is anticipated to increase to 8.7% by 2029.
The average revenue per user (ARPU) in this market is expected to amount to US$2.82.
The Philippines is witnessing a rapid growth in esports engagement, driven by a vibrant gaming culture and increasing investment in local talent and 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 the Philippines is experiencing moderate growth, influenced by factors such as increasing popularity of online gaming, growing interest from sponsors and advertisers, and the convenience of streaming services. However, the market's growth rate is tempered by limited media rights and publisher fees, as well as regulations on eSports betting.

Customer preferences: The eSports market in the Philippines has seen a significant increase in popularity among younger generations, with a growing preference for online gaming and virtual tournaments. This trend is driven by the country's strong gaming culture and the increasing availability of high-speed internet. Additionally, the rise of mobile gaming and the integration of eSports into mainstream media have also contributed to the growth of the industry. This shift towards online gaming reflects the changing lifestyles and preferences of the digital-savvy Filipino population.

Trends in the market: In the Philippines, the eSports market is experiencing a surge in popularity, with more players and fans joining the community. This trend is driven by the country's young population and the increasing availability of high-speed internet. Additionally, the rise of mobile gaming and the growing number of tournaments and events have also contributed to the growth of the market. As a result, there is a significant increase in investments and sponsorships from both local and international companies, indicating the potential for further growth. This trend is likely to continue, with the government also showing support for the industry through initiatives such as the establishment of eSports hubs and training centers. This trajectory presents numerous opportunities for industry stakeholders, including game developers, tournament organizers, and sponsors, to tap into the growing market and reach a wider audience. However, it also poses challenges, such as the need for proper regulation and infrastructure to support the industry's growth. Overall, the current trends in the Philippine eSports market suggest a promising future for the industry and its stakeholders.

Local special circumstances: In the Philippines, the eSports market is rapidly growing due to the country's strong passion for gaming and its tech-savvy population. The country's geographical location also allows for a large pool of potential players, given its proximity to other Southeast Asian countries with a thriving eSports scene. Additionally, the Philippines' unique cultural landscape, with its love for competitive sports and gaming, has created a fertile ground for the growth of eSports. Moreover, the government's support for the industry, through initiatives such as the establishment of eSports hubs and hosting of international tournaments, has further fueled its development.

Underlying macroeconomic factors: The eSports market in the Philippines is greatly impacted by macroeconomic factors, including global economic trends and the country's economic health. As one of the fastest-growing economies in Southeast Asia, the Philippines has a strong consumer base and a rapidly expanding middle class. This provides a favorable environment for the growth of the eSports market. Additionally, the government's support for the development of the digital economy and its investment in infrastructure, such as high-speed internet, have also contributed to the growth of the eSports industry in the country. Furthermore, the increasing popularity of eSports among the younger generation and the rise of mobile gaming in the Philippines have also played a significant role in driving the demand for eSports. Overall, these macroeconomic factors have created a conducive environment for the growth of the eSports market in the Philippines.

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.