Esports

In South Africa, revenue in the Esports market is projected to reach US$26.4m in 2024.
Revenue in this country is expected to show an annual growth rate (CAGR 2024-2029) of 5.74%, resulting in a projected market volume of US$34.9m by 2029.
The largest market within the Esports market in South Africa is Esports Betting, with a market volume of US$17.8m in 2024.
Although most revenue is generated the United States, the Esports market in South Africa is also growing significantly, as it is expected to have a user base amounting to 18.5m users by 2029.
User penetration in South Africa will be 22.2% in 2024 and is expected to hit 28.8% by 2029.
The average revenue per user (ARPU) in this market is expected to amount to US$1.95.
South Africa's burgeoning esports scene is rapidly gaining recognition, driven by increased youth engagement and the rise of local tournaments and streaming platforms.

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 South Africa is experiencing modest growth, influenced by factors such as increased sponsorship and advertising, rising interest in merchandise and ticket sales, and the convenience of streaming and online services. However, the market's growth rate is hindered by challenges such as limited media rights and publisher fees, as well as government regulations on eSports betting.

Customer preferences: The eSports market in South Africa has seen a significant increase in the demand for online gaming and virtual events. With the rise of digital connectivity and the ability to connect with global players, consumers are shifting towards online eSports platforms for their entertainment needs. This trend is influenced by the growing popularity of virtual gaming communities and the desire for convenient and accessible forms of entertainment. Furthermore, the shift towards online eSports is also driven by the need for social interaction and connection, particularly among younger demographics who are more digitally savvy.

Trends in the market: In South Africa, the eSports market is experiencing significant growth, with a focus on expanding the player base and increasing the popularity of competitive gaming. This trend is being fueled by the rise of mobile gaming and the increased accessibility of high-speed internet. Additionally, there is a growing trend of partnerships between traditional sports organizations and eSports teams, further legitimizing the industry. These trends indicate a bright future for the eSports market in South Africa, with potential implications for stakeholders such as game developers, sponsors, and advertisers. As the market continues to grow and evolve, there will be opportunities for new partnerships and innovative approaches to monetization, making it an exciting time for the industry in the country.

Local special circumstances: In South Africa, the eSports market is heavily influenced by the country's unique geographical landscape, with a large portion of the population living in rural areas with limited access to traditional sports. This has led to a significant growth in online gaming and eSports, with platforms catering specifically to the local gaming community. Additionally, South Africa's diverse cultural makeup has also played a role in the market's growth, with various gaming genres and styles gaining popularity among different demographics. Furthermore, regulatory initiatives promoting the development of the digital economy have also contributed to the increasing interest in eSports among both players and investors in South Africa.

Underlying macroeconomic factors: The eSports market in South Africa is largely influenced by macroeconomic factors such as technological advancements, government policies, and overall economic health. With the increasing global trend towards digitalization and online entertainment, the demand for eSports has grown significantly in recent years. Additionally, the country's strong investment in digital infrastructure and supportive regulatory environment has further accelerated the growth of the market. However, challenges such as limited funding and regulatory barriers in certain regions may hinder the market's growth potential. Moreover, the rising popularity of eSports among the younger population and the increasing adoption of gaming as a profession are also 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.