Esports

In South America, revenue in the Esports market is projected to reach US$175.2m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 6.78%, resulting in a projected market volume of US$243.3m by 2029.
The largest market withSouth_America is Esports Betting, with a market volume of US$134.2m in 2024.
Most revenue is generated in South America, with a projected market volume of US$1.1bn in 2024.
In the Esports market in South America, the number of users is expected to amount to 56.6m users by 2029.
User penetration in South America will be 12.1% in 2024 and is expected to hit 14.9% by 2029.
The average revenue per user (ARPU) in South America is expected to amount to US$3.92.
In South America, the esports sector is rapidly gaining traction, with increasing investment in local talent and infrastructure to foster competitive gaming.

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 America is currently experiencing subdued growth, influenced by factors such as limited sponsorships, low media rights deals, and underdeveloped infrastructure. However, the rising popularity of online streaming and increasing investment in merchandise and ticketing could drive future growth in the region. Additionally, the potential legalization of eSports betting in some countries could also contribute to the market's expansion. Overall, the South American eSports market is poised for gradual growth in the coming years.

Customer preferences: As the eSports market continues to grow in South America, there has been a noticeable increase in demand for virtual reality (VR) technology. This trend is driven by the desire for a more immersive and realistic gaming experience. Additionally, the rise of streaming platforms and online tournaments has led to a surge in virtual ticket sales, highlighting a shift towards digital entertainment and competition in the region. Furthermore, the adoption of VR in eSports presents opportunities for brands to engage with consumers through innovative and interactive marketing strategies.

Trends in the market: In South America, the eSports market is witnessing a surge in mobile gaming, with more players using smartphones and tablets for competitive gaming. This trend is fueled by the increasing availability of affordable devices and widespread internet access. Additionally, there is a growing interest in virtual reality and augmented reality technology, which is being incorporated into eSports events and experiences. This trend is significant as it allows for a more immersive and engaging gaming experience, attracting a larger audience and potential sponsorships. For industry stakeholders, this trend presents opportunities for partnerships with mobile device manufacturers and technology companies to enhance the eSports experience. It also highlights the need for continued investments in infrastructure and technology to support the growth of the eSports market in South America.

Local special circumstances: In Brazil, the eSports market is rapidly growing due to the country's large population of gaming enthusiasts and the increasing availability of high-speed internet. The cultural preference for competitive gaming and the government's support for eSports as a legitimate sport have also contributed to its popularity. Additionally, Brazil's unique geographical landscape, with its vast and diverse regions, has led to the development of localized gaming communities and competitions. This has created a dynamic and vibrant market for eSports, with a mix of international and local players and events.

Underlying macroeconomic factors: The eSports market in South America is heavily influenced by macroeconomic factors such as economic stability, government support, and investment in technology infrastructure. Countries with strong economic growth and government policies that support the development of eSports are experiencing rapid market expansion. On the other hand, countries with economic challenges and limited government funding for technology may face slower market growth. Additionally, the increasing popularity of eSports among the younger population and the rise of digital consumption worldwide are driving the demand for eSports in South America.

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.