Streaming - Nigeria

Nigeria

Highlights

In Nigeria, revenue in the Streaming market is projected to reach US$180.6k in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 4.70%, leading to a projected market volume of US$227.2k by 2029.
While most revenue in the global Streaming market is generated China, Nigeria's market is also developing.
In Nigeria, the number of users in the Streaming market is anticipated to amount to 11.8m users by 2029.
User penetration in Nigeria will be 4.3% in 2024 and is expected to increase to 4.6% by 2029.
The average revenue per user (ARPU) in Nigeria is expected to amount to US$0.0.
As Nigeria's youth increasingly embrace eSports, streaming platforms are witnessing a surge in engagement, reflecting the nation’s growing digital culture.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Nigeria is facing minimal growth due to various factors such as lack of infrastructure, limited access to technology, and low awareness among consumers. Despite this, the market is gradually gaining traction, driven by the convenience of live streaming services and the growing interest in competitive gaming.

Customer preferences: With the rise of digital entertainment and the growing popularity of eSports in Nigeria, consumers are increasingly turning to streaming platforms to access their favorite games and tournaments. This trend is driven by a younger demographic that values convenience and the ability to watch and interact with their favorite players in real-time. Moreover, the rise of mobile gaming and the increasing availability of affordable internet access in Nigeria has further fueled the demand for streaming services in the eSports market.

Trends in the market: In Nigeria, the eSports market is experiencing a surge in the streaming market, with platforms like Twitch and YouTube gaining popularity. This trend is expected to continue as more Nigerians gain access to high-speed internet and smartphones. The significance of this trend is that it allows for a wider reach and engagement with the audience, which can lead to increased revenue for players, teams, and event organizers. Additionally, it provides an opportunity for local players and events to gain international recognition and attract sponsorship deals. However, there may be challenges in terms of infrastructure and copyright issues that need to be addressed by industry stakeholders to fully capitalize on this trend.

Local special circumstances: In Nigeria, the eSports market is still in its early stages of development, but the streaming market is already showing promising growth due to the country's high internet and smartphone penetration rates. The youth population's growing interest in gaming and the emergence of local professional eSports teams have also contributed to the market's growth. However, challenges such as unstable internet infrastructure and low disposable income may hinder the market's potential. Additionally, the country's strict regulations on gambling and betting may impact the growth of eSports tournaments and betting platforms.

Underlying macroeconomic factors: The growth of the Streaming Market within the eSports Market in Nigeria is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. As Nigeria continues to experience economic growth and modernization, the demand for digital entertainment, including eSports streaming, is expected to increase. Furthermore, the country's significant youth population and rising disposable income are also contributing to the growth of the market. However, challenges such as limited internet access and infrastructure in some regions may hinder the market's expansion, highlighting the importance of government policies and investments in improving digital infrastructure to support the market's growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Streaming market, which comprises revenues from live broadcasting gaming content. 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.