Esports

In the United Arab Emirates, revenue in the Esports market is projected to reach US$11.8m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.22%, resulting in a projected market volume of US$17.6m by 2029.
The largest market in this market is Sponsorship & Advertising, with a market volume of US$6.6m in 2024.
Most revenue is generated the United States, with a projected market volume of US$1.1bn in 2024.
In the Esports market withUnited_Arab_Emirates, the number of users is expected to amount to 1.8m users by 2029.
User penetration will be 15.3% in 2024 and is expected to reach 17.8% by 2029.
The average revenue per user (ARPU) in the United Arab Emirates is expected to amount to US$8.07.
The United Arab Emirates is rapidly emerging as a vibrant hub for Esports, fueled by increasing government support and a burgeoning youth interest in 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 United Arab Emirates is experiencing mild growth, driven by factors such as increasing adoption of digital technologies, rising popularity among consumers, and the convenience of online services. Sub-markets such as Sponsorship & Advertising, Merchandise & Ticketing, and Streaming have also contributed to this growth. However, factors like limited media rights and regulations on Esports betting could impact the market's overall growth rate.

Customer preferences: As the popularity of eSports continues to grow in the United Arab Emirates, there has been a noticeable increase in demand for virtual reality gaming experiences. This can be attributed to the country's high-tech and digitally savvy population, as well as a desire for more immersive and interactive forms of entertainment. With the rise of virtual reality technology, it is expected that there will be a significant shift towards eSport events and tournaments being held in virtual environments, providing a unique and engaging experience for players and viewers alike.

Trends in the market: In the United Arab Emirates, the eSports market is experiencing a surge in online gaming tournaments, with a growing number of professional and amateur players participating. This trend is expected to continue as the government is actively investing in eSports infrastructure and hosting international events. This trajectory is significant as it not only boosts the economy but also promotes the country as a global hub for eSports. Industry stakeholders can capitalize on this trend by offering sponsorship opportunities and investing in the development of local talent. Additionally, there is a potential for increased partnerships between eSports organizations and brands, further driving the growth of the market.

Local special circumstances: In the United Arab Emirates, the eSports market is growing rapidly due to the country's strong economy and high levels of technological advancement. The UAE has a large and affluent population, with a strong interest in online gaming and competitive eSports tournaments. The government has also shown support for the industry, with initiatives such as the Dubai Internet City and Dubai Studio City, which provide a favorable environment for eSports companies to thrive. Additionally, the country's strategic location and diverse population make it a hub for international eSports events and competitions.

Underlying macroeconomic factors: The eSports market in the United Arab Emirates is heavily influenced by macroeconomic factors such as the country's strong economic growth, government support for technology and innovation, and increasing investments in digital infrastructure. This has created a favorable environment for the growth of the eSports industry, with a rising number of players, viewers, and investments in tournaments and events. Moreover, the UAE's young and tech-savvy population, coupled with its strategic location as a regional hub for technology and entertainment, has further fueled the growth of the eSports market. Additionally, the country's robust digital infrastructure and high internet penetration rates have enabled the widespread adoption of eSports, making it a lucrative market for game developers and sponsors.

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.