Esports

In the United Kingdom, revenue in the Esports market is projected to reach US$228.7m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.88%, leading to a projected market volume of US$304.4m by 2029.
The largest market within the Esports market is Esports Betting, which is anticipated to have a market volume of US$172.3m in 2024.
Although most revenue is generated the United States, in the United Kingdom is also witnessing growth, with the number of users in the Esports market expected to reach 23.8m users by 2029.
User penetration in the United Kingdom will be 28.2% in 2024 and is projected to increase to 34.5% by 2029.
Additionally, the average revenue per user (ARPU) in the Esports market is expected to amount to US$11.94.
The United Kingdom's esports market is witnessing a surge in grassroots tournaments, fostering local talent and enhancing community engagement within the gaming ecosystem.

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 United Kingdom is facing subdued growth, influenced by factors such as slow adoption of digital technologies, limited awareness among consumers, and lack of convenience in online services. This is evident across all sub-markets, where sponsorship, ticketing, and streaming are struggling to gain traction. The market's growth rate is impacted by these challenges, making it difficult for the industry to reach its full potential in the UK.

Customer preferences: The eSports market in the United Kingdom has witnessed a shift in consumer preferences towards mobile gaming and streaming platforms. With the rise of mobile devices and faster internet speeds, there has been a growing demand for on-the-go gaming experiences. Additionally, the younger demographic has shown a preference for streaming their gameplay on platforms like Twitch and YouTube, highlighting a shift towards more interactive and social gaming experiences. This trend is driven by the evolving lifestyle of consumers, who are seeking more immersive and connected forms of entertainment.

Trends in the market: In the United Kingdom, the eSports market is experiencing a surge in mobile gaming, with a significant increase in the number of players using their smartphones to compete in tournaments and leagues. Additionally, there is a growing trend of incorporating virtual and augmented reality technology in eSports events, providing a more immersive experience for both players and viewers. This trend is expected to continue, as advancements in technology make it more accessible and affordable. As a result, industry stakeholders should consider investing in these technologies to stay competitive and attract a wider audience. Furthermore, this trend has potential implications for the traditional sports industry, as eSports continues to gain mainstream recognition and compete for viewership and sponsorship deals. Overall, the trajectory of these trends signals a promising future for the eSports market in the United Kingdom.

Local special circumstances: In the United Kingdom, the eSports market is thriving due to the country's strong history and culture in gaming. The UK has a large population of avid gamers, as well as a developed infrastructure for eSports tournaments and events. Additionally, the country's liberal approach to online gambling has led to the rise of eSports betting, further driving the growth of the market. The UK's geographical location also allows for easy access to other European markets, making it a key hub for international eSports competitions. However, strict regulations on advertising and sponsorship in the gambling industry may pose challenges for the growth of eSports in the UK.

Underlying macroeconomic factors: The growth of the eSports market in the United Kingdom is heavily affected by macroeconomic factors such as consumer spending, economic stability, and government support. The country's strong economy and high consumer spending power have contributed to the growth of the eSports market, as consumers have more disposable income to spend on gaming and related products. Additionally, the UK government has shown support for the eSports industry through initiatives such as tax breaks for game developers and investment in gaming infrastructure. However, global economic uncertainties and potential changes in fiscal policies could impact the market's growth in the future.

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.