Esports

Revenue in the Esports market in the United States is projected to reach US$1.1bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.31%, resulting in a projected market volume of US$1.6bn by 2029.
The largest market within this market is Esports market_Betting, with a market volume of US$721.2m in 2024.
With a projected market volume of US$1.1bn in 2024, the majority of revenue is generated the United States.
In the Esports market the [globalrevenue_currentlayer_yeartoday_maxcountrynameprep], the number of users is expected to amount to 72.5m users by 2029.
User penetration will be 15.4% in 2024 and is expected to reach 20.7% by 2029.
The average revenue per user (ARPU) the United States is expected to amount to US$20.32.
The United States is witnessing a surge in professional Esports leagues, reflecting a growing cultural acceptance and investment in competitive gaming as mainstream entertainment.

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.
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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 States is experiencing steady growth, driven by factors such as increasing popularity of digital gaming, rising interest in competitive gaming among consumers, and the convenience of online platforms. The overall market growth rate is average, influenced by a combination of factors such as sponsorship and advertising, merchandise and ticketing sales, streaming revenues, media rights, publisher fees, and eSports betting.

Customer preferences: Consumers in the United States are increasingly drawn to eSports as a form of entertainment and competition. With the rise of online gaming platforms and the accessibility of high-speed internet, there has been a significant growth in the number of people participating in eSports tournaments. Additionally, the rise of social media has made it easier for gamers to connect and build communities, further driving the popularity of eSports. This trend is expected to continue as more individuals, especially younger demographics, embrace video gaming as a form of entertainment and social interaction.

Trends in the market: In the United States, the eSports market is experiencing a surge in popularity, with more players, teams, and tournaments emerging. This trend is driven by the increasing availability of high-speed internet, which allows for smooth gameplay and streaming. Additionally, the rise of mobile gaming and social media has made eSports more accessible to a wider audience. This trajectory is significant as it highlights the potential for continued growth and mainstream acceptance of eSports. For industry stakeholders, this means opportunities for partnerships, sponsorships, and revenue generation. However, it also brings challenges such as maintaining fair competition and ensuring the sustainability of the industry. As eSports continues to evolve, it will be crucial for stakeholders to adapt and innovate in order to capitalize on this trend and stay competitive in the market.

Local special circumstances: In the United States, the eSports market has experienced significant growth due to a combination of factors. One key factor is the country's strong digital infrastructure, which has enabled the widespread adoption of online gaming and streaming platforms. Additionally, the cultural embrace of technology and competitive gaming has fostered a thriving eSports community. Furthermore, the regulatory environment in the US, with minimal government intervention in the industry, has allowed for a relatively open and competitive market. This has attracted investment and led to the development of a robust and diverse eSports ecosystem.

Underlying macroeconomic factors: The eSports market in the United States is heavily impacted by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. With a strong economy and high levels of digital adoption, the US provides a favorable environment for the growth of eSports. Additionally, the increasing popularity of video games and the rise of online streaming platforms have contributed to the growth of the market. The country's large population, high disposable income, and strong consumer spending also make it a key market for eSports. Furthermore, government initiatives to support and promote the industry, such as tax incentives and funding for eSports events, have further boosted its growth in the country. Overall, the economic stability and favorable regulatory environment in the US have positioned it as a leading market for eSports.

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.