Esports Market: Current Analysis and Forecast (2021-2027)

Report Description

Esports Market is expected to grow at a CAGR of around 25% over the forecast period (2021-2027). The Esports medical devices market is primarily driven by factors such as growing adoption of advanced gaming technologies, changing entertainment preferences among consumers, rising income levels, and growing demand for mobile gaming.

The use of smartphones across developing economies is on a continuous increase due to numerous factors such as rise in per capita income, cost affordability, availability of multiple low price options with significant features, and others. This increases the demand for online smartphone gaming and video gaming. Video games have been around for decades, providing entertainment for children. The video game sector is immensely large. In fact, it is larger than movie & music industry and it is also growing rapidly. As the demand for online video game event is increases it will create lucrative opportunity for the E-sport market globally.

The increasing smartphone penetration and better internet connectivity have led to rise in the number of gamers at a rapid pace. It imitates the experience of viewing a professional sports event, where audiences watch video gamers compete against each other. Esports events comprise competitive leagues and tournaments. Further, with increasing player wages and expanding Esports market, the introduction of new sponsors is critical for the future commercial success of Esports.

Some of the major players operating in the market include Activision Blizzard, Inc., CJ Corporation, Electronic Arts, FACEIT, Gameloft SE, Gfinity, Kabam, Modern Times Group, Nintendo, NVIDIA Corporation, etc. Several M&A’s along with partnerships have been undertaken by these players to boost their presence in different regions.

Insights Presented in the Report

“Amongst Application, Platform segment dominated the market in 2020”

Based on Application, Esports Market is classified into Platform and Services. Platform holds the highest share in the Esports market. The pop-culturization of the Esports industry has helped power the explosions in Esports investment and revenue. Esports has hit this stratosphere in large part because of the social component of live streaming and gaming. Video gaming-specific streaming platforms like Twitch and YouTube Gaming give fans a direct connection to the players and teams, while more mainstream socials have allowed those connections to flourish.

“Amongst Streaming Type, On Demand segment dominated the market in 2020.”

Based on Streaming Type, the Esports market is segmented into On Demand and Live. The large share of the streaming type segment can be attributed to the growing youth population and changing lifestyles have both contributed to an increase in demand for video games and online video games over the years. Growing audience reach and engagement activities, significant investments, rising live streaming of games, and expanding infrastructure for league tournaments are key factors driving the market growth.

“Amongst Device Type, Smartphone holds significant market share in 2020.”

Based on Device Type, the Esports market is segmented into Smartphone, Smart TV, Desktop/laptop/tablets and Gaming console. Smartphone holds the highest share in the Esports market. The constant technological advancements across the world have compelled people to depend on smartphones, several high-tech gadgets, and the internet. The growth of the segment is attributed to numerous benefits provided by this device type such as high quality of gamming, which results in much better gaming experience, high security, and others. However, the smartphone segment is expected to witness highest growth in the upcoming years.

“Amongst Revenue Stream, Sponsorship witnesses significant CAGR during the Forecast Period.”

Based on Revenue Stream, the Esports market is segmented into Media rights, Game Publisher fee, sponsorship, digital advertisement, tickets and merchandise. Sponsorship holds the highest share in the Esports market. On ground sponsoring is cheaper than an online advertisement, and tends to be influential, especially, for companies offering products and services directly related to gaming.

“North America represents as the largest market.”

For a better understanding of the market adoption of Esports, the market is analyzed for the countries such as North America (US, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia- Pacific), & Rest of World. North America dominated the market in 2020. The high and growing adoption of advanced gaming technologies, changing entertainment preferences among consumers, rising income levels, and growing demand for mobile gaming all contribute to the North American region’s big proportion. The United States is also home to the great majority of worldwide players, making it a hotbed of innovation in the Esports business.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Esports Market were the three major steps undertaken to create and analyze the adoption of Esports across various regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Esports through company internal sources such as annual report & financial statements, investor presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Esports, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are by application, Streaming Type, Device Type & Revenue Stream. Further regional & country-level analyses were conducted to evaluate the overall adoption of the Esports Market in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as rising elderly population, rising standard of living of individuals, growing disposable incomes, demand for gaming devices, etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$)
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Esports Market in terms of products & services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Esports Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application, streaming type, device type and revenue stream for the major country/region globally.

The main objective of the Esports Market Study

The current & future market trends of Esports were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Esports in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include of application, streaming type, device type & revenue stream
• Analyze the current and forecast market size of the Esports for the major regions & countries
• Major regions studied in the report include North America (United States, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Rest of Europe), Asia Pacific (China, Japan, India, Australia, Rest of Asia- Pacific), and Rest of World
• Company profiles of the Esports Market players and the growth strategies adopted by them to sustain in the fast-growing market
• Deep dive regional & country level analysis of the industry