The global eSports market is anticipated to grow at an impressive CAGR of 18.1%, rising from its current worth of US$ 1.8 billion to a revenue value of US$ 9.5 billion by 2033’s end.
In recent years, the great prevalence of technology and digital gadgets has led to the digitization of a number of elements of human existence. This trend is now expected to have an impact on the sports business as well. With the development of technologies like machine learning, virtual reality, and augmented reality, video games have transformed into sophisticated immersive experiences that, to some extent, replicate real-world sports.
F1 eSports is a competition that has seen a sharp increase in popularity in recent years and is anticipated to grow significantly in popularity and revenue over the next ten years. As technology develops and the globe becomes more digitised than ever, eSports are establishing themselves as the future of the sports sector.
Other factors that are anticipated to potentially benefit overall market evolution over the forecast period include increasing smart device use, rising disposable income, the popularity of new eSports platforms, supportive initiatives and alluring incentives associated with eSports participation and viewing, and growing recognition of eSports personalities.
Increasing Popularity of Video Games and Advertisements of eSports on Online Channels
The popularity of video games has expanded as a result of expanding digitalization and Internet penetration, which can be attributed to shifting advertising trends. The demand for eSports is anticipated to increase over the next several years as a result of the expanding number of eSports broadcasting platforms that allow income generating through pay-per-view business models.
In the future, it is also anticipated that the regular release of new video games across a variety of genres would open up lucrative commercial opportunities for eSports firms.
United States Offers Highly Attractive Growth Scope for eSports Companies
Due to the country’s high rate of technology advancement and the existence of important eSports companies, eSports popularity in the United States is growing quickly. Strong consumer spending potential, new eSports competitions, and rising research and development expenditures for cutting-edge video games.
Growing eSports sector investments from game developers, broadcast networks, and athletes are also anticipated to boost market growth in the nation throughout the course of the projection period. Over the next few years, ice hockey and fantasy basketball are both expected to gain more traction in this nation.
The creation of eSports clubs in high schools and universities is the result of efforts to create a robust eSports ecosystem for gamers, and this is expected to accelerate market expansion in the nation over the course of the forecast period. However, it is anticipated that the legalisation of eSports betting in several U.S. states will create new business opportunities for both established and up-and-coming eSports firms.
Media Rights Account for Major Share in Global eSports Market
The eSports market is divided into sponsorships, advertising, media rights, game publisher fees, merchandising, and tickets based on revenue streams.
The media rights sector is anticipated to significantly contribute to the media rights segment’s ability to account for a dominant market share in the marketplace both now and in the next years as a result of growing investments from media businesses in the eSports industry. Other possibilities include rising viewership and global eSports awareness, which contribute to the importance of media rights as a source of income for eSports organisations.
Over the next ten years, it is anticipated that collaborations and partnerships between media broadcast corporations and eSports event organisers would favour growth in this market.
Key Companies Profiled
- Activision Blizzard Inc.
- Tencent Holdings Limited
- Twitch Interactive Inc.
- X1 Esports
- Sony Group Corporation
- Riot Games Inc.
- DLive Entertainment Pte. Ltd.
- Entertainment Ltd.