eSports Market Is Expected To Exhibit a CAGR of 20.3% During The Forecast Period (2020-2027) - Coherent Market Insights

The Global eSports Market, By (Sponsorship, Advertising, Merchandise & Tickets, Publisher Fees, Media Rights, and Others) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 3.73 Billion by 2027, exhibiting a CAGR of 20.3% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.

Overview

Esports is a form of competition using video games. Generally, esports takes in the form of multiplayer video game competitions, especially among professional players, or teams. The most common video games associated esports are Counter-Strike, League Legends, Dota, Super Smash Bros, etc. Esports has become significantly popular over the years with the advent of novel gaming consoles, advanced features in PC, and supportive equipment such as headsets.

The global esports market is expected grow at a CAGR of 20.3% expected reach to US$ 3.73 billion by 2027.

Market Driver

Rising awareness related to esports is expected to drive growth of the global esports market during the forecast period

Over the years, the popularity of esports has increased massively in both developed and emerging economies. Previously, esports was considered as a casual hobby among teenagers. However, it has grown to become a professional career option for many. Many universities are offering lucrative scholarships and degree programs for students, who aspire to make their careers in gaming. As a result of this, the popularity of esports is increasing rapidly. This, in turn, has resulted in demand for more and more interactive games with advanced features such as AR and VR. Thus, these factors are expected to propel the global esports market growth over the forecast period.

Market Opportunity

Advent of virtual reality has provided a diverse range of opportunities for market players. Many market players are focused on providing a virtual reality (VR) to players as well as spectators, in order to deliver an insightful experience of the game. This experience allows spectators to immerse themselves into a higher level of immersion and enable them to involve emotionally in esports. The introduction of a 3D artificial environment to computer games enhances the user experience. Key companies in the market can capitalize on these opportunities by providing innovative solutions and gain a competitive edge in the market.

Market Restraint

A major threat from gambling or betting on esports is expected to hinder the global esports market growth over the forecast period

Gaming and betting remain a major issue in esports, making the market susceptible to illicit activities. Furthermore, rising popularity of online betting and gambling has led to increased criminal activities and vulnerability to money laundering are expected to hinder the global esports market growth over the forecast period.

Key Takeaways

1. According to Coherent Market Insights’ analysis, China held the dominant position in the global esports market in 2020, with a total revenue of US$ 385.2 million.
2. North America held the second-largest revenue in the global esports market in 2020, generating a revenue of US$ 252.84 million.

Market Trends

Introduction of AR in esports is an emerging trend

Augmented reality or AR is now being increasingly used in esports, which provides a more enhanced experience to end users. Although it is still in the nascent stage, it has started gaining traction similar to virtual reality, providing a 3D environment to PC gamers. AR can be used to blend the digital characters or objects with the real-world in a mixed reality environment. The latest studio technology immediately immerses AR figures in real-time into any broadcast.

Competitive Section

Key companies operating in the global esports market are Activision Blizzard, Inc., NVIDIA Corporation, Valve Corporation, Nintendo of America Inc., Riot Games, Inc., Epic Games, Inc., Tencent Holding Limited, Gameloft SE, Turner Broadcasting System, CJ Corporation and Electronic Arts Inc.

Key Developments

1. Key players are involved in partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in August 2020, Riot Games, Inc. partnered with Cisco Corporation to provide reliable infrastructure and networking capabilities across the globe.
2. Major market players are involved in partnership and collaborations, in order to enhance the market For instance, in May 2020, Gameloft SE partnered with ZEE5 to launch online gaming.

Segmentation

Market Taxonomy:

1. By Application
   • Advertising
   • Merchandise & Tickets
   • Publisher Fees
   • Media Rights
   • Others
2. By Region
   • North America
   • Europe
   • Latin America
   • Asia Pacific
   • Middle East and Africa