Esports Market Is Projected To Register A Healthy CAGR Of 24.4% By 2027 | Grand View Research, Inc.

Esports Market Is Projected To Register A Healthy CAGR Of 24.4% By 2027 | Grand View Research, Inc.

Grand View Research, Inc. – Market Research And Consulting.
According to report published by Grand View Research, The esports market is expected to grow on account of the increasing popularity of video games, rising awareness regarding Esports, and increasing mobile usage in emerging countries.

According to a report,“Esports Market Size, Share & Trends Analysis Report By Revenue Source (Sponsorship, Advertising, Merchandise & Tickets, Media Rights), By Region, And Segment Forecasts, 2020 – 2027”, published by Grand View Research, Inc., The global esports market size is expected to reach USD 6.82 Billion by 2027, registering a CAGR of 24.4% over the forecast period, according to a new report by Grand View Research, Inc. The market is expected to grow on account of the increasing popularity of video games, rising awareness regarding Esports, and increasing mobile usage in emerging countries.

In alignment with the dynamic entertainment industry, consumers are demanding interactive, and high-quality gaming content. This demand is expected to extend the entire sports industry’s growth, from small developers and big-budget games to influencers who stream their gameplay. The Esports industry is witnessing revenue growth owing to the significant audience growth and increasing investment from commercial partners. The industry has become more structured with associations and league formats evolving new competition structures. Additionally, the growing mergers and acquisition activities in 2018 have reflected strong market growth.

The popular streaming platforms, such as Twitch has propelled the gaming and Esports toward the mainstream. The Esports tournaments have drawn the attention of celebrities and athletes, which can attract a large audience. Moreover, these sports possess a unique capability to capture young and enthusiastic viewers who are difficult to reach via traditional media. Such capability has created sizeable opportunities for brands to invest in advertising and sponsorships, thereby propelling the market growth. Investors’ interest is likely to increase with the introduction of the more franchise-style league, the centralization of an Esports team, and continued rise in audience. Moreover, the companies are trying to monetize the rising level of interest through various sources.

“Would you Like/Try a Sample Report” Click the link below:

Apart from sponsorship, the merchandise and ticket sales are integral revenue streams driving the industry growth. The franchisee is embarking on the new sports model that includes city-based teams hosting local events with thousands of fans’ attendance in the stadium. Such events are significantly generating revenues, thereby contributing to the market growth. The Esports apparel market has experienced significant growth in recent years owing to increased retail presence, growing fanbase and league-level merchandise deals. As the teams can individually sell their merchandise to their fans, Esports teams no longer need to rely on winning competition and prize money as a core revenue source. Recently, in 2019 Team Liquid, a Netherland based multi-regional Esports organization, partnered with Marvel Entertainment to offer superhero-themed merchandise including jerseys and t-shirts. 

U.S. Esports market size

Esports Market Report Highlights

  • The prominent brands are ensuring long-term sponsorship relations with top brands such as ESL, which presumes the strong growth of sponsorship segment over the forecast period
  • Mobile Esports is expected to make significant inroads resulting in more viewership in the forthcoming years

  • Franchise and league game formats are expected to broaden the horizon of the industry over the forecast period, thereby driving the industry growth

  • The industry is looking forward to the introduction of the 5G network, which has faster, more reliable streaming capabilities. This development is expected to open growth avenues for sports broadcasters

  • Asia Pacific is expected to lead the market growth over the forecast period, with China playing a crucial role in the development of the regional Esports ecosystem

Revenue Source Insights

The sponsorship segment dominated the global Esports revenue, with a market share of 39.9% in 2019. Sponsorship offers a sizeable opportunity for various brands to directly reach to the target audience through offline and online media channels. Booths, posters, interactive advertising, video displays, freebies, and many other creative methods facilitate the brand to target millions of fans. Many endemic brands such as Intel Corporation and Nvidia Corporation have already well-established sponsorship deals with Esports teams and leagues. These deals have proven to be a great investment as they are able to increase their market share and brand recognition by selling gaming related products.

Have Any Query? Ask Our Experts for More Details on Report:

Additionally, the industry has seen an up stick from non-endemic brands such as Volkswagen Group, Daimler AG (Mercedes Benz), McDonald’s Corporation, Tinder, and Vivo Communication Technology Co. Ltd. as a key sponsor for the Esports tournaments and teams. There have been nearly 76 deals by non-endemic brands for Q1 2019, which includes prominent brands such as The Coca-Cola Company; AT&T Inc.; Nissan Motor Co., Ltd.; and Nike, Inc.

The media rights segment is one of the substantial revenue-generating streams and is estimated to expand at the highest CAGR of over 25.5% over the forecast period. Media rights include all the revenues paid to event organizers, teams, and leagues in order to secure the rights to broadcast Esports content on a channel. Esports consists of more than thousands of individual leagues, events, and championships for which the media rights deal is expected to generate a substantial amount of revenue in the coming years. Twitch is one of the prominent streaming platforms used by fans to watch major tournaments.

Global Esports market share

Recently, Twitch announced that in a single month of December 2019, 1.18 million viewers spent nearly 880 million hours watching videogames and other sports content. In 2018, Twitch signed a two-year deal worth USD 90 million with the Overwatch League for the exclusive digital broadcasting rights in English, French, and Korean. This was one of the biggest deals in Esports history, accumulating 85 million hours watched. Tech giant Google LLC also entered the Esports media rights business by announcing the multi-year partnership with Activision Blizzard, Inc. to broadcast Esports league on YouTube. These M&A activities show media rights trend is expected to elevate at a larger scale over the next few years.

Esports Market Segmentation

Grand View Research has segmented the global Esports market based on revenue source and region:

Esports Revenue Source Outlook (Revenue, USD Million, 2016 – 2027)

  • Sponsorship

  • Advertising

  • Merchandise & Tickets

  • Publisher Fees

  • Media Rights

Esports Regional Outlook (Revenue, USD Million, 2016 – 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Spain

    • Poland

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil 

    • Mexico

  • Middle East and Africa

List of Key Players of Esports Market

  • Activision Blizzard, Inc.

  • Electronic Arts Inc.

  • Modern Times Group (MTG)

  • Tencent Holding Limited

  • Valve Corporation

Request for Customization :

Explore the BI enabled intuitive market research database, Navigate with Grand View Compass, by Grand View Research, Inc.

About Grand View Research

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

Media Contact
Company Name: Grand View Research, Inc.
Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.
Email: Send Email
Phone: 1-415-349-0058, Toll Free: 1-888-202-9519
Address:201, Spear Street, 1100
City: San Francisco
State: California
Country: United States