eSports refers to organized multiplayer video game competitions, especially between professional players. eSports games are played primarily in PCs or gaming consoles over the internet or local area network between two or more participants. eSports games encompass various genres of games like real-time strategy, multiplayer online battle arena, first-person shooter, fighting, card games etc. Growing popularity of online competitive multiplayer games and increasing prize money in eSports tournaments are major factors driving growth of global eSports market.
The global eSports Market is estimated to be valued at US$ 2123.48 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing popularity of online competitive multiplayer games: Popularity of online competitive multiplayer games especially among younger generation is growing significantly due to increasing internet and smartphone penetration across the globe. Growing digitalization and increasing penetration of mobile gaming that allows online competitive live gaming on-the-go are attracting more gamers especially from developing countries toward online multiplayer games. Rising online gamers are translating into increased viewership and popularity of eSports. Growing craze for multiplayer online battle arena and first-person shooter games among online gamers is expected to drive significant growth in the global eSports market over the forecast period.
Porter's Analysis
Threat of new entrants: The eSports market requires huge capital investments in infrastructure and teams, thereby increasing barriers to entry. However, ease of entry through online platforms have allowed new venture-funded teams and tournaments to enter the market.
Bargaining power of buyers: Individual gamers have low bargaining power due to the availability of many international tournaments and leagues. However, platform buyers like streaming sites hold significant power due to the ability to reach large audiences.
Bargaining power of suppliers: Professional players and teams have increasing bargaining power due to rising prestige and salaries in the industry. Platform builders also hold power as content suppliers.
Threat of new substitutes: Online casual gaming is a potential substitute, but the competitive and community nature of eSports makes it quite distinct.
Competitive rivalry: Intense as numerous international tournaments and regional leagues compete for viewership, sponsors and partnerships.
SWOT Analysis
Strengths: Large and engaged younger audience, innovative live formats, integration with online platforms.
Weaknesses: Over-reliance on few popular games, restricted monetization models, uncertain regulatory landscape.
Opportunities: Growth in Asia, celebrity endorsements, expansion of collegiate leagues and amateur circuit.
Threats: Sponsor fatigue, piracy and copyright issues, slowing economic conditions.
Key Takeaways
Global Esports Market Size is expected to witness high growth over the forecast period of 2024-2031 supported by rising internet and smartphone penetration worldwide. The market size for 2024 is estimated at US$ 2123.48 Mn and is projected to grow at a CAGR of 4.7% through 2031.
Asia Pacific dominates the global eSports market with China, South Korea and Japan being the major countries contributing to growth. Low latency and high-speed internet infrastructure along with government initiatives to promote eSports are driving the market in the region. Furthermore, the region is seeing a boom in local tournaments as well as participation from regional players.
North America follows Asia Pacific in terms of market share and is expected to see steady growth backed by rising sponsorships and college level competitions in the US and Canada. Europe also presents considerable opportunities led by events such as the ePremier League in UK and growing interest in countries such as Germany and France.
Key players operating in the eSports market are Saipem, Subsea 7 S.A., McDermott International, and TechnipFMC plc. These companies are focusing on expansions, partnerships and mergers & acquisitions to strengthen their presence in the lucrative and evolving eSports industry.
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