Esports market 2023-2027: A descriptive analysis of five forces model, market dynamics, and segmentation

NEW YORK, Feb. 10, 2023 /PRNewswire/ — According to Technavio, the global esports market size is estimated to grow by USD 3515.1 million from 2022 to 2027. The market is estimated to grow at a CAGR of 21.81% during the forecast period. The report includes historic market data from 2017 to 2021. In 2017, the esports market was valued at USD 927.95 million. APAC will account for 43% of the market’s growth during the forecast period.

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Esports market – Five Forces
The esports market is fragmented, and the five forces analysis covers–

• Bargaining Power of Buyers

• The threat of New Entrants

• Threat of Rivalry

• Bargaining Power of Suppliers

• Threat of Substitutes

• Interpretation of porter’s five models helps to strategize the business, for entire details – buy the report!

Esports market – Customer landscape 

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Esports market – Segmentation assessment

Segment overview
Technavio has segmented the market based on revenue stream (sponsorships, media rights, advertising, publisher fees, and merchandise and ticket sales), genre (MOBA, FPS, RTS, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa).

• The sponsorships segment will grow at the highest rate during the forecast period. The growing participation of non-endemic and endemic sponsor brands in e-sports is driving the growth of the sponsorship segment.

• With half of the global e-sports audience being males aged under 35 years, many companies are focusing their efforts on targeting them through e-sports sponsorships. This allows them to reach a larger audience who will be interested in their products or services.

• Dreamhack, Intel Extreme Masters, League of Legends World Championship, League of Legends Pro League, and ESL Pro League are some of the popular e-sports tournaments in terms of sponsorships.

• Energy drink companies like Red Bull and Monster Energy are top endemic sponsor brands, while non-endemic brands like Coca-Cola, Mercedes Benz, Adidas, Mcdonald’s, and Shanghai Pudong Development Bank are increasingly participating in e-sports sponsorships. This trend is expected to drive the growth of the sponsorships segment in the global e-sports market during the forecast period.

Story continues

Geography overview
By geography, the global esports market is segmented into APAC, Europe, North America, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global esports market.

• APAC will account for 43% of the market’s growth during the forecast period. APAC is a promising market for the e-sports industry, attracting investment from western countries due to the ease of entry compared to other markets. The region is expected to grow steadily during the forecast period, with China, Japan, and South Korea being major contributors to its growth. The presence of a large number of e-sports spectators, sponsors, and brands in the region makes APAC a highly attractive market for the gaming industry.

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Esports market – Market dynamics

Key factor driving market growth

• Branding through e-sports is a driving factor for the global e-sports market growth.

• Companies from different sectors offer sponsorship for e-sports events to promote their products or brands. This provides new revenue opportunities for e-sports events and drives growth in the market.

• Major companies like HTC Corp, Twitch, Intel, Adidas, Vodafone, Coca-Cola, and Mercedes-Benz are sponsoring e-sports events. Recent examples of corporate sponsorships include the multi-year partnership between Over Active Media and Red Bull Gaming Studio.

• Furthermore, factors like the rising number of esports events and new platform launches by regional and international players contribute to the growth of the global e-sports market during the forecast period.

Leading trends influencing the market 

• An increase in e-sports betting is a key trend driving the growth of the global e-sports market.

• E-sports betting is projected to grow significantly, especially in the US due to lenient betting laws and the ease of online transactions. The growth in viewership of e-sports has attracted betting companies to expand their business in e-sports events.

• The total e-sports betting revenue generated by the market is expected to surpass the revenue generated by ticket sales and merchandise of e-sports events, driving the growth of e-sports betting during the forecast period.

Major challenges hindering the market growth

• The growing cost of game development is a major challenge affecting the growth of the global e-sports market. The increasing consumer demand for quality enhancements and innovations in in-game content has raised the cost of game development.

• In order to develop complex gaming content that includes multiple characters, items, levels, and visual effects, gaming companies need to hire highly skilled professionals. This results in higher production costs.

• Game developers also hire Hollywood actors for voice acting, which provides a superior gaming experience but also increases the cost. The high cost of game development and franchise is a challenge for the global e-sports market.

Driver, Trend & Challenges are the factor of market dynamics which states about consequences & sustainability of the businesses, find some insights from a sample report!

What are the key data covered in this esports market report?

• CAGR of the market during the forecast period

• Detailed information on factors that will drive the growth of the esports market between 2023 and 2027

• Precise estimation of the size of the esports market and its contribution to the parent market

• Accurate predictions about upcoming trends and changes in consumer behavior

• Growth of the esports market across APAC, Europe, North America, South America, and Middle East and Africa

• A thorough analysis of the market’s competitive landscape and detailed information about vendors

• Comprehensive analysis of factors that will challenge the growth of esports market vendors

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Table of Contents

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Revenue Stream

7 Market Segmentation by Genre

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

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