Esport Trends and Forecast
The future of the global esport market looks promising with opportunities in the real-time strategy game, first person shooter game, fighting game, multiplayer online battle arena game, and mass multiplayer online role-playing game markets. The global esport market is expected to reach an estimated $7.2 billion by 2031 with a CAGR of 18.4% from 2025 to 2031. The major drivers for this market are growing interest in video games, rising number of viewers on internet platforms, and increasing advertising via gaming platforms.
• Lucintel forecasts that, within the streaming type category, live will remain the larger segment over the forecast period due to increasing emphasis on fan interaction.
• Within the gaming genre category, first person shooter games will remain the largest segment.
• In terms of regions, North America is expected to witness highest growth over the forecast period due to existence of large number of online gamers in the region.
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Emerging Trends in the Esport Market
The rise of technology has played a key role in the growth of the esport market. These trends demonstrate increased liberalization, improved technology use, and changes in the typical gamer profile.
• Investments in Esports Outfits and Competitions: We have witnessed a gradual injection of funds into esport teams and leagues by conventional sports franchises and corporate sponsors. This not only improves the credibility of esport but also makes the institutions around it more dependable. They can now allocate resources to players and their marketing without the usual threat of going bankrupt. Such funding also helps set up professional leagues, as structured formats of competition become available.
• Mobile Esports on the Rise: The growth of the video game industry has led to the development of mobile esport. Games like PUBG Mobile and Free Fire have become competitive phenomena, especially in Asia. It also opens up esport avenues to many more players who do not have the luxury of personal computers with high specifications. Following this trend, mobile esport are now attracting new audiences, supporting growth in the competitive gaming environment.
• Role of AR & VR in Esports: The combination of the players’ environment with AR technology and virtual reality systems in esport allows both players and fans to participate in games on a much more creative level. Such technologies enhance the quality of play and allow the audience to enjoy new forms of viewing esport events. Augmented and virtual reality are likely to change the way video games are played and watched, with more attention and interactivity being brought to them.
• The Will to Change and Adapt: The esport industry is becoming more mindful of the need for diversity and inclusion, which is critical for making players from different backgrounds feel at home. Efforts to enhance player representation, teams, and the industry towards gender diversity are on the rise. This trend is important in growing the number of players in esport and making it attractive to as many people as possible, which is essential for building a community.
• Emergence of New Faces – Content Creators: The emergence of content creators and streamers has already started impacting the esport scene. Several players are trying to create personal brands via streaming channels and earn impressive income through subscriptions and sponsorships. This is changing the way esport tournaments are marketed, designed, and watched, where the trend in audiences has shifted from being simply team or player-oriented to personality-driven.
These trends, such as investment in professional teams, rising mobile esport, the incorporation of AR and VR technologies, a focus on diversity, and the increasing trend of content creation in esport, are making changes in the esport business. These trends reflect an industry that is responsive to consumer needs and technology developments, ensuring its survival in the world of entertainment.
Recent Developments in the Esport Market
Recent developments in the esport market portray transformation and growth as a common form of entertainment. The five critical developments that have influenced the market are described below.
• Breakthrough Sponsorship Agreements: Competitive games and players have become the target of significant sponsorship opportunities from various sectors, and the esport market has witnessed massive sponsorship agreements. Such partnerships ensure financial capacity, improve outreach, and build brand loyalty among the gaming community. These partnerships between esport companies and top brands are critical for further development and the raising of esport’ standing as a serious business venture.
• Rise of Women’s Esports Leagues: The establishment of women’s esport leagues is on the rise, encouraging the competitive environment of electronic sports to be more gender-inclusive. These leagues allow female players to prove their abilities and compete at a high level. This is a positive development for the representation of women in esport, as more women will be gaining interest in the gaming industry.
• Expansion of Esports Programs by Schools and Colleges: More colleges and universities are establishing distinct gaming programs, complete with free esport tuition and gaming degrees. This policy is essential for professionalizing the esport industry, as it enables teenagers and students to prepare for jobs in esport management, game development, and marketing. The creation of skilled personnel by these academic institutions is helping the esport industry grow and become more sustainable.
• Increased Usage and Embrace of Blockchain Technology: In places like Net and Tournaments, the use of blockchain technology is slowly making its way into the esport industry. This environment introduces and enhances in-game transactions and the secure trade of game assets, which creates new possibilities. It further provides options for players and their fans to capitalize on, encouraging a hands-free economy around esport.
• Boost in the Number of International Esports Events: There has been a significant rise in the hosting of international esport events, with players and viewers from different parts of the globe. The escalation in events, such as The International tournaments and League of Legends World Championships, has continued to attract the best competitive gamers, facilitating the globalization of competitive gaming. These tournaments not only promote the esport industry but also enrich interactions between various gaming cultures.
Important business activities such as sponsorship agreements, the establishment of women’s esport leagues, growing educational programs, the introduction of blockchain technology, and the expansion of global competitions are influencing the esport market in various ways. These efforts not only improve the credibility and attractiveness of the market but also facilitate its growth toward becoming a major center for entertainment.
Strategic Growth Opportunities in the Esport Market
The esport market has profound strategic growth opportunities across various applications. Consider five prominent growth opportunities that have been identified in the sector.
• Expansion of Streaming Platforms: Esports content is focusing an increasing amount of attention on dedicated streaming services, especially in targeted markets, opening up significant opportunities. With the growth in viewership on such platforms, targeting esport content, more advertisers and sponsors can be drawn in. This development provides monetization options, such as subscriptions and ad revenues, which are beneficial to content developers and platform owners, while also improving the overall enjoyment for fans.
• Formation of Regional Esports Leagues: Promoting local core esport leagues can cultivate regional workforces and improve the outreach of the association. These leagues can aid in the search for developing talent by focusing on lower-level contests and help create a sustainable talent development environment. They enhance local gaming communities and provide brands with the opportunity to market themselves to regional populations, thus improving overall participation and interest in esport.
• Corporate Involvement: Many companies, particularly those targeting young audiences, are increasingly involved in esport sponsorships and collaborations. This benefits organizations by increasing brand visibility and fostering brand loyalty among a dedicated user base. Consumers may be influenced by brands that implement non-traditional marketing strategies, such as using gaming events and esport influencers, which in turn benefits the companies by increasing recognition and engagement in esport events.
• Expansion of Online Events: The emergence of online events has enabled esport organizations to hold various tournaments and competitions that were previously thought impossible. This trend allows for increased and global player participation, encourages inclusiveness, and lowers entry barriers. It also enables larger audience participation and generates revenue from ticketing, sales, and sponsorships.
• Emphasis on Player Wellness and Support Services: Focusing on player wellness is becoming not only a business ideal but also a necessity for many esport organizations. Offering various forms of support, particularly mental health support, coaching, and training centers, can increase player performance and retention. This player-oriented approach improves the health of competition and reduces the turnover of the esport workforce, creating optimal conditions for the industry to grow.
Evolving opportunities in the esport market, particularly the expansion of streaming platforms, corporate sponsorships, regional league establishment, virtual events growth, and the increasing emphasis on player wellness, will be key determinants of the industry’s growth going forward. These opportunities present encouraging prospects for growth through creativity, participation, and resilience, ensuring that esport does not become a stagnant industry.
Esport Market Driver and Challenges
Various factors, such as political, technological, economic, and regulatory issues, have a bearing on the esport market. Below is an analysis of the major drivers and challenges in the market.
The factors responsible for driving the esport market include:
• The Great Leap of Esports Into Video Gaming Technology: Improvements in technologies such as graphics, internet speed, and streaming features are enhancing the gaming experience. These developments foster better broadcasts and better games, attracting more gamers and viewers. With the advancement of technology, new ideas in esport are making it more valuable in the entertainment sector.
• Esports Moving Into the Reputable World of Sports: This trend is reversing the traditional dynamics, where esport was once treated as illegitimate, and is now entering the traditional sport sponsorship arena. The involvement of traditional sports franchises and their capital is helping esport gain more trust and growth. Additionally, this phenomenon is encouraging a more unified sport culture among fans of traditional sports and competitive gaming.
• The Advancing Professionalism of the Industry: The perception of esport as a profession has been enhanced by the formation of franchise-based structures, player contracts, and the development of legal provisions. This has attracted serious players and organizations, leading to better competition. As professionalism increases, the quality of events, teams, and competitions in esport improves, which translates into better experiences for spectators.
• Growing Legitimacy of Gaming as a Sport: As the gaming community develops, a larger audience is accepting competitive video games as legitimate competitions. This is increasing the number of viewers, sponsors, and media attention. The growing acceptance of esport as part of the sports world is crucial to its growth and acceptance in society.
Challenges in the esport market include:
• Regulatory and Legal Limitations: Esports market regulation is linked to issues such as online gambling, player contracts, and copyright protection. Many of the overwhelming legal issues take time to resolve, slowing the industry’s growth and providing fewer channels for institutions within the esport industry. Greater clarity in regulatory terms is crucial to promote a lucrative and safe esport market.
• Concerns Over Player Health and Wellness: The emphasis on competition and winning can lead to burnout and affect player health. It is important to address mental health concerns and promote healthy living to maintain a viable esport workforce. Organizations must implement measures that prioritize player health, ensuring that the competitive aspect does not become detrimental.
• Market Saturation and Competition: As the esport market expands, competition among organizations, sponsors, and platforms intensifies. Market saturation may become a concern, presenting challenges such as increasing brand influence and engaging the audience. To overcome this, organizations must be creative and adapt to shifts in consumer behavior and market trends.
Several factors sustain the esport market, including the ever-increasing audience, technological advancements, the shift from conventional sports, increasing professionalism, and society’s acceptance of gaming as a sport. However, challenges such as policies and regulations affecting players, the health of players, and market saturation hinder further advancement. Overcoming these obstacles is critical to allowing the esport industry to prosper.
List of Esport Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies esport companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the esport companies profiled in this report include-
• Twitch Interactive
• Activision Blizzard
• Tencent Holdings Limited
• Riot Games
• Gfinity
• X1 Esports and Entertainment
• Loco
• Caffeine
• DLive Entertainment
• Sony Corporation
Esport by Segment
The study includes a forecast for the global esport by streaming type, revenue streaming, gaming genre, and region.
Esport Market by Streaming Type [Analysis by Value from 2019 to 2031]:
• Live
• Video-on-Demand
Esport Market by Revenue Streaming [Analysis by Value from 2019 to 2031]:
• Media Rights
• Advertisement
• Sponsorship
• Ticket & Merchandise
• Game Publisher Fees
• Others
Esport Market by Gaming Genre [Analysis by Value from 2019 to 2031]:
• Real-time Strategy Games
• First Person Shooter Games
• Fighting Games
• Multiplayer Online Battle Arena Games
• Mass Multiplayer Online Role-playing Games
• Others
Esport Market by Region [Analysis by Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Esport Market
The esport market has continually progressed over the past years due to technological advancements, improving viewership figures, and increasing participation globally. Adoption is also being witnessed in countries like the United States, China, Germany, India, and Japan in areas such as esport tournament organization, streaming services, and corporate sponsorship deals. This unprecedented surge is due to competitive gaming becoming more popular, making it a huge entertainment and business industry.
• The United States: The economy of the United States helps constituents of the esport value chain grow as major tournaments sell to millions of viewers. Some sponsors and advertisers have returned, supporting online TV channels like Twitch, YouTube Gaming, and many others due to the increased usage of these sites. In addition, professional franchises in other sports are buying esport franchises. This is the result of new games and big tournaments, which is why the United States is the center of all esport events and player development.
• China: Within the esport industry, China continues to be a force with a large number of players as well as private and public funds invested in the industry. The number of esport colleges and training centers has also increased, helping to grow local talent. Huge events, such as the League of Legends World Championships, command millions in viewership. Unfortunately, there are also regulations that put controls on issues such as the number of hours that minors can play video games, and this is affecting growth.
• Germany: Germany’s esport economy is on the rise and has been propelled by the available gaming community and the development of esport facilities. Many tournaments take place in the country, and some of the hot games are CS and FIFA. In terms of sponsorship, there has been an increase in deal activity with top brands, which helps make esport organizations more sustainable financially. On the other hand, German colleges are starting to offer courses focused on esport management in response to the demand for such workforce.
• India: India’s esport market is expanding at an increasing rate owing to the young demographic and greater smartphone penetration. Viewership and player participation in localized esport leagues and tournaments are becoming more popular, with titles like PUBG Mobile and Free Fire leading the charge. International organizations are investing in the market and helping to make it more professional. However, the legal risks surrounding related online gaming activities, such as online betting and gaming, are still a big issue in terms of the industry’s potential.
• Japan: Japan is slowly entering the esport industry, though there is still a gradual movement toward embracing competitive gaming as a sport. There is also a crossover of traditional gamers into esport, where companies that make games launch esport tournaments and collaborate with them to venture into the competition. On the other hand, traditional views of gaming as entertainment have made progress difficult. Nevertheless, as interest continues to grow and more competitions are organized, Japan is gradually becoming a force to reckon with in the esport industry.
Features of the Global Esport Market
Market Size Estimates: Esport market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Esport market size by streaming type, revenue streaming, gaming genre, and region in terms of value ($B).
Regional Analysis: Esport market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different streaming types, revenue streaming, gaming genre, and regions for the esport market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the esport market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the esport market size?
Answer: The global esport market is expected to reach an estimated $7.2 billion by 2031.
Q2. What is the growth forecast for esport market?
Answer: The global esport market is expected to grow with a CAGR of 18.4% from 2025 to 2031.
Q3. What are the major drivers influencing the growth of the esport market?
Answer: The major drivers for this market are growing interest in video games, rising number of viewers on internet platforms, and increasing advertising via gaming platforms.
Q4. What are the major segments for esport market?
Answer: The future of the esport market looks promising with opportunities in the real-time strategy game, first person shooter game, fighting game, multiplayer online battle arena game, and mass multiplayer online role-playing game markets.
Q5. Who are the key esport market companies?
Answer: Some of the key esport companies are as follows:
• Twitch Interactive
• Activision Blizzard
• Tencent Holdings Limited
• Riot Games
• Gfinity
• X1 Esports and Entertainment
• Loco
• Caffeine
• DLive Entertainment
• Sony Corporation
Q6. Which esport market segment will be the largest in future?
Answer: Lucintel forecasts that live will remain the larger segment over the forecast period due to increasing emphasis on fan interaction.
Q7. In esport market, which region is expected to be the largest in next 5 years?
Answer: North America is expected to witness highest growth over the forecast period due to existence of large number of online gamers in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the esport market by streaming type (live and video-on-demand), revenue streaming (media rights, advertisement, sponsorship, ticket & merchandise, game publisher fees, and others), gaming genre (real-time strategy games, first person shooter games, fighting games, multiplayer online battle arena games, mass multiplayer online role-playing games, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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