Esports Market Expected to Reach $9.2 Billion by 2033

According to a new report published by Allied Market Research, titled, “Esports Market Size, by Application (Platform, Service), by Streaming type (On demand, Live), by Device Type (Smart phone, Smart TV, Desktop -laptop-tablets, Gaming console), by Revenue Stream (Media rights, Game publisher fee, Sponsorship, Digital advertisement, Tickets and merchandise): Global Opportunity Analysis and Industry Forecast, 2024-2033". The esports market was valued at $1.3 billion in 2023, and is estimated to reach $9.2 billion by 2033, growing at a CAGR of 21.2% from 2024 to 2033.

Esports is also known as electronic sports, which is a competitive game organized between two teams on an online platform. The adoption of esports is significantly growing, owing to rise in technology development, and online platforms.   

The esports market growth is growing due to several key factors, such as increase in popularity of online video games, rise in mobile gaming penetration, and technological advancements. However, data privacy and security concerns and regulatory and legal challenges are further expected to hamper the global market growth. Furthermore, growing sponsorship and investment strategies are expected to provide numerous opportunities for the growth of global esports market. 

The Esports market is witnessing dynamic growth driven by several transformative trends. The dominance of mobile gaming, particularly in emerging markets, is expanding accessibility and audience reach. Significant investments from major brands, sports organizations, and tech firms are enhancing the market’s infrastructure and professional standards.

On the basis of streaming type, the on demand segment dominated the esports market in 2023. This can be attributed to the increasing popularity of streaming platforms that allow users to watch esports content at their convenience, enabling greater flexibility and access to a broader audience. However, the live segment is projected to attain the highest CAGR during the forecast period, owing to rise in demand for real-time interactions and experiences among viewers, as live streaming allows fans to engage with events as they happen, fostering a sense of community and excitement. 

On the basis of region, North America attained the highest growth in 2023, driven by advancements in technology, increased investments in various industries, and rise in demand for innovative solutions across sectors. The region's robust infrastructure, coupled with favorable government initiatives and the presence of key market players, contributed to this significant growth. However, Asia-Pacific is projected to attain the highest CAGR during the forecast period. This growth is attributed to several factors, including rapid rise in population of gamers, rise in internet penetration, and the growing popularity of online gaming and esports events in countries like China, South Korea, and Japan.  

Cloud adoption in the esports market size has been a transformative force, revolutionizing how games are developed, hosted, and played. With rise in demand for seamless gaming experiences and real-time interaction, cloud technology allows esports companies to leverage scalable resources for hosting tournaments and managing large volumes of data. For instance, in September 2024, Cloud9 partnered with Nvidia.  Cloud9 is looking to develop new custom AI models to enhance competitive strategies and player performance as well as deliver high-quality content creation, with NVIDIA supporting both processes. This includes NVIDIA Reflex, which will help measure and reduce system latency on their scrim PCs. Such instances are further expected to propel the growth of the global esports industry. 

The report focuses on growth prospects, restraints, and trends of the esports market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, the threat of substitutes, and bargaining power of buyers, on the esports market. 

Key Findings of The Study 

• By application, the platform segment accounted for the largest esports market share in 2023.  

• By streaming type, the on demand segment accounted for the largest market share in 2023.  

• By device type, the smart phone segment accounted for the largest esports industry share in 2023.  

• By revenue stream, the sponsorship segment accounted for the largest market share in 2023.  

• Region-wise, North America generated the highest revenue in 2023.    

The market players operating in the esports market forecast are Activision Blizzard, Inc., CJ Corporation, Electronic Arts, FACEIT, Gameloft SE, Gfinity, Kabam, Modern Times Group, Nintendo, and NVIDIA Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the esports market growth globally.