A recent report by SNS Insider shows that the esports market was valued at $2.49 billion in 2022 and is projected to reach a staggering $11.98 billion by 2030, growing at a compound annual growth rate (CAGR) of 21.7% from 2023 to 2030.
Esports has grown significantly over the past few years and according to the report, the advancement of technology has made esports more accessible, immersive and profitable.
Accessibility is that esports is now being watched by people across the globe thanks to high-speed internet, reliable streaming platforms and of course powerful gaming hardware. VR and AR technologies have created a more realistic experience that has attracted more players while the influx of sponsors and advertisers has boosted revenue streams for esports events and teams.
Driving factors of esports growth
This report also acknowledges that the rapid growth of esports is being driven by several factors such as:
- The ever-increasing popularity of video games: As more and more people play games, the pool of potential esports viewers and participants grows larger.
- The increasing number of esports tournaments and events: This is another factor driving the growth of esports as there are now more opportunities for people to watch and participate in esports than ever before.
- Investment from brands and sponsors: Brands and sponsors are seeing the potential of esports to reach a large and engaged audience, and they are investing in the sport to get their brand in front of this audience.
As the esports market is divided into different segments, the report also touches on each including device type including:
- By device type: This is segmented into four main categories: smartphone, smart TV, desktop/laptop/tablets, and gaming console with the smartphone segment as the largest, followed by the smart TV segment.
- By streaming type: This is segmented into two main categories: live streaming and on-demand streaming. The live streaming segment is larger, as people prefer to watch esports events live.
- By application: This is segmented into two main categories: platform and service. The platform segment is larger as it includes popular platforms that are used to watch esports events, such as Twitch and YouTube.
- By revenue stream: This is segmented into six main categories: media rights, game publisher fees, sponsorship, digital advertising, tickets, and merchandise. The sponsorship segment is the largest, thanks to brands and sponsors that are increasingly investing in esports.
- By region: The esports market is segmented into five main categories: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America is the largest esports market, followed by Europe and Asia Pacific.
The esports market is a fast-paced and ever-evolving industry. The factors that are driving its growth are likely to continue in the coming years, which SNS concludes means that the market is expected to continue to grow rapidly.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
