Gaming on the Rise: Trends and Insights into the Booming eSports Market ⋆

Gaming on the Rise: Trends and Insights into the Booming eSports Market

The Global eSports Market size is valued at USD 1.42 Billion in 2022 and is projected to be USD 4.47 Billion by 2030, growing at a CAGR of 17.8% from 2023 to 2030, as per a recent report published by Cognitive Market Research (CMR). Companies are entering into partnerships in order to support and expand their operations in the eSports business.

For instance, Microsoft and NVIDIA have agreed to enter a ten-year cooperation to deliver Xbox PC games to the NVIDIA GeForce NOWTM cloud gaming service, which has more than 25 million subscribers worldwide. While using GeForce NOW, gamers can now stream Xbox PC games to PCs, Mac computers, Chromebooks, cell phones, and other devices.

Major findings during the study of the eSports Market:

The growing adoption of smart devices coupled with rising internet connectivity drives the growth of the eSports market
Live eSports streaming type accounts for a significant share of the market attributed to the increase in the number of internet users across the globe. It influences live video streaming. Moreover, it involves more engagement of fans which accelerates the market growth. High penetration of technologies, such as 4G and 5G services energies demand for the live streaming type of eSports
The platform segment is dominating the market by accounting for 69.4% of the revenue market share in 2022
In terms of device type, the smartphone segment is set to generate the highest revenue in 2022, and it is expected to dominate the market during the forecast period. This is because of the increasing number of people using smartphones. It has been projected that; the number will be somewhere at 6.8 billion in 2023
However, the laptop/ tablet/ desktop segment is projected to grow at a faster rate in the coming years owing to rising laptop ownership worldwide. Further, laptops offer high-end hardware in comparison to other devices, like smartphones, which allows a more impactful experience for the users
Based on revenue streaming, the sponsorship segment held a major share in the market in 2022. Sponsorships allow various brands to reach directly to a large target audience. For instance, Coca-Cola has used Fortnite Island to launch the limited-edition gaming-inspired flavor Zero Sugar Byte in April 2022
The APAC region has highly adopted electronic sports and thrived during the pandemic. This is attributed to the massive demand for eSports in countries like China, Vietnam, and Singapore, among others. In some parts of Asia, platforms such as YouTube Gaming, Facebook Gaming, Twitch, and Garena Live have emerged as popular choices among the population
The advent of the COVID-19 pandemic has accelerated the industry for eSports.

What are the Growth, Drivers, and Restraints for the eSports Market?

Drivers:

Growing adoption of smartphones coupled with rising internet connectivity:

Over the last few years, there has been a rapid increase in smart device adoption and internet penetration. Smart devices offer flexibility to customers on a smartphone, laptop, desktop, or tablet. With these devices, users can access several eSports through apps and websites.

According to a study, the number of mobile internet users in 2020 was 4.28 billion, and more than 90% of the worldwide internet population has access to the internet through a mobile device. Until March 2021, the internet penetration rate in Asia was 62%, 88% in Europe, and 90% in North America.

With technological advancement, various organizations are releasing numerous electronic sports that can be played online. This enables several people to entertain themselves as well as to earn money. In these apps or websites, users can play a wide range of games, including cricket, hockey, football, basketball, and kabaddi. This promotes market expansion.

As online gaming and associated activities gain traction, the eSports market is expected to see a considerable increase in income. The popularity of these games has surged with the introduction of various applications and websites. People are attracted to eSports for multiple reasons.

The primary reason for this is that players can win real money. Some players even make a full-time career by participating in competitions.

Similarly, key players are participating in various measures to increase awareness regarding the market among players which helps in enhancing the target market.

For instance, EFG, an independent esports event organizer conglomerate, has acquired Vindex to support and inflate its operations.

Restraint:

Cybersecurity Threats:

There are several cybersecurity dangers associated with internet gaming. This is because online gaming has achieved a global reputation, produced large quantities of money, and drawn the interest of hackers. Cybercrime has expanded to the point that it is costly for both gamers and organizations in the gaming sector. This is impeding market expansion.

Since online gaming platforms collect a lot of personal information from their users, players’ accounts are frequently targeted by hackers. The accounts of gamers contain private information like their location, media participation, and so on.

Furthermore, while playing eSports, gamers may download applications while doing things like joining leagues, scouting players, or engaging in various activities, in addition to going online to do research. The risk arises if consumers download fake software that contains malware, install ads on their devices, or steal data. Thus, cybersecurity dangers associated with eSports may hamper the growth of the market.

How has COVID-19 Impacted the eSports Industry?

The advent of the COVID-19 pandemic has accelerated the industry for eSports. The shutdown of sports events and gyms caused exponential growth in the electronic sports industry. People were looking for alternative forms of entertainment due to various restrictions imposed by the Government on traveling and public events. This has further stimulated the adoption of eSports across the globe.

Besides, some of the big corporate sponsors could not advertise themselves at various public events during the pandemic. Hence, they started spending on huge ad spends in eSports. During the pandemic, the eSports market has experienced a shift where more and more people open up a web browser to watch streaming content, rather than sitting in front of a television.

Unlike traditional sports, which took longer to adjust to quarantine, the esports business did so rapidly. They didn’t hold any of their events in person, rather they went only online. They switched from sponsorship of arena advertisements to streaming advertiser income.

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