The global esports market has experienced exponential growth over the past decade, transforming from niche competitions to a multi-billion dollar industry. According to a new study, the market projects even more massive gains over the next decade.
Verified Market Research, an analytical research solutions firm, expects increased digitization, rising viewership, and growing investments from sponsors and advertisers to propel the global esports market to a USD 7.5 Billion valuation by 2031, on a 21.5% compounded annual growth rate (CAGR). The report notes that the market was valued at over $2 billion in 2023.
Esports has quickly become one of the most popular sporting leagues in the world, with revenue projections expected to reach $2.5 billion by the end of 2024.
This surge in popularity is fueled by advancements in technology, increased accessibility, and a growing mainstream acceptance of competitive gaming. As a result, esports now boasts a diverse and expansive audience, drawing in both dedicated fans and major corporate sponsors worldwide.
Growth Factors
With more and more people gaining access to high-speed internet and digital devices, our global society is more connected than ever via social media and other digital platforms. Demand for online gaming and esports events has increased in line with this trend, spurring continued investment by major companies like Activision Blizzard, Electronic Arts, Tencent Holdings, and Sony.
Streaming platforms like Twitch and YouTube Gaming have also helped stimulate a global audience for esports viewership, and betting platforms have taken notice. Toronto-based Rivalry Corp, a Gen Z-focused online gambling operator, relies heavily on internet culture and esports viewership to attract new customers to its wagering platform.
Major brands are also recognizing the benefits of the esports sector for engaging younger demographics, with bet365 recently bringing esports betting to Kentucky.
The Downside
Naturally, a few key constraints stand in the way of uncapped growth for the global esports market.
For one, it requires significant upfront expenditures to establish a competitive gaming infrastructure and organize large-scale events within it. Inconsistent legislation and legal ambiguities surrounding online gaming and betting have also led to regulatory difficulties in many different places.
For instance, Gambling Act 2005 gave UK bettors access to the best esports betting sites, whereas the United States Supreme Court failed to make an official ruling on the legitimacy of esports as a sports betting market when it overturned PASPA in 2018.
Concerns over addiction are always an elephant in the room when it comes to expanding any gaming or gambling vertical, or any source of entertainment for that matter. With the recent increase in athletes betting on sports, it's fair to wonder what the further proliferation of the esports market means for those wagering on the action.
