Esports to grow substantially over the next 10 years
According to market research firm Fact.MR, the segment will surpass the €5.19 billion mark by 2028.
Ireland.- The eSports market is likely to surpass €5.19 billion by 2028-end on account of sizeable sponsorships, growing smartphone adoption, the introduction of virtual reality and ameliorating eSports infrastructure. A new study on the global eSports market by Irish market research firm Fact.MR estimates global revenues to grow by 7x through 2028.
As the commercial platform of eSports industry includes the amalgamation of multiple avenues across industries starting from an eSports infrastructure to the broadcast media, the report covers all the vital avenues of the eSports market. Elaborating further, the eSports market is categorised in segments based on device, end-user, age group, revenue stream and region that hold significant influence on the overall performance of the eSports market.
According to the study, an increasing adoption rate of smartphones, development of high definition displays and incrementing internet speed and bandwidth has led to a neck and neck competition between two of the eSports device type segments – tablets & laptops and smartphones. Smartphones are expected to outnumber the tablets and laptops segment by the end of 2028, considering feasibility, popularity and affordability of the devices.
Amidst the prevailing incertitude regarding whether eSports is a sport or a game or a mind sport, the study has categorised two major end-users of the eSports market including professional players and occasional viewers. While the number of occasional viewers is on the rise, professional players hold a major market share as more and more youngsters opt to become a professional gamer. In consonance with this trend, the study reveals that among different age groups, revenue contribution from the age group 26-35 years is estimated to expand at a higher CAGR of about 24% during 2018 – 2028.
The eSports market study traces the lucrativeness of the market in terms of revenue generation from different streams including sponsorships, advertising, media rights, game publisher fees, and merchandise and tickets segments. The research study observes that as the leading brands across industries are making huge investments to sponsor eSports tournaments, the market share of eSports sponsorships segment is expected to expand at a higher growth rate contributing over 40% of the total market share. In addition, a growing number of partnerships among technology providers and investors has also been covered during the phase of the research study.
Although eSports challenges the traditional sports in terms of viewership, entertainment and monetisation, the eSports market lacks legal governance. An absence of sophisticated approach is gradually quenching the true potential of eSports market against the backdrop of various legal and business issues. “The eSports market is expected to overcome these sustainability challenges to maintain a gainful outlook in the years to come,” Fact.MR says.
