Esports - Asia

Asia

The Esports market in Asia is predicted to witness a considerable growth in the coming years.
According to industry projections, the revenue in this market is expected to reach a staggering €1,110.0m by the year 2024.
Furthermore, the market is anticipated to exhibit an annual growth rate of 6.11% between 2024 and 2029, resulting in a projected market volume of €1,493.0m by 2029.
Among the various segments within the Esports market, Sponsorship & Advertising holds the largest market share, with a volume of €419.2m in 2024.
It is worth noting that a significant portion of this revenue is generated United States, with a projected market volume of €992.4m in the same year.
In terms of user base, the Esports market is expected to witness a substantial increase, with the number of users reaching 505.4m users by 2029.
This indicates a user penetration rate of 10.7% in 2024, which is projected to rise to 12.5% by 2029.
Lastly, the average revenue per user (ARPU) in the Esports market is expected to amount to €2.64.
These figures highlight the immense potential and profitability of the Esports market industry in Asia, and the significant role it plays in the global gaming landscape.
In South Korea, Esports is not just a hobby, but a national phenomenon with dedicated stadiums and a professional league.

Key regions: China, United States, Asia, Germany, France

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Analyst Opinion

The eSports market in Asia is experiencing steady growth, driven by factors such as increasing popularity and awareness among consumers, as well as the convenience of online services. However, the growth rate is subdued due to challenges in sub-markets such as sponsorship, merchandise sales and streaming. Other factors impacting the market include regulatory hurdles, limited media rights, and the impact of publisher fees on overall revenue.

Customer preferences: The growing popularity of eSports in Asia is fueling a demand for virtual reality (VR) and augmented reality (AR) gaming experiences. With the rise of mobile and cloud gaming, consumers are seeking more immersive and interactive gameplay, driving the adoption of VR and AR technologies. Additionally, the younger demographic in Asia is highly tech-savvy and embraces new technologies, making them a key target market for VR and AR gaming in the region. This trend is likely to continue as technology continues to advance and consumers look for more engaging and realistic gaming experiences.

Trends in the market: In Asia, the eSports market is experiencing a surge in mobile gaming, with a focus on multiplayer online battle arena (MOBA) and battle royale games. This trend is driven by the increasing popularity of smartphones and the growing accessibility of high-speed internet. Additionally, there is a rise in professional eSports teams and leagues, with major companies investing in the industry. This trajectory suggests a potential shift towards mobile eSports dominating the market, presenting opportunities for game developers and advertisers to tap into the growing audience. However, it also raises concerns about the sustainability of the industry, as mobile games tend to have shorter lifespans compared to PC or console games. Industry stakeholders must carefully consider the implications of this trend and adapt their strategies accordingly.

Local special circumstances: In South Korea, the eSports market has been thriving due to the country's strong gaming culture and infrastructure. The government has actively supported the growth of eSports, recognizing it as a legitimate sport and investing in training facilities and professional teams. Additionally, the country's advanced broadband network and widespread use of mobile devices have made it easier for individuals to participate in and spectate eSports events. This has led to a highly engaged and passionate fan base, as well as a competitive and lucrative market for eSports tournaments and sponsorships.

Underlying macroeconomic factors: The rapid growth of the eSports market in Asia is largely influenced by macroeconomic factors such as technological advancements, government support, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in eSports technology are experiencing significant market growth compared to regions with regulatory challenges and limited funding. Furthermore, the increasing popularity of eSports among the younger population and the rise of online gaming communities are driving the demand for eSports in Asia. The region's strong economic growth and increasing disposable income are also contributing to the growth of the eSports market as more individuals are able to afford and access gaming equipment and subscriptions.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports market, which comprises revenues from and users of professional competitive gaming content. This includes any professional and semiprofessional gaming competitions within tournaments or leagues that offer a championship title or prize money. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.