Esports - China

China

China is projected to witness a significant growth in its Esports market revenue, reaching a staggering €461.4m by 2024.
The market is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 4.84%, resulting in a projected market volume of €584.3m by 2029.
Among the various segments, Sponsorship & Advertising stands out as the largest market, with a substantial volume of €267.9m in 2024.
It is worth noting that United States leads in terms of revenue generation, with a projected market volume of €992.4m in 2024.
Moving beyond revenue, the Esports market in China is also anticipated to witness a significant increase in the number of users, which is projected to reach 245.6m users by 2029.
User penetration, a measure of the percentage of the population engaged in Esports market, is expected to be 14.5% in 2024 and is projected to rise to 17.3% by 2029.
Furthermore, the average revenue per user (ARPU) is expected to amount to €2.23, emphasizing the potential for monetization within the Chinese Esports market.
China's Esports market is booming, with a massive fan base, significant investments, and a strong professional league system.

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

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Analyst Opinion

The eSports market in China is experiencing moderate growth, influenced by factors such as increasing awareness and adoption of digital technologies, along with the convenience of online services. However, this growth is subdued due to challenges in areas such as sponsorship & advertising, merchandise & ticketing, and media rights. Additionally, the market is impacted by publisher fees and the growing popularity of eSports betting. Despite these obstacles, the market is expected to continue growing in the coming years.

Customer preferences: As the popularity of eSports continues to grow in China, there has been a noticeable shift towards mobile gaming and live streaming platforms. This trend is largely driven by the younger demographic, who are highly tech-savvy and prefer to consume content on-the-go. Additionally, the rise of social media and influencer marketing has also played a significant role in the increasing interest and engagement in eSports among Chinese consumers. This trend highlights the importance of digital platforms and influencer partnerships in reaching and engaging with the target market in the eSports industry.

Trends in the market: In China, the eSports market is experiencing a surge in mobile gaming, with more and more players turning to smartphones for their gaming needs. This trend is being driven by the growing penetration of smartphones and the increasing availability of high-speed internet. Additionally, there is a rise in the popularity of live streaming platforms for eSports events, providing a new source of revenue for the industry. This trend is significant as it allows for a wider reach of eSports to a larger audience and opens up opportunities for monetization. Industry stakeholders should take note of this trend and develop strategies to capitalize on the growing mobile gaming market in China.

Local special circumstances: In China, the eSports market has experienced explosive growth thanks to the country's massive population of gaming enthusiasts and the government's support for the industry. The Chinese government has invested heavily in eSports infrastructure, hosting major tournaments and creating dedicated eSports parks. Additionally, the cultural importance of gaming in China has led to the rise of mobile eSports and the popularity of live streaming platforms. However, strict regulations on foreign game titles and game content censorship can also impact market dynamics in China.

Underlying macroeconomic factors: The eSports market in China is significantly impacted by macroeconomic factors such as the country's economic growth, government policies, and investments in technology and infrastructure. With China's rapidly growing economy and strong government support for the development of eSports, the market is expected to continue its rapid growth. Additionally, the increasing popularity of eSports among the younger generation and the rise of internet and smartphone usage in the country are contributing to the market's growth. Furthermore, the growing disposable incomes of Chinese consumers are also fueling the demand for eSports, as people are willing to spend more on leisure and entertainment activities. This favorable economic environment and supportive government policies are expected to drive the growth of the eSports market in China in the coming years.

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.