Esports - Malaysia

Malaysia

In Malaysia, revenue in the Esports market is projected to reach €5.6m in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 10.67%, culminating in a projected market volume of €9.2m by 2029.
The largest market within this market in Malaysia is Media Rights, which is expected to have a market volume of €1.6m in 2024.
Most revenue in the Esports market is generated the United States, with a projected market volume of €982.1m in 2024.
In Malaysia, the number of users in the Esports market is expected to reach 7.0m users by 2029.
User penetration in the Esports market is anticipated to be 16.4% in 2024, increasing to 19.4% by 2029.
Additionally, the average revenue per user (ARPU) in Malaysia is expected to amount to €0.98.
In Malaysia, the Esports market is witnessing a surge in popularity, driven by increased youth engagement and government support for digital innovation.

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

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The eSports market in Malaysia has seen a steady growth rate, influenced by factors such as increasing awareness and adoption of digital technologies, as well as the convenience offered by online services. However, the market's growth has been subdued due to challenges in areas such as sponsorship, merchandise, streaming, and media rights. These factors have impacted the overall market, leading to a slower growth rate than expected.

Customer preferences: The eSports industry in Malaysia has seen a significant rise in consumer preference for mobile gaming, with a growing number of individuals seeking out mobile-friendly eSports tournaments and events. This shift is driven by the increasing popularity of mobile gaming in the country, as well as the convenience and accessibility of playing on-the-go. Additionally, with the rise of social media and influencer culture, there has been a growing trend of players and teams leveraging social media platforms to connect with fans and attract sponsorships, indicating a shift towards a more digital and social media-driven approach in the industry.

Trends in the market: In Malaysia, the eSports market is experiencing a surge in mobile gaming, with a growing number of players and viewers turning to mobile devices for their gaming needs. This trend is expected to continue as the country's mobile penetration rate continues to rise. Additionally, there is a significant increase in the popularity of eSports tournaments and leagues, with major brands and sponsors investing in the industry. This trend is significant as it solidifies the legitimacy of eSports as a mainstream form of entertainment and presents lucrative opportunities for industry stakeholders. However, it also raises concerns about the potential for exploitation and the need for regulations to protect players and viewers.

Local special circumstances: In Malaysia, the eSports market is thriving due to the country's strong internet infrastructure and young, tech-savvy population. The government has also recognized the potential of eSports and has implemented policies to support its growth. Additionally, Malaysia's diverse culture and love for competitive gaming has contributed to the success of local eSports teams and tournaments. However, strict regulations on gambling and online content may pose challenges for the market's further expansion.

Underlying macroeconomic factors: The eSports market in Malaysia is also affected by macroeconomic factors such as government policies, technological advancements, and investment in the gaming industry. Countries with supportive regulatory environments and significant investment in eSports infrastructure are experiencing rapid market growth compared to regions with regulatory obstacles and limited funding. Moreover, the rising popularity of eSports globally and the increasing disposable income of the Malaysian population are contributing to the growth of the market. Additionally, the growing use of smartphones and internet penetration in Malaysia is creating a favorable environment for the growth of the eSports market.

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.