Esports - United Kingdom

United Kingdom

In the United Kingdom, revenue in the Esports market is projected to reach €212.1m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.11%, leading to a projected market volume of €285.3m by 2029.
The largest market within the Esports market is Esports Betting, which is anticipated to have a market volume of €159.8m in 2024.
Although most revenue is generated the United States, in the United Kingdom is also witnessing growth, with the number of users in the Esports market expected to reach 23.8m users by 2029.
User penetration in the United Kingdom will be 28.2% in 2024 and is projected to increase to 34.5% by 2029.
Additionally, the average revenue per user (ARPU) in the Esports market is expected to amount to €11.08.
The United Kingdom's esports market is witnessing a surge in grassroots tournaments, fostering local talent and enhancing community engagement within the gaming ecosystem.

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

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Analyst Opinion

The eSports market in the United Kingdom is facing subdued growth, influenced by factors such as slow adoption of digital technologies, limited awareness among consumers, and lack of convenience in online services. This is evident across all sub-markets, where sponsorship, ticketing, and streaming are struggling to gain traction. The market's growth rate is impacted by these challenges, making it difficult for the industry to reach its full potential in the UK.

Customer preferences: The eSports market in the United Kingdom has witnessed a shift in consumer preferences towards mobile gaming and streaming platforms. With the rise of mobile devices and faster internet speeds, there has been a growing demand for on-the-go gaming experiences. Additionally, the younger demographic has shown a preference for streaming their gameplay on platforms like Twitch and YouTube, highlighting a shift towards more interactive and social gaming experiences. This trend is driven by the evolving lifestyle of consumers, who are seeking more immersive and connected forms of entertainment.

Trends in the market: In the United Kingdom, the eSports market is experiencing a surge in mobile gaming, with a significant increase in the number of players using their smartphones to compete in tournaments and leagues. Additionally, there is a growing trend of incorporating virtual and augmented reality technology in eSports events, providing a more immersive experience for both players and viewers. This trend is expected to continue, as advancements in technology make it more accessible and affordable. As a result, industry stakeholders should consider investing in these technologies to stay competitive and attract a wider audience. Furthermore, this trend has potential implications for the traditional sports industry, as eSports continues to gain mainstream recognition and compete for viewership and sponsorship deals. Overall, the trajectory of these trends signals a promising future for the eSports market in the United Kingdom.

Local special circumstances: In the United Kingdom, the eSports market is thriving due to the country's strong history and culture in gaming. The UK has a large population of avid gamers, as well as a developed infrastructure for eSports tournaments and events. Additionally, the country's liberal approach to online gambling has led to the rise of eSports betting, further driving the growth of the market. The UK's geographical location also allows for easy access to other European markets, making it a key hub for international eSports competitions. However, strict regulations on advertising and sponsorship in the gambling industry may pose challenges for the growth of eSports in the UK.

Underlying macroeconomic factors: The growth of the eSports market in the United Kingdom is heavily affected by macroeconomic factors such as consumer spending, economic stability, and government support. The country's strong economy and high consumer spending power have contributed to the growth of the eSports market, as consumers have more disposable income to spend on gaming and related products. Additionally, the UK government has shown support for the eSports industry through initiatives such as tax breaks for game developers and investment in gaming infrastructure. However, global economic uncertainties and potential changes in fiscal policies could impact the market's growth in the future.

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.