Esports - United States

United States

The Esports market in the United States is projected to reach a revenue of €992.4m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 15.4%, resulting in a projected market volume of €1,494.0m by 2029.
The largest market within the Esports market industry is Esports Betting, with a market volume of €668.8m in 2024.
In terms of revenue generation, United States leads the Esports market, with a projected market volume of €992.4m in 2024.
Looking ahead, the number of users in the Esports market is expected to reach 72.5m users by 2029.
User penetration is forecasted to be 15.4% in 2024 and is expected to reach 20.7% by 2029.
The average revenue per user (ARPU) is projected to be €18.84.
The United States is experiencing a surge in Esports popularity, with a growing number of professional teams and a dedicated fanbase.

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

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Analyst Opinion

Esports is a fast-growing market within the world of gaming, mainly driven by increasing digitalization, the growing use of smartphones, and rising awareness of gaming. Faster and better technology is opening up new opportunities, and the COVID-19 pandemic has been fueling the demand for Esports. The market is expected to grow steadily due to the formation of more teams, tournaments, and companies, creating a wide-reaching platform for sponsorship and advertisement. Because of the rising number of live-stream viewers and greater profitability, both the prize money from tournaments and the amount of money invested in different teams are projected to increase.

Even though China is still the biggest market for Esports, the U.S. is catching up, having played the most Esports tournaments so far. Esports teams in the U.S. are continuously growing, building up huge companies, such as FaZe Clan, which recently entered the Nasdaq stock exchange. Merchandising and ticketing are witnessing particularly strong growth, thanks to a growing awareness among gamers. The COVID-19 pandemic has had a major impact on market growth; even though there were no live events, consumers could enjoy professional gaming in the form of live streams. Consequently, the market has grown, resulting in a market volume of US$282.16 million in 2022.

Esports will definitely establish a strong position in the overall gaming market. Events will get bigger and bigger, just as the hype around different teams. Even betting will become more prevalent in the future. As a result, the market is expected to grow to US$422.12 million in 2027, with an overall audience of 41.4 million in the U.S. alone.

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.