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

Esports is a fast-growing market within the world of gaming, mainly driven by the ongoing digitalization, increasing smartphone usage, and rising awareness of gaming. Faster and better technology opens up new possibilities, with the COVID-19 pandemic fueling the demand for Esports. The market will constantly grow due to the creation of more teams, tournaments, companies, and hence a wide-reaching platform for sponsorship and advertisement. Not only does the prize money from tournaments rise but also the amount invested into different teams, owing to the increase in live stream viewers and profitability. With China remaining the biggest market and the U.S. and Germany following behind, the Esports market is expected to witness strong double-digit growth. Recent consolidation in the gaming industry and the entry of FaZe Clan into the stock market have drawn further attention to the 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.