The rise of 5G technology and other key tech trends will propel the world of eSports, expected to reach a whopping $4.47 billion by 2030, according to a study by Cognitive Market Research.
The report, which analysed various trends and factors driving the growth of the global eSports market, highlighted the impact of 5G technology, and its predecessor, 4G, as key drivers for the industry’s expansion.
The arrival of 5G technology has been a game-changer for the eSports industry, authors of the Cognitive Market Research say, offering faster download and upload speeds, lower latency, and more stable connections. These advancements have paved the way for a new era of online gaming, enabling players to compete in real-time without any lag or delays.
eSports industry expansion
However, the report explains that the laptop/ tablet/ desktop segment is projected to grow at a faster rate in coming years owing to rising laptop ownership worldwide. “Further, laptops offer high-end hardware in comparison to other devices, like smartphones, which allows a more impactful experience for the users,” according to Cognitive Market Research.
The Asia-Pacific region is expected to lead the eSports market, driven by the growing popularity of gaming in countries like China, South Korea, and Japan. North America and Europe are also expected to see significant growth, with the rise of streaming platforms like Twitch and the increasing number of eSports tournaments and leagues.
The report also identified other factors that are expected to contribute to the growth of the eSports industry, such as the increasing popularity of mobile gaming, the rise of virtual reality, and the expanding fan base of eSports enthusiasts.
“Over the last few years, there has been a rapid increase in smart device adoption and internet penetration. Smart devices offer flexibility to customers on a smartphone, laptop, desktop, or tablet. With these devices, users can access several eSports through apps and websites,” the report says.
According to a study, the number of mobile internet users in 2020 was 4.28 billion, and more than 90% of the worldwide internet population has access to the internet through a mobile device. Until March 2021, the internet penetration rate in Asia was 62%, 88% in Europe, and 90% in North America.
“With technological advancement,” the authors say, “various organisations are releasing numerous electronic sports that can be played online. This enables several people to entertain themselves as well as to earn money. In these apps or websites, users can play a wide range of games, including cricket, hockey, football, basketball, and kabaddi. This promotes market expansion.”
Key eSports market trends:
- The growing adoption of smart devices coupled with rising internet connectivity drives the growth of the eSports market;
- Live eSports streaming type accounts a significant share in the market attributed to the increase in the number of internet users across the globe. It influences live video streaming. Moreover, it involves more engagement of fans which accelerates market growth. High penetration of technologies, such as 4G and 5G services energies demand for the live streaming type of eSports;
- Platform segment is dominating the market by accounting for 69.4% of the revenue market share in 2022;
- In terms of device type, the smartphone segment is set to generate the highest revenue in 2022, and it is expected to dominate the market during the forecast period. This is because of the increasing number of people using smartphones. It has been projected that; the number will be somewhere at 6.8 billion in 2023;
- However, the laptop/ tablet/ desktop segment is projected to grow at a faster rate in coming years owing to rising laptop ownership worldwide. Further, laptops offer high-end hardware in comparison to other devices, like smartphones, which allows a more impactful experience for the users;
- On the basis of revenue streaming, the sponsorship segment held a major share in the market in 2022. Sponsorships allow various brands to reach directly to a large target audience. For instance, Coca-Cola has used Fortnite Island to launch the limited-edition gaming-inspired flavour Zero Sugar Byte in April 2022;
- The APAC region has highly adopted electronic sports, and thrived during the pandemic. This is attributed to the massive demand for eSports in countries like China, Vietnam, and Singapore, among others. In some parts of Asia, platforms such as YouTube Gaming, Facebook Gaming, Twitch, and Garena Live have emerged as popular choices among the population;
- Advent of the COVID-19 pandemic has accelerated the industry for eSports.