eSports (commonly refer as electronic sport) is a type of sport facilitated by electronic system in which all the functions of the sport are performed through human-computer interface. eSports is allowing the users to experience different type of game aspects including ladder, tournament and league through single system. eSports is played by professional gamers who are usually part of sporting organisations, or they are sponsored by business organisations. eSports provides several competitive advantages such as selection of teams, players, and organisations which are not bound with location and ability to integrate with non-traditional media.

Developers, publishers and organisers are the major components of eSports market. Developers are responsible for coming up with an idea and develop the game, whereas publishers are responsible for overall marketing and distribution activities.

eSports Market: Drivers and Restraint

eSports are facilitated though electronic system that can be streamed on different platforms including social media, where as traditional sports are still struggling to go beyond the traditional mediums such as print, radio & TV. Ability to stream on non-traditional platforms, advancements in gaming technologies, increase in awareness about eSports due to attention given by worldwide publishers, investors & broadcasters and increase in number of eSports enthusiast are the major drivers responsible for growth of eSports market. 

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eSports are comprised of different communities and games. Performance of the eSport system 2heavily depends on size, structure and idea behind the development of game. Operator do not have full control over the tournaments and leagues, as the goals of publisher differ from those of operator. Fraudulent betting is another challenge that can negatively affect the growth of eSports market.

eSports market: Segmentation

eSports market can be classified on the basis of revenue source, platform, product and game.

On the basis of revenue source, the market can be categorised into sponsorship & advertising, eSports betting & fantasy site, prize pool, amateur & micro tournament, merchandising, and ticket sale. Sponsorship & advertising was the dominating segment followed by Betting & fantasy site in this category in 2015. This can be attributed to large number of new brands and advertisers entering the market.

On the basis of platform, eSports market can be segmented into PC and Console. PC had the highest market share in the category in 2015, as PC platform based games are more powerful and bigger than console..

eSports market can be segmented in to mice, controller, headset, keyboard, and other accessories on the basis of product.

eSports is composed of different genre of games. The games can be played by a single player or by multiple players. On the basis of game, eSports market can be classified as Multiplayer online battle arena (MOBA), real time strategy, first person shooter, fighting and sports. Fighting games was the most dominant category in the overall eSports market in 2015.

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Segmentation on basis of Region:

eSports market is segmented into 7 key regions- North America, Latin America, Eastern Europe, Western Europe, Asia Pacific excluding Japan, Japan, and Middle East & Africa.

eSports Market: Region-wise Outlook

Currently, North America is the dominant region in terms on number of gamers and revenue generation in overall eSports market. US had the highest market share in terms of revenue contribution as it had highest number of eSports enthusiasts and gamers in the region.

Europe was the second largest regional contributor after North America in global eSports market. Germany and UK are the leading markets in the region.

Asia Pacific is the fastest growing region in terms of number of enthusiast & gamers, owing to increasing audience and emergence of new technologies that are driving growth in the region. China and South Korea accounted for majority of the market share in the region.

eSports Market: Key Players

Riot Games Inc. (US), Hi Rez Stuidos (US), Activision Blizzard Inc. (US), Wargaming Public Co Ltd  (Cyprus),Electronic Arts, Inc. (US), GungHo Online Entertainment Inc. (Japan),Kabam Inc. (US), King Digital Entertainment PLC (Ireland), Rovio Entertainment Ltd. (Finland), Zynga Inc. (US), Gamevil Inc. (South Korea).

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