Esports market grows 23% p.a.: set to reach €9.6bn by 2031
According to Transparency Market Research (TMR), the rising influence of digitalisation coupled with advancements across the gaming industry is expected to fuel the growth of the esports market from 2021-2031. In addition, esports is fast emerging as an ideal source of entertainment for numerous consumers. Hence, these factors assure extensive growth opportunities.
Awareness about esports through organising various awareness events has proved to be beneficial for growth acceleration. For instance, on October 23, every year, is celebrated as the World Esports Day. Such days and events are projected to propel the esports market.
Transparency Market Research has conducted an extensive research project on various factors associated with the growth of the esports market. The global market for esports, according to the analysts of TMR, is expected to expand at a CAGR of 23.2% during the forecast period. The global esports market is prognosticated to reach the value of US$11.16bn (eds. €9.6bn).
According to the report, while the COVID-19 pandemic has resulted in many sectors suffering from economic loss, in the context of the esports market, the pandemic proved to be a growth propeller. As many people were at home, they longed for consistent entertainment. Esports became an important aspect of home entertainment and gathered considerable momentum. This trend is projected to continue further during the forecast period, thereby increasing the growth rate of the esports market.
However, esports have become a cause of worry for many parents as teenagers constantly indulge in gaming activities. Sitting for longer durations can result in health risks such as type 2 diabetes, heart diseases, and others. In order to overcome this issue, gaming companies in the esports market are displaying disclaimers about parental or guardian discretion to avoid further harm.
Virtual Tournaments to Propel Growth Opportunities
Virtual tournaments are observing considerable popularity among masses. The growing interest in virtual tournaments has resulted in many gaming companies organising large-scale digital events. These events increase the growth opportunities to a great extent.
Recently, the International Olympic Committee (IOC) launched the Virtual Olympic Series where competitors can play virtual versions of different physical sports such as baseball, cycling, motorsport, rowing, and sailing. Such developments help in promoting esports and promote the growth of the esports market.
Esports Courses to Offer Substantial Growth Prospects
Many academic institutions are partnering with companies in the esports market to provide professional esports courses to budding learners and those who want to make a career in this sector. The esports courses prominently discuss aspects such as streaming, event or tournament organisation, etc. The courses also teach students how to run an esports company successfully. Wyndham Tech School, an Australia-based school, recently launched the first high school in Australia dedicated to esports. These developments help in boosting the growth prospects of the esports market.
The esports sector is attracting technology giants such as Apple, Microsoft, and Google for investments. The exponential growth of the esports market can be attributed to this factor. Investments by large companies are projected to continue in the upcoming years, as the popularity of esports increases.
Some of the key players in the esports market are Electronic Arts Inc., Nintendo Co. Ltd., Modern Times Group, Activision Blizzard Inc., G2 Esports, Inc., GungHo Online Entertainment, Inc., Gameloft SE, Rovio Entertainment Corporation, and Wargaming Public Co. Ltd.
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