If you‘re not yet an eSports fan, you may be soon. Competitive video gaming has exploded from a niche hobby to a mainstream global phenomenon over the past decade. Hundreds of millions of viewers now tune in to watch professional video game competitions.
In this comprehensive guide, I‘ll overview the key statistics and trends defining the meteoric rise of eSports in 2023. Together, we‘ll explore questions like:
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How fast is the eSports industry growing?
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What is the size and scope of the global eSports audience?
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Which major brands sponsor eSports?
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How much revenue do top eSports games generate?
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Where does eSports betting and wagering fit in?
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How is college eSports progressing?
Let‘s dive in and unpack the numbers!
Contents
Quick eSports Growth Stats
First, here are a few key stats to give you a sense of the eSports industry‘s massive growth:
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The total global eSports audience will reach 474 million in 2021, a year-over-year growth of +10.8%. [Source: Newzoo]
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Global eSports revenue will top $1.08 billion in 2021, an increase of +23.2% from 2020. [Source: Newzoo]
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The eSports betting market hit $12.69 billion in 2020 and will reach $16.74 billion by 2024. [Source: Banyan Hill]
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There are approximately 200 million occasional viewers and 234 million eSports enthusiasts worldwide as of 2021. [Source: Statista]
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The hours watched on Twitch increased from 2 billion hours in Q1 2018 to 9.2 billion hours in Q1 2021, representing 358% growth in 3 years. [Source: StreamElements]
Let‘s explore what‘s driving this explosive industry expansion.
Global eSports Market Size
The eSports market has demonstrated astounding growth over the past decade. Here are some key statistics on its market size:
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The global eSports market generated revenues of $947.1 million in 2020. [Newzoo]
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Those revenues will climb to $1.08 billion in 2021, representing a total growth rate of +23.2%. [Newzoo]
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By 2024, the market is forecast to reach $1.62 billion, driven by a +12.9% CAGR from 2019-2024. [Newzoo]
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Media rights and sponsorships make up the majority (83%) of eSports market revenue. [Newzoo]
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In 2021, China, North America and Western Europe together will generate approximately 75% of global eSports revenue. [Newzoo]
Global eSports Market Revenue Share by Region
Source: Newzoo Global Esports & Live Streaming Market Report 2021
As visualized above, China, North America and Western Europe command the majority of eSports market revenue. But many other regions are demonstrating growth too.
The meteoric rise of eSports is likely to continue as competitive gaming gains mainstream popularity worldwide.
eSports Audience Demographics
Understanding the makeup of eSports fans is crucial for companies seeking to enter the market. Here are some key details on current audience demographics:
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There were 474 million eSports viewers worldwide in 2021. [Newzoo]
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The global eSports audience will surpass the 500 million milestone in 2022. [Statista]
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Males make up 75% of eSports fans globally as of 2021. [Forbes]
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22% of eSports viewers are female as of 2021. [Forbes]
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The largest demographic of eSports viewers is 21 to 35 years old (45% as of 2021). [Forbes]
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Only 7% of U.S. adults say they are avid fans of eSports, though fandom is growing worldwide. [Morning Consult]
Global eSports Audience Gender Breakdown
Source: Forbes
As shown above, male viewers significantly outnumber female viewers in eSports today. However, women still represent a sizable portion of fans at 22% globally.
Let‘s look at how viewership differs by geographic region:
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The Asia-Pacific region accounts for 57% of all eSports viewers worldwide as of 2021. [Forbes]
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North America represents about 12% of the global eSports audience as of 2021. [Forbes]
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Western Europe comprises around 16% of total eSports viewership globally as of 2021. [Forbes]
Clearly, the Asia-Pacific region dominates eSports viewership, though North America and Europe combine to make up over one-quarter of the total audience.
The data shows eSports has a strong global following, especially among Millennial and Gen Z fans prized by advertisers and brands. While female viewership trails male viewership, women still represent a significant fan base.
eSports Game Popularity
Within the flourishing eSports industry, certain games stand out as hot titles based on number of players, viewership hours, and tournament prize pools.
Here are some of the most popular eSports games right now:
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League of Legends: Over 7,733 pro players, $87+ million in prize money, huge Twitch presence. [eSports Earnings]
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Dota 2: 4,000+ pro players, over $260 million in prize money. [eSports Earnings]
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Counter-Strike: 13,000+ pro players, around $120 million in prize money. [eSports Earnings]
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Fortnite: Exploded in popularity recently with 4,700+ pro players and $102 million in prize money since launching in 2017. [eSports Earnings]
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Overwatch League: Drew over 300,000 average viewers per minute on YouTube in 2021. [Esports Observer]
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Valorant: Quickly attracted over 14 million monthly active players after 2020 launch. [Forbes]
Top eSports Games by Prize Money
Source: eSports Earnings
As the chart above shows, Dota 2 holds the lead for most total prize money awarded, followed closely by Counter-Strike. Fortnite has quickly entered the top ranks since releasing in 2017.
Let‘s look at the most-watched games on live streaming platforms:
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League of Legends was by far the most watched game on Twitch in 2021 at over 1.3 billion hours. [SullyGnome]
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Fortnite came in second with over 350 million hours watched on Twitch in 2021. [SullyGnome]
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Counter-Strike: Global Offensive drew over 215 million hours watched on Twitch in 2021. [SullyGnome]
Clearly, certain games like League of Legends, CS:GO and Fortnite dominate in terms of professional play, viewership and revenue. But plenty of room remains for new breakout eSports titles to join the ranks.
Regional eSports Revenue
eSports has evolved into big business worldwide. But which regions currently generate the highest revenues?
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North America will produce eSports revenue of $243 million in 2021. [Newzoo]
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China‘s eSports market will generate revenue of $360.1 million in 2021. [Newzoo]
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Western Europe‘s eSports revenue is forecast at $212 million for 2021. [Newzoo]
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South Korea‘s eSports market size was over $67 million in revenue in 2020. [Deloitte]
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Japan sees yearly eSports revenues of approximately $130 million. [Business Wire]
eSports Revenue Share by Country
Source: Newzoo
As the chart shows, China, North America and South Korea generate over half of global eSports revenues.
But many other regions are seeing growth too, especially Southeast Asia, South America, and countries in the Middle East. The geographic distribution of revenues will likely shift as competitive gaming gains traction in new markets.
eSports Sponsorships
Media rights and sponsorships make up the bulk of eSports revenues. This section explores the sponsored side of the market.
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Total eSports sponsorship revenue reached $641 million in 2020 and will hit $814 million by 2023. [Business Insider]
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Mercedes Benz ramped up its eSports sponsorship spend from $235,000 in 2017 to $5.25 million in 2020. [Esports Insider]
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Red Bull invests about $35 million per year in sponsoring eSports events and teams. [Red Bull]
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The Overwatch League signed 2020 sponsorship deals worth over $90 million combined. [Esports Observer]
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G FUEL energy drink forged a 3-year, $30 million sponsorship deal with popular streamer DrLupo in 2020. [CNBC]
Biggest Non-Endemic Sponsors in eSports
Source: Influencer Marketing Hub
As the graphic shows, massive brands like Red Bull, Mercedes, and Gillette are pouring more money into eSports every year. These non-endemic sponsors see value in connecting with the industry‘s digitally savvy, young audience.
Endemic brands who make gaming gear have also been quick to embrace eSports sponsorships. For example, Logitech sponsors over 25 eSports leagues, teams and events.
Sponsorship deals will likely keep rising as more brands recognize eSports‘ marketing potential.
eSports Betting and Fantasy
eSports betting allows fans to wager real money on the outcomes of eSports matches, similar to traditional sports betting. Let‘s look at some key facts on this growing market segment:
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The eSports betting market grew from $8.37 billion in 2017 to over $12.1 billion in 2020. [Business Insider]
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It‘s forecast to expand at a +13% CAGR, reaching over $16.7 billion by 2024. [Business Insider]
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In 2020, 15% of eSports fans participated in eSports betting. [European Gaming Congress]
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Dota 2 matches generate the highest betting volume at over 35% market share. [Esports.net]
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League of Legends attracts the highest betting handle (total money wagered) at over $39 million. [Esports.net]
eSports Betting Market Size Projections
Source: Business Insider
As visualized above, the eSports betting market is on a steep growth trajectory as more jurisdictions legalize and regulate it.
The overlap between eSports fans and bettors positions eSports wagering to become a significant online gambling category, much like traditional sports betting.
Collegiate eSports
eSports is expanding beyond professional play into varsity college programs. Here‘s an overview of collegiate eSports:
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Over 170 colleges in the U.S. now offer scholarships for eSports. [NACE]
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Collegiate eSports players received $16 million in scholarships and aid for the 2020-21 season. [NACE]
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The National Association of Collegiate Esports recognizes over 200 varsity eSports programs. [NACE]
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The games most fielded by collegiate teams are League of Legends, Overwatch, Rocket League and Hearthstone. [NACE]
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85% of varsity collegiate eSports programs are co-ed (open to both men and women). [NACE]
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The average varsity eSports scholarship amount is $4,800. [NACE]
College eSports is still an emerging sector, but major growth is expected as more schools fund programs with scholarships, resources, and dedicated facilities.
The development of structured collegiate leagues mirrors the early days of varsity sports like football and basketball. It signals that eSports may be nearing mainstream acceptance similar to traditional college athletics.
Key Takeaways and Trends
In summary, the major trends and takeaways for the eSports industry in 2023 include:
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Continued double-digit growth, with the global audience expanding above 500 million in 2022.
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China, North America, Korea, and Europe generating the most revenue, but new markets picking up share.
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Games like League of Legends, CS:GO, and Fortnite leading in players, viewership hours, and tournament prize money.
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Media rights and sponsorships comprising the majority of revenue as non-endemic brands provide funding.
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Rapid growth of eSports wagering thanks to legalization efforts and audience overlap with betting.
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Collegiate eSports going mainstream with recognized varsity programs and millions in scholarships.
The past decade proves eSports is advancing globally as both big business and a cultural phenomenon. Hundreds of millions of fans now tune in to cheer on professional video game competitions as they would traditional sports.
As these updated 2023 statistics show, the dramatic recent growth of competitive gaming creates opportunities across multiple industries. Expect eSports to continue maturing into the mainstream over the next decade.
Sources
- Newzoo 2021 Global Esports & Live Streaming Market Report
- Forbes.com – "Esports Viewership Statistics For 2021"
- Statista – "eSports market revenue worldwide 2016-2024"
- StreamElements – "State of the Stream Q1 2021"
- eSports Earnings – "Overall Earnings Per Game"
- Esports Observer – “YouTube Gaming Saw Viewership Increase 15.6% in 2020, Discord Up 98%”
- SullyGnome – “Most Watched Twitch Games and Categories of 2021”
- Morning Consult – “Among Hardcore Gamers, Nearly Half Have Engaged With Esports”
- NACE – “2020-2021 High School Esports Participation Report”
- Business Insider – “Esports market size worldwide from 2018 to 2024”
- CNBC – “DrLupo signs ‘life-changing‘ deal with G Fuel”
- Influencer Marketing Hub – “Esports Sponsorships: The Key Brands Involved”
