Esports Market to reach USD 13.42 billion by 2032

The global esports market, which is expected to be valued at USD 3.49 billion in 2025, is on a trajectory of rapid expansion. Projections indicate a USD 13.42 billion valuation by 2032, exhibiting a CAGR of 21.2% during the forecast period. The esports market growth can be attributed to the rising popularity of competitive gaming, increased funding from sponsors, and media rights. Additionally, the growing adoption of various streaming platforms across the globe are fueling market expansion.

Key Market Insights

The expansion of esports infrastructure, including dedicated arenas and training facilities, along with advancements in virtual reality and cloud gaming, is boosting the esports market value.

By revenue source, the media rights segment is expected to lead the esports market, with a market share of around 34.9% by 2025. This expansion is mainly attributed to the rising commercialization of esports events and growing investments from streaming platforms. Moreover, increasing viewership on digital channels is also fueling the segment's growth.
In terms of region, North America is projected to lead the market, accounting for 38.7% of the total market share in 2025. This dominance is driven by the presence of major esports organizations and a well-established gaming infrastructure. Additionally, increasing sponsorship deals and high consumer spending on gaming and digital entertainment in countries like the U.S. and Canada are further driving the market expansion.

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Esports Market Report Coverage

Report Coverage	Details
Market Revenue in 2025	USD 3.49 billion
Estimated Value by 2032	USD 13.42 billion
Growth Rate	21.2%
Historical Data	2020–2024
Forecast Period	2025–2032
Forecast Units	Value (USD billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Revenue
Geographies Covered	North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Growth Drivers	· Emergence of Streaming Platforms · Expanding Prize Pools and Sponsorships
Restraints & Challenges	· Health Concerns Associated with Esports Due to Long Gaming Hours · Difficulty in Correctly Predicting Potential Esports Talent and Events

Market Dynamics

The esports market is growing at a fast pace owing to increasing digital engagement, rising investments from major brands, and expanding esports viewership. The increasing use of high-speed internet, the spread of gaming platforms, and the mainstream popularity of competitive gaming as a professional is further driving the market. For instance, on March 16, 2025, Riot Games announced a prize pool of US$ 5 million for the League of Legends (LoL) World Championship 2025, more than double the US$ 2.225 million prize money of 2024. The announcement, confirmed by Mr. Chris Greeley, global head of LoL Esports, ahead of the First Stand Tournament finals, reflects the increasing financial commitment to esports and its growing prominence in the entertainment industry.

Also, the integration of modern technologies such as virtual reality (VR), artificial intelligence (AI)-driven analytics, and Blockchain-enabled gaming assets is redefining the competitive gaming experience. Esports companies and tournament promoters are employing data analytics, immersive gaming experiences, and fan engagement tools to enhance viewer engagement and optimize player performance.

Market Trends

Rise of Esports as a Mainstream Entertainment Industry

Esports has grown beyond just competitive gaming to become the leading entertainment industry, surpassing traditional media industries such as movies and music. With video gaming becoming a core part of modern entertainment culture, esports leagues, live-streaming platforms, and digital content creation are driving substantial audience engagement and revenue growth. For example, according to the Pew Research Center (2024), at least 85% of U.S. teens report playing video games, highlighting the deep-rooted presence of gaming in youth culture.

Expansion of Esports Facilities and Competitive Ecosystems

With growing demand for organized gaming arenas and professional-level training, the growth of premium gaming lounges, university esports programs, and competitive ecosystems has increased. Such venues provide gamers the access to top-class gaming rigs, training equipment, and collegiate tournaments, bridging the divide between casual gaming and pro esports.

For instance, OHIO Esports offers a state-of-the-art gaming lounge and a competitive structure, ranging from casual gaming groups to a 40-member varsity team competing in the Mid-American Conference (MAC). With over 800 active members, the program extends beyond competition, emphasizing skill development, community engagement, and career opportunities within the gaming industry.

Market Opportunities

Expansion of Mobile Esports in Emerging Markets

Emerging markets, particularly in Southeast Asia, Latin America, and the Middle East, are witnessing a surge in mobile esports due to increasing smartphone penetration and affordable internet access. With the popularity of mobile games increasing, competitive gaming communities are growing rapidly and providing lucrative opportunities for tournament organizers, sponsors, and game developers.

Globally, mobile esports games have gained significant popularity in recent years. For example, Mobile Legends: Bang Bang reached a peak of 1.7 million viewers during the Indonesia Season 15 of the IPL in 2025. Similarly, Honor of Kings offered prize pools exceeding US$ 20 million last year, with its 2025 Invitational Season 3 attracting a peak audience of over 380,000 viewers.

Rise of AI-Driven Esports Training and Analytics

The integration of artificial intelligence (AI) in esports training and performance analytics is revolutionizing how players improve their skills. AI-powered tools offer real-time game analysis, strategic recommendations, and personalized training regimens to help professional and amateur players refine their gameplay.

In January 2025, gaming peripherals brand, Razer, introduced Project AVA, an AI-powered esports coach designed to deliver real-time insights and analysis. Unveiled at CES 2025, Razer describes Project AVA as "the ultimate AI gaming copilot," aiming to enhance player performance through advanced data-driven coaching.

Analyst’s View

“The esports market is poised for exponential growth, fueled by increasing digital engagement, expanding sponsorship investments, and the mainstream adoption of competitive gaming,” said Ankur Rai, an analyst. “The rapid expansion of media rights, which is projected to dominate the revenue landscape, reflects the growing commercialization of esports tournaments and the surge in streaming viewership across digital platforms.

Additionally, advancements in artificial intelligence-driven analytics, cloud gaming, and virtual reality are revolutionizing player performance optimization and audience engagement. The rise of mobile esports, particularly in emerging markets, such as Southeast Asia and Latin America, is further accelerating industry expansion. With the proliferation of professional gaming infrastructure, corporate sponsorships, and AI-powered training solutions, the esports sector is set to redefine the future of interactive entertainment and digital sports.”

Recent Developments

On March 25, 2025, SEKUYA EVOS RACING was officially introduced at the Parade Satu event hosted by EVOS Esports, one of the largest gaming and entertainment organizations in Southeast Asia. This racing team is the result of a collaboration between Sekuya and EVOS Esports, bringing a new concept to life: gamer to racer, in line with the Indonesia Legends program supported by the Ministry of Creative Economy (Kemenekraf).
In February 2023, Microsoft and NVIDIA announced a 10-year partnership to bring Xbox PC games to the NVIDIA GeForce NOW cloud gaming service, which has more than 25 million members in over 100 countries. The agreement has enabled gamers to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones and other devices. It will also enable Activision Blizzard PC titles, such as Call of Duty, to be streamed on GeForce NOW after Microsoft’s acquisition of Activision closes.

Competitive Insights