How Big Is The Esports Industry?
If you’ve spent any time around teenagers lately, you’ve probably heard the term “esports” buzzing about. Perhaps you’ve wondered exactly how big this competitive video gaming scene really is. Are esports just another teenage fad, or is there more to the story? This article will dive into the global scale and impact of esports, offering a balanced look at its economic growth, audience reach, and significance here in New Zealand.
What Exactly is Esports?
First things first, esports refers to competitive, organised video gaming. Players form teams, compete in tournaments, and, just like traditional sports, can even earn salaries, sponsorships, and fan followings. Popular esports titles include games like League of Legends, Dota 2, and Fortnite, each attracting millions of dedicated viewers worldwide.
If you’re looking for a deeper understanding of what esports is, check out our detailed article ‘What is Esports’ that break it down further.
Global Market Size and Rapid Growth
The global esports market isn’t just big, it’s booming. According to recent industry reports, esports revenue reached approximately USD $1.96 billion in 2023, and this number is projected to climb sharply to around USD $5.17 billion by 2029 (Arizton, 2023). This explosive growth comes from a blend of factors, including increased access to high-speed internet, more people playing and watching online games, and large-scale investment from advertisers keen to reach younger audiences (Fortune Business Insights, 2025).
Different reports sometimes provide varying estimates due to how they define esports markets and their methodologies. Precedence Research (2023), for instance, offers an even more ambitious projection, suggesting the market could reach approximately USD $48 billion by 2034. Despite these variations, one thing is clear: esports isn’t going anywhere anytime soon.
How Do Esports Make Money?
Esports has multiple revenue streams, mirroring traditional sports and entertainment industries. Here’s how that breaks down:
Sponsorship and Advertising: Brands are increasingly interested in esports because it offers direct access to a young, tech-savvy audience. Big companies like Intel, Red Bull, and Coca-Cola sponsor events and teams.
Media Rights: Broadcasting deals with streaming platforms like Twitch and YouTube generate significant revenue, similar to TV rights in traditional sports.
Merchandise and Event Tickets: Selling team merchandise, accessories, and tickets to major events adds a considerable revenue stream.
Publisher Fees: Game developers frequently organise their own tournaments and make money through entry fees and in-game purchases.
Esports Around the Globe: Regional Differences
Esports has reached nearly every corner of the globe, though each region experiences growth differently:
North America: Leads the market share, accounting for nearly half the global esports revenue (Arizton, 2023).
Asia-Pacific: Countries like China and South Korea are powerhouse markets, driven by huge player populations and strong governmental support (ASO World, 2023).
Europe: Europe maintains steady growth, with esports firmly embedded in popular culture and events drawing massive audiences.
Emerging Regions: In places like Africa, esports is rapidly developing, but faces infrastructure challenges, particularly with reliable internet connections (The Guardian, 2024).
Audience and Viewership Trends
Esports viewership is impressive, rivaling traditional sporting events. Globally, esports had around 574 million viewers in 2023, expected to rise to about 641 million by 2025 (ASO World, 2023). Major events regularly fill stadiums and attract millions of viewers online, showcasing the sport’s mainstream appeal.
Esports Scene in Aotearoa New Zealand
Here at home, esports is steadily gaining ground. Kiwi players compete on the international stage, and organisations like the New Zealand Esports Federation (NZESF) help to develop a structured environment for local esports communities, ensuring Kiwi youth can participate safely and responsibly.
New Zealand esports events are drawing increasing local interest, with initiatives in schools creating opportunities for young Kiwis to participate competitively—echoing the supportive environments familiar in traditional school sports.
Challenges Within the Industry
However, like any rapidly expanding industry, esports faces significant hurdles:
Infrastructure Limitations: Reliable, high-speed internet is essential, yet many regions still lack the necessary infrastructure.
Financial Sustainability: Securing consistent sponsorships and funding can be challenging, especially for smaller markets or emerging teams.
Regulation and Player Welfare: The absence of a unified global regulatory body leads to inconsistent standards and can impact player welfare and career longevity.
Inclusivity and Diversity: Esports, like many sectors, continues to tackle issues of representation and inclusivity to ensure opportunities are equitable.
Looking Ahead: The Future of Esports
The future of esports appears robust, with ongoing technological advancements like virtual and augmented reality promising to enrich the gaming experience. As traditional sports organisations and educational institutions integrate esports into their programs, more professional pathways and career opportunities are likely to develop.
Practical Tips for Kiwi Parents and Whānau
Given the growing importance of esports, Kiwi parents might consider how best to support and manage their children’s involvement. Here are some practical steps to help balance gaming with overall wellbeing:
Open Dialogue: Regularly talk about what games your child plays, and why they enjoy them.
Set Clear Limits: Establish reasonable gaming time to ensure a balanced lifestyle, just as you would for TV or social media.
Focus on Safety: Educate your child about online safety, healthy social interactions, and responsible digital citizenship.
Encourage Balanced Interests: Promote other activities alongside gaming to ensure a well-rounded development.
Stay Informed: Keeping yourself informed about trends in esports will help you better support your child’s interests and navigate potential challenges.
Conclusion
The esports industry is large, diverse, and growing rapidly. From global tournaments watched by millions to grassroots competitions here in New Zealand, esports has emerged as a significant player in the world of competitive entertainment. Understanding its scale, challenges, and opportunities can empower parents, educators, and communities to better engage with and support young people’s healthy participation.
References
- Arizton. (2023). Global Esports Market Report. Retrieved from https://www.arizton.com/market-reports/esports-market-report
- ASO World. (2023). Global Esports Market Report 2024. Retrieved from https://asoworld.com/blog/global-esports-market-report-2024/
- Fortune Business Insights. (2025). Esports Market Size, Share & COVID-19 Impact Analysis. Retrieved from https://www.fortunebusinessinsights.com/esports-market-106820
- New Zealand Esports Federation (NZESF). (n.d.). Retrieved from https://www.nzesf.org.nz
- Precedence Research. (2023). Esports Market Forecast. Retrieved from https://www.precedenceresearch.com/esports-market
- The Guardian. (2024). Esports Are Booming in Africa but Infrastructure Lags Behind. Retrieved from https://www.theguardian.com/sport/2024/dec/20/esports-are-booming-in-africa-but-can-its-infrastructure-keep-pace