In a short period of time, Southeast Asia has become the global epicenter of the professional gaming industry, attracting leading sponsors to an eSports market that is expected to nearly double in size by the middle of the decade.
According to Dutch research firm Newzoo, Southeast Asia is the fastest growing eSports market in the world. The market is expected to grow from $39.2 million in 2021 to $72.5 million in 2024.
In Southeast Asia, the eSports market is experiencing tremendous growth, with soaring revenues, a significant user base, and lucrative sponsorship and advertising opportunities. As eSports continues to captivate audiences around the world, it is poised to become a major force in the entertainment and gaming industry, shaping the future of competitive gaming. The eSports market in ASEAN is booming and its revenues are expected to skyrocket in the coming years.
Statista's April report on eSports in ASEAN states that the eSports market revenue will reach US$42.67 million by 2023. This is just the beginning, as experts predict an annual growth rate of 10.70% between 2023 and 2027, resulting in a projected market volume of US$64.07 million by the end of this period.
In terms of revenue sources, sponsorship & advertising leads the way in the eSports market. With a market volume of US$14.45 million by 2023, this sector holds the largest share. This is not surprising given the immense popularity of eSports and the vast opportunities for brands and advertisers to reach a highly engaged and passionate audience.
Opportunities and Challenges
While 2021 and 2022 saw a crypto crash and an increase in fraud and hacking cases affecting blockchain gaming, this did not stop the growth of eSports in Southeast Asia. In fact, the region is expected to continue to develop as a major developer hub and market for blockchain gamers, with an increasingly positive outlook through 2024. This shows that eSports is a growing industry and offers great business opportunities for game developers in Southeast Asia.
On the other hand, while there are many opportunities for eSports businesses in Asia, the market is also highly competitive. Therefore, maintaining a profitable eSports business in this fragmented region requires deep insights into value creation and diversification to generate effective growth.
Statista. (2023). Advertising & Media Market Insight: eSport - ASEAN
Niko Partners. (2023). Niko’s Game Industry Predictions for Asia and MENA Markets in 2023
Ito, Takeru, et al. (2022). Southeast Asia’s Red-hot eSport Scene Draws Global Brands as Sponsors. Nikkei Asia