US Esports Market: Industry Analysis and Forecast (2024-2030)

US Esports Market Overview

The comprehensive report serves as a detailed analysis of the US Esports Market. STELLAR has precisely examined the industry's evolution, spotlighting significant trends, groundbreaking innovations, and the driving forces that mold its trajectory. Delving deep into the present landscape, the report dissects the US Esports Market. It accurately outlines the market's current dimensions, growth patterns, size, and the nuanced trends that use significant influence. Additionally, it keenly identifies the pivotal factors driving market growth and sheds light on growing opportunities.

• Sponsorships, set to reach $730.4 million by 2024, lead esports revenue.
• Advertising is a growing segment, projected to reach $300.2 million in 2024.
• Media rights involve lucrative broadcasting deals with platforms like Twitch and YouTube.
• Live events drive revenue through ticket sales and merchandise

The US Esports industry growth drives the increase in advertising as well and lucrative broadcasting deals with platforms such as Twitch and YouTube are part of media rights. Popular live events generate revenue through ticket and merchandise sales. In-game purchases, despite scrutiny, contribute via microtransactions and loot boxes. Also, dominant games such as League of Legends, rising star Valorant, and established Overwatch drive the industry. The annual League of Legends World Championship, boasting massive global viewership, stands out as a key event.

Growing Popularity and Viewership Drives the US Esports Market

The US esports market rose by generating $1.25 billion with 20% growth and creating 187,000 jobs. Initiatives such as the League of Legends College Scholarship Program underscore esports' role in STEM skill development. The League of Legends World Championship surpassed traditional sports viewership, attracting 70 million peak viewers globally in 2023. Platforms like Discord and Twitch connect millions of fans, with esports averaging 8 million concurrent viewers on Twitch in 2023. Professional esports organizations like Evil Geniuses reported substantial revenue, showcasing the growing viability of esports careers.

In 2023, the Stellar revealed that 20% of gamers face gaming addiction risks. Initiatives like Dr. DisRespect's "Healthy Gamer" provide education and support. Women, constituting 25% of esports viewers and fewer players, are targeted by events such as the Women's VALORANT Champions Tour to boost participation. The 2023 League of Legends Players Association advocates for player rights, addressing burnout and unfair contracts. A 2023 Pew Research Center survey found that 39% of Americans consider video games "a waste of time," emphasizing the need for educational campaigns to shift perceptions. In-game loot boxes and skin betting pose gambling risks, especially for minors, additionally, stricter regulations and age verification, as in certain European countries, are essential safeguards.

US Esports Market Segment Analysis

Based on Type, the Hardcore Gamers segment held the largest market share of about 35% in the US Esports Market in 2023. According to the STELLAR analysis, the segment is expected to grow at a CAGR of 21.5% during the forecast period. It stands out as the dominant segment within the US Esports Market thanks to its rapid technological advancement and growing adoption of smart devices with data connectivity and integration.

The hardcore gaming community, as passionate viewers and consumers, plays a pivotal role in the US esports industry. Dedicated fans actively boost tournament viewership, driving revenue through in-game purchases and subscriptions. As community builders, they actively shape discussions on social media, influencing game development and marketing. Also, early adopters actively drive innovation, embracing new games and technologies, while their competitive talent actively fuels the excitement of major tournaments.

Insular and exclusionary, some hardcore gaming communities hinder US sports market growth. Toxic behavior, including harassment, damages the image and alienates potential fans. High expectations and criticism from hardcore gamers create negativity, impacting public perception and industry relationships. Burnout and churn in the intense gaming scene disrupt the stability of esports leagues and tournaments.

To optimize the influence of hardcore gamers and manage challenges, the US esports industry promotes inclusivity, addresses toxicity, and engages with gamers. Transparency, communication, and catering to diverse interests build trust and expand the esports audience while fostering a welcoming environment.

Leading Key Players in the US Esports Market

• Activision Blizzard, Inc.
• Electronic Arts Inc. (EA)
• Riot Games
• Twitch (Amazon)
• Cloud9
• Team SoloMid (TSM)
• FaZe Clan
• Envy Gaming
• ESL (Electronic Sports League)
• DreamHack