League of Legends, Counter-Strike, Dota 2, and Fortnite, these have quickly grown from a small hobby to a global entertainment behemoth, with a market size of about 5 billion dollars. How did the esport trend evolve into where it is today and what can we expect from it in the coming years?

In Esports, top players like Johan Sundstein (N0tail) lead with nearly $7.18 million in Dota 2 profits, followed by Jesse Vainikka (JerAx) at $6.49 million, and Sasha Hostyn (Scarlett) leads female earners with $465,500. League of Legends leads games, with 6.4 million peak viewers in 2023, trailing only Dota 2's $346 million prize money. The esports market, valued at $1.64 billion in 2023, is expected to increase at an annual rate of 18.7%, with mobile gaming accounting for 52% of the market in Asia. Let's learn more about Esports!

What is Esports?

League of Legends, Counter-Strike: Global Offensive, Dota 2, and Fortnite have all become synonymous with Esports, with enormous prize pools attracting professional players and global audiences. From Console, to Computer or Mobile Gaming Esports amounts for a market share equal to 5 billion dollars according to Statista in 2025 with projections for 2029 appointing the industry to be worth around 6 billion dollars.

The primary purpose of Esports is to promote competitive play while also extending its popularity as a mainstream form of entertainment. For players, success in Esports means winning events, securing sponsorships, and establishing professional careers. The ultimate draw of the sport is the possibility to achieve global notoriety, as many top players are now considered superstars in their gaming communities.

Esports is competitive video gaming at the professional level, in which individuals or teams compete in tournaments using popular video games. These games fall across several genres, including real-time strategy (RTS), multiplayer online battle arenas (MOBAs), first-person shooters (FPS), and even sports simulations. 

Esports’ massive success is linked to its reach throughout many platforms, as the Industry has sought to capitalize on viewers through many types of media such as: 

Social Media and Gaming Streaming Platforms - Like the likes of YouTube Gaming, Kick or Twitch, giving fans the possibility to view live esports competitions through the click of a button.
Conventional TV and Streaming Platforms - Companies like Netflix or Amazon have expressed their desire to expand into Esports and Gaming, offering fans customized experiences from shows covering Esports player & Teams to whole tournaments or Games. Esports is also present on TV through channels such as Ginx Esports TV, BIGG TV, and ESTV.
News and Digital Information available - Esports stands out as many resources about the sport are available on the internet, via websites like riotesportsdata, panda score or Sportsabc. 

All of this allows fans from all over the world to tune in, watch, learn and participate in these events. As such it is inevitable to ignore that Esports are more than just playing games; it is an ecosystem with teams, sponsors, and fans all contributing to the sector's growth.

How did it grow into what we now have today?

Esports began in the 1970s as tiny, informal gaming competitions and expanded significantly during the 1990s, particularly with games such as Street Fighter and Quake. South Korea became a competitive gaming hub in the late 1990s and early 2000s, thanks in large part to the success of StarCraft. The rise of online play and broadband internet in the 2000s enabled worldwide competition, and big events such as the World Cyber Games attracted international interest.

By the 2010s, websites such as Twitch and YouTube Gaming had made esports more accessible, attracting millions of fans. Today, Esports has grown into a multibillion-dollar industry, with high-profile events like The International (Dota 2) and League of Legends World Championship offering large prize pools. Corporate sponsorships and mainstream media coverage have aided Esports' growth, and the future looks promising with new potential in mobile gaming and traditional sports club collaborations.

What are some key goals for this industry?

The industry's goal is to build a sustainable Esports ecosystem. This includes using a variety of money streams such as sponsorships, media rights, advertising, and merchandising. 

According to InnoBytech, esports sponsorships alone are estimated to generate roughly $800 million in 2023. Major firms such as Intel, Red Bull, and Coca-Cola have made significant investments in Esports, realising the sector's potential to attract younger, tech-savvy consumers.

Furthermore, Esports provides a platform for brand activation. Sponsors are increasingly realising the power of Esports to interact with their target demographics on a personal level, including direct ads and influencer relationships. As Esports grows, the goal is not simply to profit, but also to inspire new generations of players and push the frontiers of gaming culture.

How does Esports look now?

Currently, Esports is seeing significant expansion, with both its audience and revenue streams rising at unprecedented rates. According to Deloitte, the worldwide Esports audience will top 500 million by 2020, and the figure is expected to climb further. With additional games getting competitive traction and new events launching on a regular basis, Esports is becoming more integrated into the global entertainment industry.

Key Esports competitions, such as The International (Dota 2) and the League of Legends World Championship, draw millions of fans worldwide, both online and in person. These tournaments, which are frequently televised on major streaming platforms, earn millions of dollars in revenue, confirming Esports' commercial viability. For instance, The International typically has prize pools in excess of $40 million, which are mostly funded by crowdsourcing, demonstrating the level of fan engagement.

Esports clubs have adopted a structure similar to traditional sports franchises. Teams such as Cloud9, FaZe Clan, and Team Liquid not only play in international competitions, but also use content creation, commercial sponsorships, and social media interaction to grow their fan bases. These teams use professional management, marketing, and strategic planning, making them formidable competitors in both the Esports and commercial worlds.

Furthermore, Esports is becoming more interwoven into the educational landscape, with colleges providing scholarships and academic degrees in Esports management and content development. This establishes Esports as a professional and legitimate career option.

Impact on the Entertainment Industry: How Esports is reshaping the landscape

Esports has revolutionised the entertainment sector by providing new avenues for fans to consume content. Unlike traditional sports, where viewing is confined to television broadcasts or in-person attendance, Esports allows spectators to participate in competitions via live stream, on-demand content, and social media platforms. The interactive aspect of these platforms enables fans to communicate with teams, players, and other viewers, resulting in a social experience centred around the event.

Streaming platforms like Twitch and YouTube Gaming have grown integral to the Esports ecosystem. These platforms enable spectators to watch live tournaments, engage in debates, and cheer on their favourite players. This level of participation is critical to Esports' appeal since it produces a one-of-a-kind fan experience. According to Tencent, Esports' success can be linked to its accessibility, which allows fans to consume material on their own terms and at their own pace.

Esports' growth is heavily influenced by sponsorships and marketing. Brands are keen to reach Esports' highly engaged audience, resulting in significant investments in team sponsorships, event partnerships, and influencer collaborations. According to InnoBytech, by 2023, Esports sponsorships will be worth over $800 million. This highlights how Esports has become an important channel for brands looking to reach younger audiences. Red Bull, for example, has established its own Esports leagues, and Intel sponsors the internationally renowned Intel Extreme Masters.

Esports' influence has spread beyond the digital domain and is now prevalent in mainstream culture. Major media outlets such as ESPN and Fox Sports are airing Esports tournaments, bringing the competitive gaming experience to homes all over the world. This cultural convergence has hastened Esports' evolution from a subculture to a mainstream phenomenon.

Current economic model: The business of Esports

Esports' economic model is complex, with multiple revenue sources. Esports organisations are important to this approach, as they handle professional teams and individuals. These organisations play an important role in shaping competitive play and generating cash through sponsorships, broadcast rights, ticket sales, and merchandise, some of the most important sources of revenue are the following:

Sponsorships and Advertisement - they remain the key source of revenue for Esports. According to InnoBytech, sponsorships in 2023 are predicted to produce $800 million. The engagement of big firms such as Intel, Coca-Cola, and Red Bull emphasises the importance of these collaborations. These sponsorships go beyond event branding and include team management, content development, and product placements, which integrate brands directly into the content.

Broadcasting and Media rights - Further increasing their influence over the sport, it is becoming an increasingly important revenue source. Esports groups sell broadcasting rights to streaming sites like Twitch, YouTube, and Facebook Gaming, who pay hefty fees to acquire exclusive rights to major tournaments. According to Analytics Insight, the value of Esports broadcasting rights will exceed $200 million globally by 2020.

Merchandising & Fan Items - A sector which also makes a substantial contribution to Esports event revenues. Fans buy club shirts, gaming gadgets, and collectibles, resulting in a lucrative merchandising sector. This feature, along with ticket sales for live events, is growing as Esports establishes itself in the entertainment industry.

The future of Esports: Forecasts and strategic routes

The future of Esports is one of constant expansion, with predictions estimating that the business will generate more than $1.5 billion by 2023. According to Statista, Esports will reach over 600 million people by 2024, cementing its position as one of the world's most popular forms of entertainment.

Technological innovation, regional expansion, and collaboration with traditional sports are all important strategic paths for Esports' future success. Technological improvements in virtual reality (VR) and augmented reality (AR) may improve the immersive experience of Esports, while mobile gaming will continue to broaden Esports' reach, particularly in Asia and Latin America. According to Deloitte, AI and machine learning will play an important role in personalising spectators' viewing experiences and improving players' gameplay techniques.

Furthermore, Esports will expand globally, with new markets opening in Africa, the Middle East, and Asia. Tencent emphasises the importance of tailored content and regional leagues to meet the needs of diverse audiences. Partnerships with established sports leagues, such as the NBA and NFL, will also assist to broaden the popularity of Esports by using current sports infrastructure to reach new audiences.

The advent of NFTs and virtual products will also bring new revenue streams for Esports, allowing fans unique experiences and mementos related to their favourite games or players. These advancements will enable Esports to further monetise fan involvement while also opening up new markets for companies and sponsors.