Report Summary
The esports industry in the US is currently being shaped by many factors including economic changes, evolving market trends, and technological advancements. Despite financial challenges, such as reduced sponsorships and the cessation of the Overwatch League, the global video game market is projected to grow, with mobile and PC gaming leading the charge. Consumer engagement with esports remains concentrated among younger demographics, including parents, signaling untapped potential for family-friendly marketing strategies. AI and VR technologies are poised to revolutionize the gaming experience, although cost barriers persist. Brands have significant opportunities to connect with the esports audience through inclusivity and innovative product integrations, especially in local events.
This report looks at the following areas:
- Financial challenges, new opportunities, and trends in the esports industry
- Esports viewership engagement and how it’s changed over time
- What motivates individuals to start watching esports
- How esports viewers participate in the broader community
- How traditional sports compare to esports viewership
- Potential benefits and challenges for AI and VR in the future of esports
- Brand and marketing opportunities in the evolving esports landscape
Esports is undergoing a radical evolution, with major entities, players, and leagues in a state of flux, but Olympic esports is set for 2025.
Brian Benway, Senior Tech and Gaming Analyst
Market Definitions
For the purposes of this Report, Mintel defines video games as electronic games played on dedicated consoles, computers, and mobile devices. Advertising in gaming consists of in-game ads as well as ads about gaming in other media (eg social media, video game websites).
Table of Contents
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Executive Summary
- What you need to know
- Global video game market size
- Collabs and partnerships may boost appeal
- Esports draw young fans for teams and players, and older fans to learn
- Men prefer watching traditional sports, women are more open to change
- Gamers are optimistic for future esports with VR and AI
- Market predictions
- Opportunities
-
Market Dynamics
- Market context
- The US expanded by 1.4% in Q1 2024
- Graph 1: quarterly real GDP growth, 2020-24
- Annual inflation sits at 2.9% as of July, the lowest it has been since March 2021
- Graph 2: headline CPI and shelter CPI, 2021-24
- Consumer sentiment remains down, but is expected to rebound soon
- Graph 3: consumer sentiment index, 2022-24
- Nearly 40% of consumers have seen their financial situations change for the better in the past year
- Graph 4: change in financial situation over the past 12 months, 2024
- Households' growth in finances has primarily been driven by salary gains
- Graph 5: income growth over the past 12 months, by change in financial situation, 2024
- Market overview
- Global video gaming revenue is forecasted for slow and steady growth of 3.1%
- Graph 6: global video game industry revenue, 2019-26
- 2.1% year-on-year growth, console declines while PC and mobile grow
- Graph 7: global video game industry revenue share (% billions), by device, 2024
- Market drivers
- 2024 has been a very hard year financially for many in esports
- The future of esports is now in Saudi Arabian hands, for better or worse
- EVO 2024 broke the unique competitor record
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Consumer Insights
- Consumer fast facts
- Esports engagement
- Esports represents a loyal subset of gamers, but not everyone is a fan
- Graph 8: esports engagement past six months, 2024
- Not doom and gloom, support shows growth over last year
- Graph 9: esports engagement past six months, 2023-24
- 2023 vs 2024 esports engagement show a gender based divergence of interests between men and women
- Graph 10: esports engagement past six months by men, by age, 2023-24
- Graph 11: esports engagement past six months by women, by age, 2023-24
- Competition requires commitment and loyalty of its participants
- Graph 12: attitudes towards growth of esports (% agree), 2024
- Viewers are players, and esports isn't aligned with games older gamers play
- Graph 13: esports engagement past six months, by age, 2024
- Watching others play is a part of life for many 18-54 year old gamers
- Graph 14: watched online streams of people playing video games (excluding esports) in past six months, by age and gender, 2024
- Graph 15: watched online streams of esports (ie professional video game competitions) in past six months, by age and gender, 2024
- Attending events in-person requires personal commitment to esports
- Graph 16: attended an in-person gaming event (excluding esports) in past six months, by age and gender, 2024
- Graph 17: attended an in-person esports event (ie professional video game competitions) in past six months, by age and gender, 2024
- Esports is a step up from video game enjoyment, highlight support and passion
- Graph 18: purchased esports related merchandise (ie items related to esports players/teams) in past six months, by age and gender, 2024
- Removing toxicity can help reinforce the family friendly appeal for esports
- Graph 19: esports engagement past six months, by parental status, 2024
- Mom is pro esports, which may lead to more women players
- Graph 20: esports engagement past six months, moms vs dads, 2024
- Hispanic gamers are very casually invested, but need personal motivation or frictionless experiences
- Graph 21: esports engagement past six months, Hispanic consumers vs overall, 2024
- Esports games preferences
- Brands may have a big part to play in the gaming popularity contest
- Graph 22: games watched people playing online or in-person in the past six months, including esports events, 2024
- While male viewership tends to lead, brands need to consider both audiences
- Graph 23: games watched people playing online or in-person in the past six months, including esports events, by gender, 2024
- Call of Duty currently catches the most gamers of any age, but broad viewership opportunities abound in esports
- Graph 24: games watched people playing online or in-person in the past six months, including esports events, by age, 2024
- If esports viewership is any indication, DEI and culture initiatives at Activision-Blizzard may be paying off
- Graph 25: games (select) watched people playing online or in-person in the past six months, including esports events, by race, 2024
- Esports entry points and inspiration
- The esports pipeline: play, watch, connect, and engage
- Graph 26: I started watching other people play games, including esports…, 2024
- Connecting at a local level helps build bridges within the esports community
- Graph 27: purchasing related attitudes towards esports (% agree), 2024
- The motivations for watching esports remain very consistent
- Graph 28: I started watching other people play games, including esports…, 2023-24
- Most watch others playing games for the same reasons, regardless of age or gender
- Graph 29: I started watching other people play games, including esports…, by age, 2024
- Traditional sports engagement
- Esports have to be different from traditional sports to stand out
- Graph 30: preference for watching traditional sports over esports, 2024
- Turning sports fans to esports fans may be a hard sell, but women might be more open to new options
- Graph 31: preference for esports over traditional sports, by gender, 2024
- Each traditional sport has it's own unique fanbase with their own tastes
- Graph 32: preference for esports over traditional sports, by age, 2024
- Esports community participation
- Almost every individual who watches esports interacts with the community
- Graph 33: esports community participation, 2024
- Wagering on esports events doesn't have high engagement, but has popular support
- Graph 34: betting on esports events or matches makes watching more fun as a spectator (% agree), by demographics, 2024
- Men and women fans are also equally connected to esports communities
- Graph 35: esports community participation, by gender, 2024
- Attitudes towards VR in esports
- VR in esports is still growing, but fans think it's the future
- Graph 36: attitudes towards VR and esports (% agree), 2024
- It's expected that VR gamers would support VR esports, but not casuals
- Graph 37: attitudes towards VR and esports (% agree), by gamer segments – device and frequency, 2024
- PSVR2 receives a limited-time $200 discount one year out the gate
- Attitudes towards AI in esports
- Players hope that AI can make gaming a more fair competition
- Graph 38: "I would be happy to purchase a game that used AI to detect and prevent cheating in multiplayer matches" (% agree), 2024
- New AI powered cheat enabled keyboards and monitors will make competitive gaming a nightmare for players and tournament orgs
- Gamers aren't against AI, they want AI to prevent cheating, not enable it
- Graph 39: "I would be happy to purchase a game that used AI to detect and prevent cheating in multiplayer matches", by gamer segments – motivation, 2024
- Is the current surge in AI interest sustainable or just a passing trend in gaming?
- SAG-AFTRA guild on gaming strike for fair wages and AI protection
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Innovation and Marketing Trends
- Launch activity and innovation
- Marvel rivals stepping up to take Overwatch's place
- More Marvel news and a scream of joy felt across the fighting game community
- Microsoft seems poised to stop playing the physical console game
- Marketing and advertising
- Kellogg's Canada encourages gamers to go outside and touch grass
- Women of Columbian esports offer tips and tricks
- Grey Colombia limited edition Pringles can audio kit
- Translating gaming fun to real world excitement
- Defy age limitations in esports
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Appendix
- Consumer research questions
- Market definition
- Consumer research methodology
- Consumer qualitative research methodology
- Generations
- Abbreviations and terms
- The consumer
- Gaming device usage – NET
- Graph 40: gaming device usage, 2024
- Gaming console brand usage
- Graph 41: gaming console brand usage, 2024
- Gaming frequency – NET
- Graph 42: gaming frequency, 2024
- Mintel gamer segments – motivations
- Top gaming motivations – NET – any rank
- Graph 43: top gaming motivations – NET – any rank, 2024
- Mintel gamer segments – motivations
- Graph 44: Mintel gamer segments – motivations, 2024
- Gamer segments – Achievers and Explorers
- Gamer segments – Socializers and Competitors
- Mintel gamer segments – device and frequency
- Graph 45: Mintel gamer segments – device and frequency, 2024
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