2024 is shaping up to be another strong year for the Esports industry. According to NoKyc.com, the industry is projected to generate $1.81 billion in revenue this year, reflecting an annual growth rate of over 11%.
Annual revenue projected to reach $2.34 billion by 2028
The future looks bright for the Esports industry, with 2024 set to be a particularly exciting year, highlighted by the first-ever World Cup for the Esports community. This year is also expected to see substantial growth.
According to the latest Statista Market report, the Esports industry is projected to generate $1.81 billion in revenue this year, marking an 11.04% increase from the $1.63 billion earned in 2023.
Having fully rebounded from the pandemic’s impact, the industry is anticipated to maintain a robust growth trajectory. Revenue is forecasted to rise by 9.4% to $1.98 billion in 2025 and is expected to surpass $2 billion in 2026—a milestone achieved five years after the industry first broke the billion-dollar mark in 2021.
Looking further ahead, the report suggests that Esports revenue will reach $2.34 billion by 2028.
Sponsorship and advertising contribute more than half of Esports revenue
When examining the revenue distribution across the Esports industry, it becomes clear that sponsorships and advertising are the primary sources of income. For the year 2024, the industry is projected to generate $0.98 billion from these channels, which accounts for 54.1% of the total annual revenue.
In addition to sponsorships and advertising, Media Rights are anticipated to contribute an additional $0.32 billion, representing 17.7% of the overall revenue. This segment of revenue reflects the growing value and importance of broadcasting and digital media rights in the industry.
Merchandise and Ticketing are also significant revenue streams, with an expected contribution of $0.24 billion, or 13.3% of the total revenue. This category encompasses income from branded merchandise and event tickets, highlighting the direct consumer engagement within the industry.
Streaming revenues are projected to reach $0.13 billion, accounting for 7.2% of the overall revenue. This reflects the growing role of live streaming platforms and their monetization in the Esports ecosystem.
Lastly, Publisher Fees are expected to bring in $0.14 billion, making up 7.7% of the total revenue. These fees are associated with the costs and licensing fees charged by game publishers for their titles being featured in Esports competitions and events.
Together, these revenue streams paint a comprehensive picture of the financial landscape of the Esports industry for 2024, demonstrating a diverse and multifaceted revenue model.