The eSports industry has seen explosive growth in recent years. It isn’t expected to slow down anytime soon.
The global eSports market could be worth $1.9 billion in 2026, up from $691 million in 2019. That suggests a compound annual growth rate of 15.1% according to the latest figures.
eSports industry growth
The increasing popularity of video games is expected to drive the growth of the eSports industry. Growing acceptance for advanced gaming technology, evolving customer entertainment preferences, rising income levels, and increasing demand for mobile gaming are all tailwinds expected to help drive the industry’s growth through 2026.
Increased social acceptance is another factor. Ten years ago, it would have seemed unlikely that eSports could become a competitive occupation with players gaming in stadiums watched by thousands of spectators. However, that is just what has happened. Impressive international prize pools, growing streaming revenues, and sponsorships have helped power the growing popularity of gaming tournaments.
Rising investment and sponsorship spending, as well as broadcast rights, live event ticket sales, merchandise sales, and in-game transactions, are all expected to contribute to the Esports industry growth over the next five years.
The top stocks
The big players in this market are Activision Blizzard Inc., Alphabet Inc., and their Stadia platform, Electronic Arts Inc., Tencent Holdings Ltd., and Take-Two Interactive Software Inc.
Nvidia Corporation and Advanced Micro Devices Inc. also deserve a special mention. It wouldn’t be possible to play most modern video games without input from these two chip designers. They