IBEF: June 29, 2021
On Monday, EY published a report and stated that Indian esports industry is projected to reach Rs. 1,100 crore (US$ 148.19 million) by 2025, registering a 4X growth.
The esports industry in India, i.e., the electronic sports market is estimated at Rs. 250 crore (US$ 33.68 million) in 2021 and projected to grow at a compound annual growth rate (CAGR) of 46% in the next four years.
Esports is described as online skill games that are performed in tournaments where various teams or individual participants compete to win the tournament, league or title like physical sports.
India is estimated to have 150,000 players and ~ 60,000 teams. The growth of the market is faster as compared to world e-sports industry. By 2025, the number of players is projected to reach 1.5 million and 250,000 teams.
As per the report titled as ‘Ready. Set. Game ON!’, “The industry is projected to grow at a CAGR of 46% registering a 4X growth to reach Rs. 1,100 crore (US$ 148.19 million) by 2025 from Rs. 250 crore (US$ 33.68 million) in 2021.”
The report added that the cash prize pool in India is expected to grow at a CAGR of 66% and estimated to reach Rs. 100 crore (US$ 13.47 million) in the period.
The report said, “The Indian esports cash prize pool accounts for 0.6% of the global prize pool and is expected to grow to ~ 2% by 2025. Expansion in the prize pool continues to be one of the key factors and encouragements for attracting new genuine players.”
The rising number of esports tournaments addressing the growing demand from audience and gamer, is expected to benefit agencies and advertisers to leverage esports tournament viewership to gain engagement and reach with the audience.
The report said, “Streaming ad revenue is expected to reach Rs. 650 crore (US$ 87.56 million) by 2025 making the major portion of esports revenues. Tournament sponsorship and syndication revenue is expected to grow at a CAGR of 45% to reach Rs. 350 crore (US$ 47.15 million) by 2025.”
Mr. Ashish Pherwani, EY India Partner and Media & Entertainment Leader, said, “Esports in India reveals a huge growth story. As a game of skill available indoors and on the global mobile phone, it has earned popularity in lockdowns in 2020 and 2021. As a result, it has become an attractive opportunity for brands to unite with young and empowered audiences.”
The report added, the growth of the market is driven by expansion of the prize money, rising number of games, localisation, domestic adaptation and infrastructure growth of smartphone, laptop and broadband.
Mobile phones are the ideal device choice for esports in India with > 90% players participating in mobile esports tournaments.
The report added, “Esports establishes a prospect to build India’s soft power worldwide as large-scale coordinators such as the South Asian Games and Asian games have combined esports in their list of formal competitions.”
Olympics too is assessing adding esports to their contests. In the 18th Asian Games conducted in 2018, nine esports contestants from India participated and one of them earned a bronze medal.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.