Esports - South Korea

South Korea

In South Korea, revenue in the Esports market is projected to reach €275.6m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.90%, resulting in a projected market volume of €384.8m by 2029.
The largest market in South Korea is Esports Betting, with a market volume of €140.6m in 2024.
While most revenue is generated the United States, in South Korea is also a significant contributor with its own growing market.
In the Esports market withSouth_Korea, the number of users is expected to amount to 12.2m users by 2029.
User penetration in South Korea will be 19.7% in 2024 and is expected to hit 23.8% by 2029.
The average revenue per user (ARPU) in South Korea is expected to amount to €27.07.
South Korea continues to solidify its position as a global leader in esports, bolstered by robust government support and a passionate gaming culture.

Key regions: China, United States, Asia, Germany, France

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Analyst Opinion

The eSports market in South Korea is experiencing minimal growth, influenced by factors such as increasing sponsorship and advertising opportunities, rising merchandise and ticket sales, and the popularity of streaming and media rights. Publisher fees and eSports betting also contribute to the market's growth, but challenges such as regulatory limitations may impact the overall growth rate.

Customer preferences: The eSports market in South Korea has experienced a significant shift in consumer preferences, with a growing demand for virtual reality (VR) gaming experiences. This trend is driven by the cultural value placed on technology and the popularity of gaming as a form of entertainment. Additionally, the younger demographic, who are more likely to engage in eSports, are also more tech-savvy and open to embracing new technologies. This has led to a rise in the use of VR headsets and gaming equipment, as well as an increase in the number of VR tournaments and events.

Trends in the market: In South Korea, the eSports market is experiencing a surge in mobile gaming, with a significant increase in mobile eSports tournaments and competitions. This trend is driven by the growing popularity of mobile gaming and the convenience it offers to players. Additionally, there is a rising trend of virtual reality (VR) and augmented reality (AR) in eSports, with more game developers incorporating these technologies into their games. These trends have significant implications for industry stakeholders, as they offer new opportunities for revenue generation and audience engagement. However, they also pose challenges, such as the need for infrastructure and investment in VR/AR technology.

Local special circumstances: In South Korea, the eSports market has been thriving due to the country's advanced technological infrastructure and strong gaming culture. The government has also played a significant role in supporting the growth of the market through initiatives such as the Korea Creative Content Agency. Additionally, South Korea's dominance in other industries such as K-Pop and K-Dramas has led to a strong fan base for eSports, further driving its success. The country's strict regulations on gaming have also contributed to the development of a professional eSports scene, with players and teams being treated as celebrities and earning high salaries.

Underlying macroeconomic factors: The eSports market in South Korea is heavily influenced by macroeconomic factors such as government support, technological advancements, and investment in digital infrastructure. With a strong economy and a high level of technological development, South Korea has become a hub for eSports, attracting major tournaments and investments from global gaming companies. Additionally, the country's favorable regulatory environment and strong funding for eSports have further fueled the growth of the market. Moreover, the increasing popularity of eSports among the younger demographic and the rise of online gaming culture have also contributed to the market's success in South Korea.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports market, which comprises revenues from and users of professional competitive gaming content. This includes any professional and semiprofessional gaming competitions within tournaments or leagues that offer a championship title or prize money. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.