According to a report by professional services company EY, the esports industry is expected to grow at a compound annual growth rate (CAGR) of 46%, reaching 11 billion rupees by 2025. The estimated figure is four times the size of the current industry and is expected to reach 2.5 billion rupees by 2021.
Unlike online games, esports is defined as an online game of skills played in tournaments. In tournaments, different teams or individual players compete with each other to win championships, leagues, or championships, just like they do in sports.

As the country’s esports industry is growing faster than the global esports industry, India is also accelerating the pace of its prize pool growth. India’s esports prize pool only accounts for 0.6% of the global prize pool, but it is expected to reach nearly 2% by 2025. India’s cash prize pool is expected to grow at a compound annual growth rate of 66%, reaching 1 billion rupees by 2025. According to the report titled “Done. Place. The game begins!” which was released on Monday, the growth of the prize pool is still one of the most important and motivating factors for attracting new players.

It is estimated that India currently has 1,50,000 players and approximately 60,000 teams. As esports become a viable career for young people, the number of esports players is expected to grow at a compound annual growth rate of 78% by 2025, reaching 1.5 million players and 250,000 teams. Growth will be driven by increased bonuses, more games, localization, regional adaptation, and growth in smartphones, laptops, and broadband infrastructure.
Unlike the West, mobile phones are the preferred device for esports in India. More than 90% of esports players participate in mobile esports competitions. As esports competitions become more competitive, they attract more audiences and support from players and spectators. Currently, there is more than 14 esports streaming media platforms. It is expected that by 2025, it will span 20 platforms. Although the current audience is 17 million, by 2025 there will be more than 85 million independent spectators watching esports in the country, which is equivalent to about 10% of the global esports audience.

EY also stated that in the next four years, esports will have a total economic impact of more than US$100 billion through investment, direct industry revenue, in-app purchases, and other revenues. By 2025, games popularized by esports games will generate approximately 14 billion rupees in-app purchase revenue, and the industry is expected to generate more than 300 million rupees in ancillary revenue, which may include licensing and marketing revenue and player wages. It is estimated that by 2025, the esports industry will create more than 11,000 direct and indirect employment opportunities.

As the number of esports tournaments targeting a growing audience and player base increases, it is expected that advertisers and agencies will use the ratings of esports tournaments to expand their engagement with the audience. By 2025, advertising streaming revenue is expected to quadruple, reaching 6.5 billion rupees, becoming the main source of esports revenue. Championship sponsorship and joint revenue are expected to grow at a compound annual growth rate of 45%, reaching 35 billion rupees by 2025.

Unlike countries such as the United States, China, Germany, South Korea, and Sri Lanka that recognize esports as a professional sport, India has not yet provided regulatory support for this sport. The report emphasized that the industry needs regulatory support from the Indian government and state governments in recognizing esports, creating esports node institutions, providing special economic zones or special economic zone benefits, development subsidies, and stimulating the foundation of esports.

Credits: Mint