Australia Esports Market Size, Share Analysis and Forecast Report 2024-2032

Australia Esports Market Trends

The growth of the Australia esports market significantly contributes to economic expansion by creating employment opportunities and fostering business growth. Esports tournaments draw global participants, enhancing tourism and benefiting the local hospitality sector. The market engages young Australians in team-based activities, promoting skills such as strategic thinking, hand-eye coordination, and problem-solving. According to ACMA, males are more likely than females to engage in online sports betting (23% vs. 10%) and racing betting (22% vs. 14%).

Australia Esports Market Growth

The demand for the Australia esports market is growing as it fosters social connections, creating communities where players and fans can interact. Competitive gaming promotes a healthy lifestyle, focusing on physical activity and mental sharpness. The industry encourages diversity and inclusion, engaging players from various backgrounds. Local events and grassroots tournaments boost fan engagement, while increased media coverage raises the profile of esports in Australia. According to ACMA, online sports betting, including esports, stabilised at 17% in 2022.

The Australia esports market is impacting as corporate investment targets a young, engaged audience. Esports offers clear career pathways, including professional gaming, content creation, and event management, while collaborations with traditional sports create cross-industry opportunities. The sector fosters creativity and collaboration within Australian youth culture, with a growing audience providing more opportunities for advertisers and content creators.

Australia Esports Market Insights

• In 2021, Australia’s expanding gaming industry generated USD 226.5 million in revenue, highlighting its growing importance in the economy. This revenue boost fosters job creation, supports local businesses, and drives innovation, establishing Australia as a key player in the global gaming and esports sectors.
• According to industry reports, 91% of Australian households own a video game device, reflecting the nation’s strong gaming culture. This extensive device ownership creates a large, engaged audience for both esports and gaming, laying a solid foundation for future growth and market opportunities in Australia.
• As reported by ACMA, Australia’s internet penetration rate reached 94.9% in December 2022, contributing to the success of the esports market. Reliable and widespread internet access ensures seamless online gaming experiences, enhances esports participation, and supports the growth of streaming platforms, allowing players and fans to easily engage with events.
• The esports market in the Australian Capital Territory is expected to grow at a rate of 2.2% from 2024 to 2032.

Industry News

December 2024

AceZone, a Danish gaming headset manufacturer, has appointed Audacity Australia as its exclusive distributor for Australia and New Zealand. AceZone’s high-end headsets are used by professional esports players and major tournament organisers like PGL, ESL, and Electronic Arts, with models including the A-Rise, A-Spire, and A-Spire Wireless.

July 2024

Chiefs Esports Club, an Oceanic esports organisation, has partnered with Aussie Broadband for a year-long collaboration. The partnership aims to create gamer-focused experiences, products, and services. Previously fielding a League of Legends roster in the Oceanic scene, the team’s spot was acquired by FURY Global after Team Bliss's acquisition.

Australia Esports Market Drivers

Rising Popularity of Mobile Esports

The Australia esports market is capitalising on the rise of mobile gaming, as more and more gamers are participating in esports through smartphones and tablets. Popular games like PUBG Mobile, Free Fire, and Mobile Legends have gained significant traction. The rollout of 5G technology enhances mobile gaming, offering faster speeds and lower latency. This has made esports more accessible, particularly for younger and casual gamers. Mobile esports tournaments are growing in prominence, with local events and sponsorships accelerating the sector’s expansion. In June 2024, Heineken, in partnership with UM and Maven PR, launched Player 0.0, a mobile and sim racing tournament, promoting responsible drinking, and culminating in a national final in Sydney.

Growth of Streaming and Content Creation

The opportunities in the Australia esports market are expanding as demand for streaming increases, with platforms such as Twitch, YouTube Gaming, and Facebook Gaming experiencing notable growth. These platforms are crucial for engaging audiences and extending the reach of esports events. Local players, teams, and influencers are tapping into content creation by streaming their gameplay, hosting esports-related shows, and producing tutorials. This has led to a rise in viewership, community engagement, and increased sponsorship opportunities. Esports content is now widely consumed, fostering a robust community that actively supports local teams and events. GeForce NOW, powered by CloudGG, allows players to stream games using NVIDIA GeForce RTX GPUs, with options for both free and premium memberships.

Opportunities in the Australian Esports Market

A growing trend in the Australia esports market is the increasing collaboration between esports and traditional sports. Professional sports teams and organisations are either sponsoring esports teams, establishing their own esports divisions, or partnering with esports events. This fusion of sports and digital entertainment opens new opportunities for both sectors, bringing esports into the mainstream by associating it with established traditional sports brands and attracting a broader audience. Such partnerships are expected to promote cross-industry collaborations, contributing to a more inclusive and diverse esports ecosystem in Australia. Additionally, Yulunga Games provide a platform for Australians to learn about Indigenous culture through inclusive sports.

Market Restraints

The Australia esports market faces several challenges, including limited infrastructure for large-scale events, high competition, and inconsistent regulation across states. A lack of government support and challenges in monetising audiences beyond sponsorships further hinder growth. Additionally, cultural barriers persist, with traditional sports dominating.

Mental health concerns, technology costs, and a younger audience base can also restrict participation and long-term growth. Furthermore, sponsorship deals are often volatile, making financial stability uncertain. These issues collectively impact the esports sector’s development, making it difficult for the market to reach its full potential. Addressing these restraints will be key to fostering a more sustainable and expansive esports ecosystem in Australia.

Australia Esports Industry Segmentation

“Australia Esports Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Revenue Model

• Media Rights
• Advertising and Sponsorships
• Merchandise
• Tickets
• Others

Market Breakup by Platform

• PC- Based Esports
• Console-Based Esports
• Mobile and Tablets

Market Breakup by Games

• Multiplayer Online Battle Arena (MOBA)
• Player vs Player (PvP)
• First Person Strategy (FPS)
• Real Time Strategy (RTS)

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Esports Market Share

Market Analysis by Revenue Model

According to the Australia esports market analysis, advertising and sponsorships are key sources of funding for esports teams and events in Australia. This segment is projected to grow at a CAGR of 8.8% from 2024 to 2032. These financial partnerships not only improve brand visibility but also enable the promotion of products to a specific audience. As the esports fanbase continues to grow, companies capitalise on this expansion to build brand loyalty and effectively engage with younger consumers.

Media rights play a crucial role in influencing the Australia esports market revenue, supporting event organisation, team operations, and player development. This sector is expected to grow at a CAGR of 8.3% from 2024 to 2032. As the demand for esports broadcasting increases, collaborations with both traditional and digital media platforms boost visibility, attract sponsors, and foster greater community engagement among fans.

Merchandise sales play a key role in boosting the Australia esports market growth by offering fans tangible connections to their favourite teams and players. This revenue stream not only supports team finances but also strengthens community engagement, loyalty, and brand identity within the expanding esports ecosystem. In April 2024, Melbourne's Olympic Park, known for hosting tennis and rock 'n' roll events, transformed into a gaming hub for Dreamhack, Australia's largest esports event. Tens of thousands attended to watch esports teams, cosplayers, and creators, with MSI and Intel showcasing advanced gaming technology at the centre court.

The growth of the Australia esports market is also driven by ticket sales for esports events, which generate crucial revenue and enhance fan experiences through live competitions. These events encourage community interaction and excitement, increasing attendance, viewership, and the overall visibility of esports in Australia. In June 2024, Oz Comic Con Melbourne, held at the Melbourne Convention and Exhibition Centre (MCEC), became one of the country's top pop culture and cosplay events, featuring comics, video games, anime, and the latest studio activations.

Market Analysis by Platform

According to the Australia esports market report, console-based esports lead the sector by providing a structured environment for competitive gaming, encouraging community engagement and participation. With widespread console ownership, these games are accessible to a broader audience. Popular titles like FIFA and Call of Duty significantly boost viewership and attract sponsorships, enriching the esports ecosystem. In September 2024, Sony opened pre-orders for the PlayStation 5 Pro, the latest addition to its console range. Unveiled by PS5 Lead Architect Mark Cerny, the console features a faster GPU, expanded storage, and AI-powered technology for enhanced image clarity and high frame rate gameplay.

The demand for the esports market in Australia is growing, with mobile and tablets providing unmatched accessibility, allowing players to compete anytime and anywhere. This flexibility has drawn a diverse, particularly younger, audience. This segment is projected to grow at a CAGR of 8.5% from 2024 to 2032. Popular mobile games such as PUBG Mobile and Clash Royale have driven greater participation and viewership. Industry reports show Australia’s disposable personal income reached AUD 395,857 million, with "Real Net National Disposable Income" per capita at USD 71,479 for the 2021-22 financial year, further boosting mobile and tablet game sales.

Market Analysis by Games

The development of the Australia esports market has been propelled by Multiplayer Online Battle Arena (MOBA) games, which foster a competitive environment that attracts a dedicated player base and audience. These games encourage teamwork and strategic thinking, increasing player engagement. The growing esports scene surrounding MOBAs fuels sponsorships, tournament opportunities, and community expansion, highlighting their significance in Australia’s esports sector. In October 2024, Black Ops 6 launched, introducing substantial changes to Warzone, including new gameplay mechanics, exclusive mastery camos, and the fresh Resurgence map, Area 99.

The Australia esports market also benefits from Player vs Player (PvP) formats, which generate intense competition and excitement. PvP games promote skill development and strategic gameplay, creating a vibrant community. This format enhances engagement through tournaments and leagues, driving revenue growth and raising esports visibility in Australia. Additionally, Plants vs. Zombies™ 3 was soft-launched in January 2024, reintroducing classic lane-based tower defence gameplay with new and familiar characters, while expanding the PvZ universe with fresh content.

Australia Esports Market Regional Insights

New South Wales Esports Market Overview

The New South Wales esports market thrives due to strong infrastructure and an expanding gamer community. Major tournaments enhance visibility, attracting sponsorships and investments that aid local teams and talent development, fueling overall growth. The UNSW Esports Club offers various events, catering to all skill levels, including casual play, tournaments, and movie nights.

Queensland Esports Market Trends

Queensland's esports market sees increased participation and sponsorship interest. The state's emphasis on grassroots and educational initiatives supports talent development, encouraging more players to engage in competitive gaming. Upcoming grassroots and school esports events in Queensland include the Gold Coast International EAFC E-Series from 13th to 15th January 2025, organised by Queensland Esports in collaboration with GC International.

Western Australia Esports Market Dynamics

Western Australia's esports market, though smaller, benefits from a passionate community. This market is projected to grow at a CAGR of 8.3% from 2024 to 2032, driven by local initiatives and partnerships with schools and universities. The UWA Esports Club offers a variety of events, from casual gaming nights and watch parties to multi-week tournaments. These events are held both on campus and online via their Discord server.

Competitive Landscape

The Australia esports market key players focus on development by providing professional coaching, and support staff, and fostering a strong community for their players. Beyond competition, these organisations interact with their fanbase, create content, and significantly contribute to the growth of esports in Australia. They focus on organising esports tournaments, gaming experiences, and content creation for a broad audience.

Key Industry Players

The Chiefs Esports: Based in Australia, The Chiefs Esports is one of the premier esports organisations in the region. Established in 2014, it is renowned for its competitive teams across games like League of Legends, Counter-Strike, and Valorant. The organisation is committed to nurturing talent and building a strong fanbase.

Esports Melbourne: The company is headquartered in Victoria and is dedicated to promoting competitive gaming and esports culture across the region. Founded in 2018, the organisation hosts tournaments, events, and community engagements, aiming to grow the esports scene in Melbourne and foster local talent in various gaming disciplines.

Avant Gaming: Established in 2017, Avant Gaming is a prominent Australian esports organisation based in Melbourne. The company fields competitive teams across a range of popular games, including League of Legends and Rainbow Six Siege. Avant Gaming is known for its commitment to player development and community engagement.

Critical Hit Entertainment Pty Ltd.: Founded in 2019 and headquartered in Melbourne, Critical Hit Entertainment is a leading esports and gaming event company. It focuses on producing esports tournaments, gaming experiences, and content creation for a wide audience. The company is dedicated to supporting the Australian gaming community through innovative events and collaborations.

Another key player in the Australia esports market report is KANGA ESPORTS among others.

Recent Developments

July 2024

Motorsport Australia partnered with The FUSE Cup, Australia’s largest school Esports provider. The collaboration aimed to create opportunities in both Esports and traditional motorsport, focusing on promoting essential skills like teamwork, strategic thinking, and digital literacy among students.

August 2022

The Chiefs Esports Club partnered with McDonald’s Australia (Macca’s) to launch educational live streams. The streams featured League of Legends streamer Drew ‘Midbeast’ Timbs and LCO interviewer Athena ‘kiittwy’ Jiang, offering fans the chance to win exclusive Macca’s x Chiefs merchandise.