Australia Esports Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

Australia Esports Market Overview

The Australia esports market is emerging as a substantial economic driver, supported by rising consumer engagement and cross-sector business prospects. This sector is generating employment across digital media, event management, and hospitality, while enabling sector expansion through sponsorships, content monetisation, and international tournament hosting. These events attract global audiences, stimulate tourism, and increase spending in local service-based industries. Additionally, the convergence of esports with online betting presents a parallel trend, especially among male participants. According to the Australian Communications and Media Authority (ACMA), 23% of males are more likely than 10% of females to engage in online sports betting, and 22% of males versus 14% of females in racing betting.

Australia Esports Market Growth

The growth of the Australia esports market is underpinned by its ability to foster highly engaged, interactive communities. These digital ecosystems drive user retention through shared interests, competitive play, and live engagement. Esports promote cognitive development and well-being, appealing to younger demographics through balanced digital lifestyles. Importantly, the sector is advancing diversity and inclusion by attracting participants from broad demographic profiles. According to ACMA, online sports betting, including esports, stabilised at 17% in 2022, highlighting growing mainstream acceptance.

The Australia esports industry revenue is impacted by corporate interest, with brands targeting digitally native, youth-driven audiences known for high engagement and social influence. This presents substantial prospects across content creation, sponsorship, and digital marketing. Career pathways are expanding in professional gameplay, production, and event logistics.

Key Trends and Developments

The Australia esports market growth is propelled by the professionalisation of the esports ecosystem, increased brand sponsorship and advertising, the expansion of local tournaments and grassroots engagement, and academic integration supporting career pathways.

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.

July 2024

Motorsport Australia partnered with The FUSE Cup, Australia’s largest school Esports provider. The collaboration aimed to create prospects 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.

Professionalisation of Esports Ecosystem is Driving the Demand of the Australia Esports Market

The Australian esports sector is undergoing rapid professionalisation, with increased investment in structured leagues, coaching frameworks, and athlete development. This trend reflects rising stakeholder confidence and audience need for high-quality competition. Commercial partnerships and structured governance models are positioning esports as a credible, long-term industry segment aligned with traditional sports infrastructure and monetisation strategies.

Brand Sponsorship and Advertising are Impacting the Australia Esports Industry Revenue

Major brands are leveraging esports to connect with digital-native, highly engaged youth audiences. Sponsorships, branded content, and influencer marketing within gaming environments are proving effective for engagement and brand loyalty. As audience numbers grow, esports present a scalable channel for advertisers seeking data-driven, immersive brand activations with strong ROI potential.

Local Tournaments and Grassroots Engagement are Boosting Australia Esports Market Expansion

Grassroots tournaments and local league development are gaining momentum, driving increased participation and regional engagement. This decentralised expansion model enhances accessibility, diversifies talent pipelines, and boosts long-term sector sustainability. Localised events also attract sponsorship and media coverage, positioning regional Australia as a valuable contributor to national esports infrastructure.

Academic Integration and Career Pathways is Driving the Growth of the Australia Esports Market

Esports are being increasingly integrated into educational institutions, with universities and TAFEs offering programs in gameplay, production, and esports business. This trend supports workforce development, legitimises esports as a viable career path, and aligns with government digital skills agendas. It also helps institutional stakeholders tap into new revenue and engagement channels.

Australia Esports Market Trends

The sector is leveraging the rapid rise of mobile gaming to expand its reach, with growing participation via smartphones and tablets driving sector expansion. Titles such as PUBG Mobile, Free Fire, and Mobile Legends have established strong user bases, particularly among younger, casual gamers. The rollout of 5G is enhancing mobile gaming experiences through faster connectivity and reduced latency. In June 2024, Heineken, in collaboration with UM and Maven PR, launched the Player 0.0 tournament, promoting responsible consumption through a mobile and sim racing format, highlighting how local events and sponsorships are accelerating the Australia esports sector expansion.

Opportunities in the Australia Esports Market

A notable trend in the Australia esports market is the growing integration between esports and traditional sports. Professional sports teams and organisations are now sponsoring esports teams, creating dedicated esports divisions, or collaborating with esports events. This convergence enhances the mainstream appeal of esports by aligning it with well-established traditional sports brands, thereby broadening its audience base. Platforms like Yulunga Games, which educate Australians about Indigenous culture through sports, exemplify how such partnerships can foster a more inclusive and diverse esports landscape, driving cross-industry collaboration.

Market Restraints

The Australia esports market faces substantial challenges, including limited infrastructure for large-scale events, intense competition, and inconsistent regulation across states. The absence of government support and difficulties in monetising audiences beyond sponsorships impede expansion, while traditional sports maintain cultural dominance.

Additionally, concerns around mental health, high technology costs, and a younger audience base restrict participation and long-term development. Volatile sponsorship deals also affect financial stability, limiting the sector’s full potential. Addressing these issues will be critical for sustainable expansion.

Australia Esports Market Share

Market Analysis by Revenue Model

Merchandise sales are a substantial contributor to the growth of the Australia esports market, enabling fans to form tangible connections with their favourite teams and players. This revenue stream not only supports team finances but also reinforces community engagement, fan loyalty, and brand identity within the esports ecosystem. In April 2024, Melbourne's Olympic Park, renowned for hosting prestigious sports events, became the venue for Dreamhack, Australia's largest esports event, drawing tens of thousands of attendees and showcasing advanced gaming technology from brands like MSI and Intel.

Ticket sales for esports events are another key expansion driver for the Australia esports market, providing vital revenue while enhancing fan experiences through live competitions. These events foster community interaction, building excitement and driving increased attendance, viewership, and overall sector visibility. In June 2024, Oz Comic Con Melbourne, held at the Melbourne Convention and Exhibition Centre (MCEC), solidified its position as one of Australia’s leading pop culture and cosplay events, featuring a range of gaming, comics, anime, and entertainment activations.

Market Analysis by Platform

According to the Australia esports market report, console-based esports are leading the sector by providing a well-defined, competitive environment that fosters community engagement and increased participation. With widespread console ownership, these games are accessible to a large audience. The PlayStation 5 Pro, launched in September 2024 with advanced features such as an enhanced GPU, increased storage capacity, and AI-powered visual improvements, was anticipated to boost viewership and draw greater sponsorship interest, particularly for high-profile titles like FIFA and Call of Duty, thereby contributing to the continued expansion and commercial maturity of the esports ecosystem.

The demand of the esports market in Australia is growing as mobile and tablet gaming offers unmatched flexibility, enabling players to compete at any time and place. This accessibility has attracted a younger, more diverse audience. With Australia’s disposable personal income reaching AUD 395,857 million in the 2021-22 financial year and a real net national disposable income per capita of USD 71,479, there is substantial potential to drive mobile and tablet game sales. This segment is expected to grow at a CAGR of 8.5% from 2024 to 2032, with mobile games such as PUBG Mobile and Clash Royale boosting participation and viewership.

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, growing player engagement. The growing esports scene surrounding MOBAs fuels sponsorships, tournament prospects, 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 expansion 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 sector thrives because of strong infrastructure and an expanding gamer community. Major tournaments enhance visibility, attracting sponsorships and investments that aid local teams and talent development, fueling overall expansion. 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 sector 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 sector, though smaller, benefits from a passionate community. This sector is propelled 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.

Victoria Esports Market Drivers

Victoria benefits from robust digital infrastructure, government-backed innovation hubs, and a strong creative industries base, making it a strategic hub for esports development. High youth engagement, skilled talent pipelines, and frequent hosting of major esports events support sector expansion, while public-private partnerships enhance investment confidence and long-term ecosystem sustainability.

Australian Capital Territory Esports Market Prospects

The ACT's high digital literacy, affluent population, and education-driven environment support strong grassroots and academic esports engagement. Government support for technology initiatives, combined with a centralised policy-making landscape, positions the ACT as a testbed for esports regulation and innovation. These conditions make it attractive for pilot programs and scalable partnerships.

Competitive Landscape

Key players in the Australia esports sector are driving sector expansion by investing in structured player development, including access to professional coaching, support staff, and wellness initiatives. These organisations extend beyond competition, fostering community engagement through content creation and interactive fan experiences. By hosting tournaments and bespoke gaming events, they are enhancing brand visibility, diversifying revenue streams, and contributing to the broader commercialisation and professionalisation of the national esports’ ecosystem.

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