The Australia esports market, valued at AUD 207.66 million in 2024, has experienced significant growth. This dynamic industry 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, broadening the reach and accessibility of esports to a diverse audience. The market is projected to grow at a compound annual growth rate (CAGR) of 7.80% from 2025 to 2034, potentially reaching AUD 440.09 million by 2034, driven by advancements in gaming hardware, software, and internet infrastructure. As esports becomes an integral part of Australian culture, its continued evolution is set to reshape the entertainment landscape.

Key Drivers of Growth in the Australian Esports Market

1. The Rise of Mobile Gaming: One of the most notable shifts in the esports market is the increasing participation of gamers on mobile platforms. The proliferation of smartphones and tablets has made esports more accessible, enabling casual and competitive gamers to play from virtually anywhere. Titles like PUBG Mobile, Free Fire, and Mobile Legends have not only garnered immense popularity in Australia but also contributed to the growth of esports events tailored specifically for mobile players. The ease of access and low-cost barrier to entry compared to traditional gaming consoles have helped expand the esports demographic to a broader audience, including younger and more diverse groups.

2. Advancements in Gaming Hardware and Software: Innovations in gaming hardware and software are propelling the esports market in Australia to new heights. High-performance gaming PCs, peripherals, and gaming consoles have enhanced the competitive experience, while advanced software and optimization tools allow players to refine their skills and tactics. The rise of cloud gaming has also contributed to the expansion of esports, making it easier for players to access their favorite games without needing high-end hardware. With these advancements, both professional and amateur players have the tools to compete at their best, fueling the esports ecosystem.

3. Improved Internet Infrastructure: The growth of esports in Australia is closely linked to the country’s improved internet infrastructure. Faster internet speeds, lower latency, and more reliable connections have made online gaming smoother and more enjoyable. High-speed broadband, coupled with 5G technology, has enabled players to participate in high-quality esports tournaments without the disruption of lag or connection issues. As internet accessibility improves, more gamers are joining the competitive gaming scene, further propelling the esports industry forward.

4. Increased Media and Sponsorship Investment: Esports in Australia has witnessed a surge in media attention and sponsorship opportunities. Leading media outlets, broadcasters, and streaming platforms have embraced esports, offering live coverage of tournaments and events. Companies from various sectors, including technology, telecommunications, and retail, are increasingly investing in esports sponsorships, recognizing the value in connecting with younger, tech-savvy audiences. The presence of major brands in the esports space helps to legitimize the industry and provides financial backing for tournaments and competitions, increasing their scale and visibility.

5. Government and Institutional Support: The Australian government has recognized the potential of esports as a growing sector of the economy and has taken steps to support its development. Efforts include initiatives aimed at fostering esports talent, creating infrastructure for esports events, and supporting grassroots gaming communities. Educational institutions and universities are also increasingly offering esports programs and scholarships, which provide students with the opportunity to pursue careers in the esports industry. This institutional support is critical in professionalizing the esports sector and attracting new talent to the industry.

6. Popularity of Esports Events and Tournaments: Esports events and tournaments are some of the most exciting aspects of the market, drawing in large audiences and generating significant media coverage. Events such as The ESL Pro League, DreamHack, and IEM Katowice are gaining international recognition, with Australian teams and players participating in global tournaments. The local scene is also booming, with a growing number of regional competitions catering to players of all skill levels. These events create an engaging environment for both players and spectators, driving interest and investment in the esports market.

Market Segmentation

1. By Game Type: The Australian esports market is diverse, encompassing various genres of games that appeal to different types of players. Some of the most popular game genres in the esports space include:

   • Multiplayer Online Battle Arenas (MOBAs): Games like League of Legends and Dota 2 are among the most competitive esports titles, with a well-established global following and a robust professional scene.
   • First-Person Shooters (FPS): Titles such as Counter-Strike: Global Offensive, Call of Duty, and Valorant are staples of the FPS esports scene, with a strong player base and high-profile tournaments.
   • Sports and Racing: Competitive gaming also extends to sports and racing games like FIFA and Gran Turismo, where players can compete in virtual simulations of real-world sports.
   • Mobile Esports: As mentioned, mobile esports titles like PUBG Mobile, Free Fire, and Mobile Legends are seeing explosive growth in Australia due to their accessibility on smartphones and tablets.

2. By Revenue Source: The esports market in Australia generates revenue from multiple streams, including:

   • Sponsorship and Advertising: Sponsorship deals with gaming companies, telecommunications providers, and tech firms form a significant part of the revenue landscape. Advertisers target a highly engaged audience of gamers and esports fans.
   • Media Rights: Broadcasting rights for esports tournaments are becoming increasingly valuable, as media outlets and streaming platforms secure exclusive deals to broadcast competitions.
   • Ticket Sales: Large-scale esports events attract thousands of fans, who purchase tickets to watch the live action. These events often include spectator experiences, merchandise, and gaming expos.
   • Merchandise Sales: Esports teams and players also generate revenue through the sale of branded merchandise, including apparel, accessories, and gaming gear.

3. By End-User:

   • Players: Both professional players and casual gamers are central to the esports ecosystem. Competitive players represent teams in national and international tournaments, while casual players engage in the gaming community and contribute to the popularity of esports titles.
   • Fans and Spectators: The esports industry has seen a significant rise in online viewership, with millions of people watching live streams and broadcasts of tournaments. Fans are passionate about their favorite teams and players, and esports have become a major form of entertainment for many.
   • Investors and Sponsors: The continued investment in esports from brands and corporations is key to the industry's growth. Investors play a crucial role in financing esports teams, events, and infrastructure, while sponsors provide financial backing for tournaments and competitions.

Challenges Facing the Esports Market in Australia

1. Regulatory and Legal Issues: As esports grows, the need for regulation becomes more pressing. Issues such as fair play, intellectual property rights, and gambling-related concerns in esports need to be addressed to ensure the long-term sustainability of the market. Clear guidelines are necessary to prevent match-fixing, ensure player safety, and protect the integrity of the competitions.

2. Monetization and Sustainability: While sponsorships and media rights are significant revenue drivers, some esports organizations still struggle with long-term financial sustainability. The cost of organizing events, team management, and securing sponsorships can be high. Finding new monetization avenues, such as microtransactions, merchandising, and fan engagement, is crucial for ensuring the financial viability of esports organizations.

3. Competition and Player Well-being: As the esports scene becomes more competitive, the pressure on players to perform at a high level intensifies. Issues related to mental health, burnout, and work-life balance are becoming increasingly important in the professional gaming community. Addressing these challenges is essential for ensuring that players can sustain long, successful careers in the industry.

Future Outlook

The future of the Australian esports market looks exceptionally bright. With a projected CAGR of 7.80%, the market is expected to grow significantly by 2034, driven by innovations in mobile gaming, gaming technology, and infrastructure. The continued rise of mobile esports, the growing popularity of esports events, and the increasing involvement of major brands and investors will fuel this growth.