Over the years, the esports industry has amassed significant popularity, with some events routinely attracting over a million concurrent viewers. This large following has made esports athletes an attractive option for lucrative corporate sponsorships. However, the fluidity of esports over international boundaries and the lack of defined rules make the industry incredibly complex. This article will provide an overview of the growing global esports industry and introduce the Maltese esports market.
The mechanics of esports are not so different from traditional sports. Although organised competitions have long been a part of videogame culture, these were largely between amateurs until the late 2000s, when participation by professional gamers and spectatorship in these events through live streaming (using services such as Twitch) saw a large surge in popularity. Just as traditional sports fans enjoy watching top athletes perform at the top of their game, the same is true of those who watch top video gamers face off in popular games such as Fortnite, League of Legends, Valorant, Counter-Strike, Call of Duty, Overwatch and Player Unknown’s Battle Grounds (PUBG), to name a few. These gamers are watched and followed by millions of fans the world over.
PwC has been monitoring the rapid rise of esports and has been reporting on the meteoric rise of the industry for several years through the annual publication: PwC Global Entertainment & Media Outlook. After several years of remarkable growth, the pandemic hit the esports market hard in 2020. Although the market continued to grow, all areas of the market faced a slowdown in growth. Revenue from ticket sales shrank dramatically as lockdowns across the globe took hold, and live events were cancelled or postponed. The market rebounded in many areas in 2021, and further recovery is expected through 2022.
Global esports revenue was €1.18b in 2021 and is projected to increase at a 14.0% compound annual growth rate (CAGR) to reach €2.27b by 2026. In 2022, year-on-year growth is expected to rise to 29.8%, moving closer to pre-pandemic levels. However this is expected to be only a temporary bump, and year-on-year growth will decelerate to 8.2% by 2026. The majority of esports revenue stems from sponsorship and media rights, accounting for 46.0% and 32.8% of total revenue in 2021, respectively.
China is the largest individual market for esports revenue, having overtaken the US in 2019. It held 33.5% of the market in 2021, and its share is expected to remain steady for the next five years. The US and South Korea are the second and third largest markets. In this respect, Europe is one of the fastest-growing markets in the world and is expected to overtake South Korea and become the third-largest market in the esports industry.
The increasing popularity of video games is expected to continue to drive the global esports market over the next few years. A number of factors are contributing towards the impressive growth rates in the industry, including:
the increasing acceptance of advanced gaming technologies;
evolving customer entertainment preferences;
rising income levels; and
increasing demand for mobile gaming.
Today, millennials view esports as a genuinely competitive occupation as a result of the significant popularity of gaming tournaments, large international prize pools, impressive streaming revenues, and one-to-one sponsorships. Moreover, as the esports industry becomes increasingly more competitive and popular, it is able to significantly grow income streams from sponsorship and advertisement. As a result, such factors further drive growth and interest in the esports industry.
The Western European market has significant awareness regarding esports, and therefore can be considered as being a relatively mature market. Within this region, Germany is the leading revenue contributor to the esports market, followed by the UK and France.
With esports becoming increasingly popular amongst Europeans, there has been significant growth in esports within this region. Europe is home to a number of popular tournaments and leagues, such as the European Gaming League, which has further increased the popularity and awareness of esports within the continent. The growth of the gaming market in Europe is further supported by the increasing number of Merger & Acquisition activities among gaming solution providers, gaming content providers, and other gaming platform providers.
In 2021, the region generated €220m in revenue from the esports industry. The main contribution to this revenue was sponsorships (47%) and media rights (30%). Looking ahead, the Western European esports industry is forecasted to have a year-on-year growth rate of 33% in 2022. Furthermore, the regional market is expected to double in size by 2026 and generate €441m in revenue.
Malta currently has a thriving iGaming industry, and is considered one of the world’s most prominent regions within this sector. With the iGaming and esports industries sharing a number of synergies, Malta’s well-established iGaming ecosystem poses a great environment for the esports sector to thrive, making Malta an attractive destination for investment in esports.
In recent years, Malta has hosted a number of international esports events such as Malta Vibes, Cyber.Bet Cup, European Development Championship, and Call of Duty European League. These events attracted a significant number of online viewers, as depicted in the table below.
Although the esports industry in Malta is still relatively young, there has been significant interest in the local market in recent years. In May 2019, the Government launched “Malta’s vision for video game development and esports” with the policy document identifying three focus areas for potential business development in Malta:
The policy document identifies the Government's vision to generate between 2,200 and 3,000 full-time equivalents (FTEs) in this sector, with the esports industry contributing towards at least 1% of Malta’s GDP. Within this respect, the policy document highlights Malta’s ambitions to achieve:
A strong local esports ecosystem;
Support and grow local talent;
Attract international competitions;
Promote Malta through the millions of viewers following esports; and
Attract a niche esports tourism market.
In order to achieve this vision, the policy document highlights financial incentives and policy measures that the Government will introduce to grow and support Malta’s esports industry.
Malta currently has a thriving iGaming industry, and is considered one of the world’s most prominent regions within this sector. With the iGaming and esports industries sharing a number of synergies, Malta’s well-established iGaming ecosystem poses a great environment for the esports sector to thrive, making Malta an attractive destination for investment in esports.
In recent years, Malta has hosted a number of international esports events such as Malta Vibes, Cyber.Bet Cup, European Development Championship, and Call of Duty European League. These events attracted a significant number of online viewers, as depicted in the table below.
Tournament |
Game |
Organiser |
Hours broadcasted |
Unique viewers via Twitch |
Malta Vibes (10 events) |
CS:GO |
Eden Esports |
738 |
12,300,000 |
Cyber.Bet Cup 2020 |
CS:GO |
GMR |
33 |
279,389 |
European Development Championship Season 1 |
CS:GO |
Eden Esports |
102 |
1,300,000 |
Cyber.Bet Summer Cup 2020 |
CS:GO |
GMR |
45 |
174,594 |
Warsz & Jukeyz Subscriber Tournament |
Call of Duty: Warzone |
EEG |
24 |
100,000 |
Data Report 2020, Malta Esports Association
Further to hosting international tournaments, a number of new local competitions have been set up in the last couple of years as outlined below:
Tournament |
Game |
Organiser |
Main sponsor |
Broadcast |
ePremier League |
FIFA |
Malta Football Association and GMR |
BOV |
Online stream |
Malta Gran Turismo National Championship |
Gran Turismo |
Malta Motorsport Federation and World Pro Racing |
Gamebreaker |
National television |
Malta National League Season 1 |
CS:GO |
Eden Esports |
GamingMalta |
Online stream |
Data Report 2020, Malta Esports Association
As the local esports industry continues to grow and attract interest, the local sector is establishing itself in a more formal manner. In May 2022, the Malta Esports Association was officially set up and launched. The Malta Esports Association is a registered non-profit organisation composed of a broad spectrum of stakeholders within the Maltese esports community, focused on the betterment of both the esports ecosystem and the business environment in Malta. The developments in recent years indicate that the esports industry is gaining traction within the local market.
The Esports industry is expected to sustain its high growth in the next few years, as it continues to attract a large international audience. As interest in the sector grows, players, event organisers and broadcasters are able to achieve more lucrative sponsorship and advertisement agreements. Within the global context, Europe is fast establishing itself as one of the leading and most attractive regions for Esports.
Whilst Esport is still a relatively young industry in Malta, there have been significant developments in this space. Due to its established iGaming ecosystem, Malta presents an attractive environment for Esport investors. Moreover, the Government is aiming to further develop and support the local esports market through a number of financial incentives and policy decisions. Esports activity in Malta has continued to grow and is quickly establishing itself within the local market.
