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From niche hobby to global powerhouse: the integral role of ProAV in esports' meteoric rise

Jun 10, 2024 | Sanju Khatri

esports arena

Esports has evolved from a niche hobby into a global entertainment powerhouse. According to Omdia's Esports Revenue Forecast Report, global esports media revenue, which includes sponsorships, ticketing, and advertising, reached $2.2 billion in 2023 and is projected to grow at a robust CAGR of 9.6%, surpassing $3.5 billion by 2028. This impressive 58.9% increase over five years is driven by the surging popularity of competitive gaming, advancements in streaming technology and proliferation of high-speed internet access worldwide. Advertisers and sponsors are expected to invest heavily in esports to tap into the coveted youth demographics. These investments fund prize pools, team operations, and event production, contributing to the industry's rapid growth.

global esports media revenue forecast

The Rise of ProAV in the Esports Arena

Esports events heavily rely on ProAV equipment to enhance viewing experiences and maintain competitive integrity. Specialized venues like HyperX Esports Arena showcase the need for robust AV infrastructure. High-quality streaming is crucial, driving the development of sophisticated AV solutions for lag-free, HD live-streams to millions. Moreover, fans' desire for immersion has spurred the adoption of AR, VR, and XR technologies, offering innovative ways to engage with esports content.

Essential Equipment Powering the Esports Spectacle

The esports industry relies on high-end AV gear for engaging experiences. POV and PTZ cameras capture fast-paced action in detail, while advanced switchers and mixers enable seamless transitions and real-time graphics integration, delivering polished live broadcasts.

High-performance AV equipment is crucial in esports, where near-zero latency can make the difference between winning and losing. Large-format displays, like direct-view LED video walls, create visually impactful environments rivalling rock concerts. Audio quality is equally vital, with systems routing player communications and shoutcasting booths offering broadcast-level capabilities. Dynamic lighting enhances team spirit with custom effects, while high-bandwidth networking supports massive streaming demands, with events like League of Legends attracting over 6 million concurrent viewers on Twitch. 5G will further revolutionize streaming capabilities, providing faster, more reliable connections for live streaming events.

Successful integration requires a comprehensive approach, addressing various aspects including video, audio, lighting, and networking. A key component is ensuring interoperability between different AV devices and systems, which can be achieved through standardized protocols and robust system design that can handle high bandwidth demands of live esport events.

Challenges in ProAV Adoption for Esports

Despite rapid growth, esports face adoption challenges. Key issues include educators' lack of awareness about gaming-developed skills, leading to few faculty champions, and the NCAA's non-sanctioning in the U.S., hindering collegiate acceptance. Technological standardization is also a problem, with platform interoperability issues complicating cross-platform competitions. ProAV companies must thus educate beyond AV departments and adapt to evolving industry standards.

Regional Preferences in Esports Arenas

The demand for AV equipment in esports varies across regions, reflecting local market dynamics, infrastructure development, and cultural preferences.

Asia-Pacific

The Asia-Pacific region remains at the forefront, with countries like China, South Korea, and Japan investing heavily in state-of-the-art arenas designed specifically for esports events. This has led to a surge in demand for high-quality AV equipment in the region.

China heavily backs esports, subsidizing companies and building venues like Shanghai's 2025 mega esports arena, aiming for global leadership. With esports in the Asian Games since 2022, the sport's status is solidified. Asia's tech-forward culture likely drives higher AV solution adoption rates than other regions.

North America

In North America, the demand for AV solutions is driven by a mix of dedicated arenas and shared facilities within educational institutions. Universities and colleges are increasingly integrating esports into their curricula and campus activities, creating opportunities for companies specializing in AV solutions for academic settings. The presence of over 2,000 high schools with esports teams reflects the very high adoption of esports across the continent.

Europe

In Europe, the adoption of esports and related AV equipment is growing, but at a slower pace compared to Asia and North America. The region features a mix of dedicated esports venues and shared facilities.

Middle East and Africa

Saudi Arabia's esports market is booming, fueled by sports investments. The Qiddiya City Esports Arena, with 5,000+ 4D haptic seats, anchors the world's first mixed-use gaming district. This aligns with Saudi Vision 2030, aiming to make the Kingdom a global gaming hub.

In Africa, countries like Nigeria are witnessing increasing interest in esports, driven by a young, tech-savvy population. Despite challenges such as infrastructure issues like power cuts, the esports scene is growing, showcasing the continent's potential in this emerging market.

Future Trends in Esports AV Equipment

Esports' future is bright with AV advancements like spatial audio, 4K/8K resolutions, and AR/VR technologies revolutionizing viewing experiences. 5G and sustainable practices are set to enhance events further. Modular solutions are emerging, with discussions about portable esports bundles for sponsored events. Esports technology is also expanding into adjacent markets like medical simulation and F1 racing. AV equipment is becoming more versatile, with products that can switch between encoder/decoder roles and offer bidirectional capabilities. Notably, esports' growth is bringing non-traditional decision-makers into the AV world, with teachers and CIOs now influencing choices, expanding AV technology's integration across academia.

Conclusion

Professional AV equipment and system integration is integral to the success of esports, improving both live and online experiences. As technology continues to evolve, the future of esports looks brighter than ever, promising even more immersive and attractive events for audiences worldwide. The ongoing advancements in AV technology will undoubtedly play a central role in shaping the future of this dynamic and rapidly growing industry.

To read more insights and analysis covering ProAV market trends and industry forecasts prepared by Omdia’s ProAV practice, click here.

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Sanju Khatri
Sanju Khatri
Consulting Director

Sanju Khatri leads Omdia’s Consulting Practice for Displays, ProAV, and Consumer Devices. She provides bespoke research and advice to various clients, including display component manufacturers, ProAV and CE device vendors, vertical solution providers, and industry associations. Sanju leverages the expertise of the research, media, and events teams to provide clients with high-quality, customized solutions that yield insights and augment their market presence.

Sanju has over 25 years of experience in market research and strategic consulting. Her work encompasses TAM/SAM/SOM evaluations, go-to-market strategies, end-user surveys, strategic advisory sessions to VC firms, white papers, and webinars. She previously led IHS Markit’s Professional AV team, delivering key technological trends and vertical market insights via custom and syndicated research products. Before this, she demonstrated her expertise as a senior sales analyst at Sega of America and a market analyst at Frost & Sullivan.

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