The eSports market in China has rapidly evolved into one of the largest and most dynamic entertainment sectors globally. With a projected market value of $4.6 billion in 2023, China is the largest eSports market in the world, accounting for nearly 30% of global eSports revenues. The country’s passion for gaming, large internet user base, and strong governmental support for digital entertainment have contributed to the rise of eSports as both a mainstream pastime and a profitable industry.

The Chinese eSports market is supported by a thriving ecosystem that includes professional gaming leagues, sponsorships, advertising, live streaming platforms, and a wide range of content creators. In addition to its massive audience, China’s eSports industry benefits from a rapidly expanding youth demographic that actively participates in gaming, both as players and viewers. This growth is also driven by increasing investments from large corporations, major technology companies, and gaming publishers.

This report provides a comprehensive overview of the eSports market in China, highlighting key trends, growth drivers, market segments, major players, and the future outlook for the sector.

Key Drivers of Growth in the eSports Market

Rising Popularity of Online Gaming

The online gaming sector in China has experienced explosive growth over the past decade. As of 2023, China has more than 700 million gamers, with 400 million of them participating in eSports-related activities. Online gaming has become a significant part of Chinese pop culture, particularly among young adults and teenagers. The growing popularity of competitive gaming has led to the rise of eSports as a professional sport, with major tournaments and events attracting millions of viewers.

China is home to some of the world’s most popular video games, including Honor of Kings, League of Legends, and PlayerUnknown’s Battlegrounds (PUBG), which have been central to the development of the country’s eSports ecosystem. These games not only provide entertainment but have also contributed to the professionalization of eSports, creating new career opportunities and avenues for sponsorships and partnerships.

Government Support and Regulation

The Chinese government has actively supported the growth of eSports, both as an industry and a professional sport. In 2019, the State Council of the People’s Republic of China officially recognized eSports as a legitimate sport, which helped elevate the credibility and visibility of the sector. In addition, the government has encouraged the development of eSports infrastructure, including eSports arenas, training facilities, and broadcast studios.

Furthermore, the Chinese government has implemented policies aimed at fostering a responsible gaming culture, including restrictions on gaming hours for minors and a focus on curbing in-game purchases and gambling. These regulations have been seen as a positive step toward ensuring the long-term sustainability of the industry while balancing entertainment with social responsibility.

Technological Advancements and Infrastructure

Advancements in technology, particularly in 5G networks, cloud gaming, and virtual reality (VR), have been crucial in driving the growth of the eSports market in China. High-speed internet connections and better mobile gaming devices have made it easier for gamers to participate in eSports activities and competitions.

China’s infrastructure has been key in supporting the growing demand for eSports content, with live-streaming platforms like Douyin, Bilibili, and Huya providing millions of viewers with access to live eSports events, tournaments, and gaming streams. These platforms have become an integral part of the Chinese eSports ecosystem, generating advertising and sponsorship revenue while helping content creators and eSports organizations grow their audiences.

Cultural Shift and Demographic Changes

China’s younger generation, particularly those between the ages of 18 and 34, has embraced eSports as both a hobby and a potential career path. The rise of gaming as a form of social interaction, entertainment, and even education has helped fuel this demographic shift. 80% of Chinese eSports fans are aged between 16 and 34, a highly desirable target audience for brands and advertisers.

The increasing popularity of mobile gaming has also played a crucial role in the growth of eSports in China. With mobile gaming platforms like Tencent’s PUBG Mobile and Honor of Kings becoming mainstream, eSports has become accessible to a much broader audience, moving beyond the traditionally PC-based sector and into the mobile gaming market.

Market Segments in the eSports Industry

Professional eSports Leagues and Tournaments

Professional eSports leagues and tournaments form the core of China’s eSports industry. These events attract millions of viewers, both live and online, and provide lucrative opportunities for sponsorships, advertisements, and media rights deals.

Major eSports Leagues and Competitions

• Chinese eSports Association (CESA): The Chinese eSports Association is the primary governing body for eSports in the country. It oversees major national tournaments and facilitates collaborations with international organizations. It also helps establish industry standards and promote eSports as a legitimate profession.
• League of Legends Pro League (LPL): As one of China’s most prestigious eSports leagues, the League of Legends Pro League (LPL) has become a major player in the global eSports scene. The LPL has helped establish China as a powerhouse in the competitive League of Legends scene, with millions of viewers tuning in to watch games and follow professional teams.
• Honor of Kings Pro League: Honor of Kings, developed by Tencent, is one of the most popular mobile eSports games in China. The Honor of Kings Pro League (KPL) has attracted massive audiences, with the league becoming a major force in the Chinese mobile eSports ecosystem.
• PUBG Mobile Pro League: The PUBG Mobile Pro League (PMPL) is another key tournament in China’s eSports landscape. PUBG Mobile’s massive popularity in China has led to the creation of a robust competitive scene, with events and tournaments taking place regularly throughout the year.

eSports Event Sponsorships and Advertising

eSports tournaments in China attract significant sponsorships and advertising revenue. In 2023, the total sponsorship and advertising market for Chinese eSports was valued at $1.5 billion, with global brands such as Nike, Pepsi, Coca-Cola, and Samsung investing heavily in the sector. These brands recognize the huge potential of the eSports audience, which has an affluent and highly engaged demographic.

eSports Streaming and Media

Live streaming has become an integral part of the eSports ecosystem in China, providing fans with direct access to their favorite teams, players, and competitions. Platforms like Huya, Douyin, and Bilibili are at the forefront of eSports content streaming, with Huya alone having over 150 million active monthly users in 2023.

Major Streaming Platforms

• Huya: Huya is one of China’s largest live-streaming platforms, specializing in gaming and eSports content. The platform boasts partnerships with major eSports leagues, such as the LPL and the KPL, and has played a critical role in the rise of eSports in China.
• Bilibili: Bilibili, known for its anime and gaming content, has become a major platform for eSports events in China. The platform has a strong following among younger audiences and has partnered with several eSports tournaments and leagues to provide live streaming coverage.
• Douyin: Douyin, the Chinese counterpart of TikTok, has also emerged as a key player in the eSports streaming market. The short-video platform is increasingly incorporating live gaming content, and its integration of live-streaming technology has made it a major competitor to traditional gaming-specific platforms.

Monetization through Streaming

Streaming platforms generate substantial revenue through various monetization strategies, including advertising, subscription models, virtual gifting, and pay-per-view content. In 2023, the revenue from live streaming in the Chinese eSports sector was valued at $900 million, and this number is expected to grow as more users engage with interactive and live content.

eSports Teams and Sponsorships

The eSports team segment plays a significant role in the Chinese eSports ecosystem. Teams compete in various professional leagues, ranging from League of Legends to Dota 2 and PUBG. These teams often have substantial fan bases, leading to sponsorships and endorsement deals with major brands.

Leading eSports Teams in China

• Invictus Gaming: Invictus Gaming is one of China’s top eSports organizations, with teams competing in several major titles, including League of Legends and Dota 2. The organization is known for its success in the global eSports scene, including winning the 2018 League of Legends World Championship.
• Royal Never Give Up (RNG): RNG is another prominent eSports team in China, with teams competing in games like League of Legends, Dota 2, and PUBG. The team is known for its high-profile players and successful international performances.
• Top Esports: Top Esports is a rising star in the Chinese eSports scene, particularly in League of Legends. The team has become known for its skilled roster and strong performances in regional competitions.

Sponsorship and Partnerships

eSports teams in China benefit from sponsorship deals with multinational brands, as well as local companies. These sponsorships include jersey sponsorships, event hosting rights, and partnerships with gaming hardware providers. In 2023, the total sponsorship revenue for Chinese eSports teams was estimated at $500 million.

eSports Gambling and Fantasy Leagues

The growing popularity of eSports in China has also given rise to a market for eSports gambling and fantasy leagues. While gambling regulations in China are strict, eSports betting remains a significant underground industry, with billions of dollars wagered on professional eSports tournaments each year.

Fantasy eSports leagues, where participants create teams and accumulate points based on player performance, are also growing in popularity. These platforms operate in a manner similar to traditional sports fantasy leagues and contribute to the overall growth of the eSports ecosystem.

Major Players in China’s eSports Market

Tencent

Tencent is the dominant player in China’s eSports market. The company owns and operates Honor of Kings, one of the most popular mobile games in China, and has a controlling stake in Riot Games, the developer of League of Legends. Tencent’s extensive portfolio of games, combined with its investments in streaming platforms such as Huya and Douyin, makes it the most influential company in China’s eSports landscape.

NetEase

NetEase is another major player in China’s eSports market, known for publishing games like Knives Out and Identity V. The company operates its own eSports tournaments and is actively involved in the development of mobile eSports, which has gained massive popularity in China.

Huya

Huya is one of China’s leading live-streaming platforms, specializing in gaming and eSports content. The company is a key partner for major eSports leagues, such as the LPL and the PUBG Mobile Pro League, and it continues to grow its presence through exclusive broadcasting rights and strategic partnerships.

Bilibili

Bilibili, originally a platform for anime and gaming content, has become a major player in the eSports streaming market. The platform offers live broadcasts for various eSports events, such as League of Legends, and has secured key broadcasting rights for domestic tournaments. Bilibili has carved out a unique position in the market by appealing to younger audiences with its vibrant community culture.

Alibaba

Alibaba, through its AliSports division, has invested heavily in the eSports market. AliSports has been involved in the organization of several major tournaments and is increasingly focused on the business side of eSports, including sponsorships, marketing, and content creation.

Future Outlook for the eSports Market in China

Growth in Mobile eSports

Mobile gaming and mobile eSports are expected to continue growing in China, driven by the increasing popularity of games like Honor of Kings and PUBG Mobile. In 2023, mobile eSports in China generated more than $1 billion in revenue, and this market is expected to expand significantly over the next few years, with mobile games likely to dominate the global eSports scene.

International Expansion

As China’s eSports industry matures, its influence is expanding internationally. Chinese eSports teams are becoming increasingly competitive in global tournaments, and Chinese companies are exporting their eSports technology and expertise to other regions. The rise of Chinese gaming giants like Tencent and NetEase is likely to further fuel the global expansion of eSports.

Integration with Other Entertainment Sectors

eSports is expected to become more integrated with other entertainment sectors, including music, movies, and virtual reality. As eSports grows into a mainstream form of entertainment, partnerships between gaming companies and traditional entertainment industries are likely to become more common, leading to new and innovative experiences for fans.