Esports Sponsorships to Grow 20%, Surpassing $1.2B by 2029

Global spending on esports sponsorships and advertising has nearly tripled over the past seven years, rising from $340 million in 2017 to around $980 million in 2024. Although annual ad spending growth has slowed sharply from the 2020 peak, now at just one-third of the levels seen five years ago, esports sponsorships are still on the verge of a major milestone- becoming a trillion-dollar industry this year. And the growth won`t stop there.

According to data presented by Skinsluck.com, esports sponsorships are projected to grow by another 20% and hit a massive $1.2 billion value by the end of the decade.

Esports Ad Spending to Grow by $50M a Year Through 2029

Competitive gaming attracts a massive audience, and esports sponsorship and advertising have surged alongside it. According to Statista Market Insights survey, the global esports audience has doubled in just five years, growing from 385 million in 2017 to a projected 770 million as of this year. This huge user base is major draw for brands looking to promote through esports, and the driving force behind esports sponsorships growth.

Just five years ago, brands and companies spent around half a billion dollars on esports promotions and sponsorships. By 2022, that figure had swelled to nearly $800 million, even as growth rates began to slow. Since then, annual spending on esports sponsorships and ads has increased by another $200 million and is expected to hit $1.05 billion this year.

However, the yearly ad spending growth rate has more than halved in this period, falling from roughly 16% to only 7%. Despite the obvious slowdown, brands and companies will continue adding around $50 million in new spending each year, pushing total esports ad and sponsorship revenue to $1.2 billion by 2029.

More than half of that value will come from the United States and China, global esports powerhouses. China, home to the largest esports audience of over 400 million, massive domestic tournaments, and some of the industry’s biggest global events backed by strong government support, will spend around $300 million on esports sponsorships in 2025. By 2029, this figure is projected to hit nearly $330 million. The United States will see a similar growth, with ad spending rising from $205 million to $232 million in this period. South Korea, Germany, and Spain round the top five countries with $162 million, $110 million, and $49 million in total spending by 2029, respectively.

Sponsorships Generate 6x the Revenue of Streaming and 2.5x the Media Rights

The sheer scale of esports sponsorships becomes even clearer when compared to other industry segments. With $1.2 billion in revenue by 2029, sponsorships will remain the market`s second-largest revenue source, trailing only esports betting at $3.4 billion. However, that also means that esports sponsorships and advertising alone will generate two and a half times more revenue than media rights ($498 million), nearly four times more than merchandise and ticketing ($354 million), and six times more than esports streaming ($196 million) by 2029.