In a recent article, we discussed the policies and regulations in the esports industry in China. An emerging and relatively niche market, esports has gained in popularity among the younger demographic, generating millions in revenues. In this article, we explore the opportunities and risks in the industry.

Esports market in China at a glance

Esports, short for electronic sports, is a kind of competition based on video games. It has gained in popularity across the world since the 2000s as internet access has widened, turning a leisure hobby into an industry that’s worth billions. In 2022, global esports tournaments have been expected to rake in US$1.4 billion in revenue and the figure may grow to US$1.9 billion by 2025.

China is the largest single-country market in the world, fueled by the growth of Chinese consumers’ purchasing power, as well as Chinese tech giants’ investments that have spurred gaming entertainment. In 2021, China’s esports market size was about RMB 167.3 billion, according to iResearch. China also has the highest number of active esports players and tournament viewership thanks to new technologies with mobile devices and live streaming.

According to the Ministry of Human Resources and Social Security, in 2019 there were more than 5,000 esports teams and clubs in China, with about 100,000 professional esports players and a total of 500,000 people employed in the industry. China Audio-video and Digital Publishing Association (CADPA) reported a…