The Luxembourg esports market: Let’s Play! 2021


The Luxembourg esports market: Let’s Play! 2021

An esports ecosystem attracting a variety of stakeholders: steady growth despite COVID-19, but yet a lot of untapped potential

Since the Luxembourg esports Federation (LESF) was created and Post and 11F Luxembourg organised the first Post esports League in 2020, the Luxembourg esports ecosystem has maintained its steady growth. Overall, 2021 has been marked by an increase in tournaments, number of partners involved, and offers to esports consumers. Indeed, this year has already witnessed memorable achievements like—among others—the second edition of the successful tournament by Post and 11F Luxembourg, the creation of two new tournaments such as the Orange eLeague tournament and the Tango High-School Cup, the establishment of new events and fora for esports consumers, and the arrival of new partners within the ecosystem. Despite these positive and exciting trends—particularly remarkable in times of COVID-19—the esports ecosystem in Luxembourg still holds untapped potential and seeks recognition as an official sport by the Ministry of Sport and the national Olympic committee (Comité Olympique et Sportif Luxembourgeois).

Telco actors join the game, while the playing field widens

While esports is still lacking official recognition in Luxembourg, existing and potential stakeholders have kept busy this year, with new actors joining the playing field.

The Post esports League, which was first organised in 2020 by the gaming group 11F Luxembourg, held its second edition in 2021 around FIFA, Clash Royale and League of Legends under the new name of Post esports Masters. This year saw a boost in partners compared with 2020, building a total prize pool of EUR20,000. Another novelty compared with the tournament’s first edition was that the best matches were streamed and broadcasted with commentary on Twitch throughout the competition. Participants included both professional and amateur players, with some new teams taking part that had just been founded during the COVID-19 pandemic (e.g., Team Game Changer, which was formed in June 2020).

Another Telco actor joined in the fun—the inaugural Orange eLeague tournament was launched with a EUR5,000 prize pool. With gamers representing 32 football clubs in the first two divisions, this was a chance to not only show that Telcos are key partners of the esports ecosystem, but also that traditional sports and esports can team up for positive results—with the Luxembourg esports Federation and the Luxembourg Football Federation coming together to support Orange in this tournament.

Tango, keen to not miss the party, organised the Tango High-School Cup together with the esports organisation 4Elements esports, a first-of-its-kind inter-school esports tournament. It included Fortnite and Brawl Stars and offered a total prize pool of EUR10,000.

But Telcos are not the only stakeholders interested in the opportunities offered by the esports sector. Investors are also increasingly recognising its potential, with business associations like the Luxembourg Private Equity Association (LPEA) putting on events to raise awareness for professionals and investors about the sector’s business opportunities.

These trends raise the hope that the Luxembourg esports market is on the right track, despite still not being recognised as a sport. Official recognition would enable esports actors to more effectively and consistently face existing challenges, such as the lack of a unified regulatory framework, the need for a sustainable financing model, and the dependency on game developers.

esports finds its place among consumers thanks to other communities

Consumers have more opportunities than ever to discover and enjoy esports, thanks to positive interactions with other communities. For example, the esports, gaming, and geek communities have found a common place at the new esports and gaming bar “Respawn”, as well as at the “Geek Foire” held this year.

Offering consumers new opportunities allows endemic and non-endemic esports actors to appeal to an attractive, young and well-off audience. As shown in the “Let’s Play! 2021 – The European esports Market” Report, 25% of occasional esports consumers across 15 selected European countries are Generation Z (16-25 years of age), which rises to 27% among hardcore consumers.

If we account for millennials (26-40 years of age) that already occupy 33% and 48% of occasional consumers and hardcore consumers respectively, it is clear the future talent pool will increasingly be composed of esports aficionados. Not being able to “speak” authentically to this demographic will exclude companies from this digitally native, vocal and value-conscious audience.

When COVID-19 brings you down, get back up!

COVID-19 had an undeniable impact on the esports sector. Stakeholders scrambled to find new solutions, like the Luxembourg Gaming Experience going online in 2020. Still, when traditional sports were forced to be put on pause, esports consumers, investors and professionals reacted positively and constructively—which is clear from the arrival of new tournaments and stakeholders, plus the tapping of new opportunities.

Going forward, the challenge will be to ensure the newly arrived stakeholders—such as partners, clubs and other establishments—remain engaged to continue enriching the Luxembourg esports ecosystem in its journey towards full recognition.

The European esports market

The 6th edition of the Deloitte study 'Let's Play! - The European esports market' focuses on the economically sustainable development of the European esports sector. The study was based on extensive consumer research and numerous expert opinions. In addition, there are 13 country profiles that outline the current state of the esports sector in different European markets.

To download the full report, click here. For the individual country profiles, navigate via the map of Europe.

Deloitte offering and country contacts

The Deloitte Sports Consulting initiative is the go-to-partner for esports industry stakeholders, who are eager to seek out new opportunities in this growing industry. Thanks to our local industry knowledge and vertical capabilities, and coupled with a strong collaboration with specialists within our network, we can support you with an end-to-end approach—from building market knowledge, defining your strategy and identifying financing opportunities, reviewing your processes and operating model, to supporting you in new technology journeys.

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