Discovering new frontiers in the e-sports industry

By Hong Kong Economic Times

E-sports has evolved from a niche form of entertainment to a global phenomenon in the digital age. Over the past decades, it has expanded rapidly and is now widely recognised as a legitimate form of competition.

At the same time, the booming development of e-sports has created new opportunities and challenges for the engineering industry. From hardware optimisation to software development, and from network infrastructure upgrades to user experience design, engineers play an indispensable role in driving the growth of e-sports.

What is e-sports?

E-sports, or electronic sports, refers to competitive video gaming in which professional or amateur players compete individually or in teams through organised leagues.¹

The origins of e-sports can be traced back to the 1970s. However, its rapid growth only began with the widespread adoption of the internet, particularly in the early 21st century.

E-sports is about competitive gameplay that highlights the combination of technology, strategy and skill

Globally, the e-sports market was valued at US$1.72 billion in 2023 and is projected to reach US$9.29 billion by 2032, reflecting a compound annual growth rate of 20.7% from 2024 to 2032, according to Fortune Business Insights². Major events, such as The International or the League of Legends World Championship, continue to attract a strong and consistent viewership.

Key drivers of this growth include increased live streaming of games, rising audience engagement, growing investment in gaming, sponsorships, ticket sales, and the emergence of e-sports as a viable professional career—particularly among young people. For example, data from Statista projects that the global population of e-sports enthusiasts will surpass 318 million by 2025, marking a substantial rise from 215.2 million in 2020.³

E-sports requires hardware infrastructure, including high-performance gaming Personal Computers (PCs), consoles equipped with low-latency peripherals, high-refreshrate Graphics Processing Units (GPUs), liquid cooling systems, and monitors with refresh rates of 240 Hz or higher to ensure real-time feedback. Network technologies such as fibre-optic connections, the User Datagram Protocol (UDP), and edge computing are essential for minimising lag.

Large-scale e-sports tournaments rely on sophisticated venue engineering, featuring high-speed Local Area Network (LAN) setups with 10 GB Ethernet switches, Virtual Local Area Network (VLAN) segmentation, and uninterruptible power supplies to ensure reliable performance. Audio-visual systems, including Light Emitting Diode (LED) walls, projection systems, and surround sound setups, are also indispensable for enhancing both the gaming and viewing experience.

The growth of e-sports as an industry

One of the earliest e-sports events recorded was a tournament for the game Spacewar! held at Stanford University in 1972, where 24 players competed for a year’s subscription to Rolling Stones magazine.⁴

The competitive gaming scene gained traction in the 1980s with the rise of arcade games such as Pac-Man and Donkey Kong. Competitions began to emerge in arcades and local communities, where players competed for high scores to showcase their skills.

Competitions began to emerge in arcades in the 1980s as arcade games grew in popularity

The 1990s marked a turning point for e-sports with the advent of personal computers and multiplayer gaming. Competitive elements were introduced in titles such as Doom and Quake, while real-time strategy games like StarCraft gained immense popularity in South Korea, a country that played a pivotal role in the transformation of e-sports into a recognised industry.

When the 1997 Asian financial crisis stuck the East Asian country, the South Korean government sought to stimulate the economy by investing in internet and telecommunication infrastructure, resulting in widespread high-speed broadband access. It also actively supported the cultural sector, including online gaming and e-sports, laying the foundation for the country’s dominance in the e-sports scene.

In 2000, the South Korean Ministry of Culture, Sports and Tourism established the Korea E-sports Association (KeSPA) with the aim of making e-sports an official sporting event. The association standardised competition rules, organised leagues, issued Programming Licenses for professional players, and ensured fair play.

In 2006, South Korea enacted the Game Industry Promotion Act, a law concerned exclusively with the gaming industry. In 2012, it further introduced the Act on the Promotion of E-sports (Electronic Sports). South Korea was also among the first countries to officially recognise e-sports players as professionals, leading to the establishment of professional gaming leagues and the rise of gaming celebrities.

Significant advancements in the internet infrastructure and personal computing provided a solid foundation for the growth of e-sports. Popular games such as StarCraft and Counter-Strike fuelled the emergence of more professional tournaments. By the 2010s, e-sports had evolved into a fully-fledged industry. Streaming platforms such as Twitch, launched in 2011, enabled audiences to watch live e-sports matches, drawing more people into the ecosystem. The total global prize money across all e-sports tournaments stood at US$ 3 million in 2010 but surged to US$ 121 million in 2017.⁵

E-sports relies on the internet to enable global connectivity, real-time competition, and seamless spectator experiences

A major milestone for e-sports came in 2018 when Jakarta-Palembang Asian Games included it as a demonstration event to assess its viability as a sport, paving the way for its official inclusion in the 2022 Hangzhou Asian Games. A total of seven game titles were featured in the in the Hangzhou competition, marking the growing acceptance of e-sports within the traditional sports community.

In recent years, the Mainland China has become one of the centres of the global e-sports industry.

The Mainland China officially recognised e-sports as a sport in 2003 and since then, nearly 100 official government documents have been issued to regulate and discuss e-sports. According to a report by the Electronic Sports Committee of the China Audio-Video and Digital Publishing Association, the Mainland China is now the world’s largest e-sports market by user base, with approximately 490 million users.⁶ Leading companies such as Tencent and NetEase have also made substantial investments in e-sports games, platforms, and sponsorships.

The “sport” of the digital generation

E-sports is often associated with the digital generation because it aligns with their tech-savvy lifestyle and global connectivity. The digital generation, typically referring to Millennials and Generation Z, has grown up in an environment dominated by digital technology, including the internet, smartphones, and personal computers. From a young age, they have been accustomed to using various digital devices and platforms.

Unlike traditional sports, which emphasise physical ability, e-sports prioritises strategy, skill, and teamwork. It represents a new form of competition that merges the competitive spirit of traditional sports with the digital gaming landscape. For the digital generation, e-sports is more than just entertainment; it has evolved into a cultural domain that reflects their values, lifestyles, passion for technology, sense of community, and love for competition.

Different types of popular e-sports games

(i) Multiplayer Online Battle Arena (MOBA)

• League of Legends (LOL)

Developed and published by Riot Games, LOL is one of the most played MOBA games in the world, with 100 million players every month. It is a fast-paced and competitive online strategy game where two teams of five players battle to destroy the opposing team’s base.

(ii) First-person shooters (FPS)

• Counter-Strike: Global Offensive (CS:GO)

After Conter-Strike became one of the most played online PC action games in the world, Valve Corporation released CS: GO as the fourth installment in the series in 2012. The FPS game emphasises teamwork and precise aiming.

(iii) Battle Royale

• PUBG: Battlegrounds

Published by Krafton in 2017, PUBG: Battlegrounds is a battle royale pits in which 100 players compete against each other. Players land, loot, and fight for surviving in a shrinking battleground, outplaying their opponents to become the last one standing. The game gained popularity for its authentic battlefield and open-world experience.

(iv) Real-time strategy (RTS)

• StarCraft II

Blizzard Entertainment’s iconic RTS allows players to control one of three factions—Terran, Zerg, or Protoss—to gather resources, build armies, and outmanoeuvre opponents in strategic battles.

(v) Card games

• Hearthstone

Developed by Blizzard Entertainment, this game has been a competitive e-sports staple since its release. Players use cards to battle each other using strategy and heroes based on the Warcraft universe.

(vi) Sports and racing games

• NBA 2K

A sports simulation title in which players control characters in a virtual basketball team. The NBA 2K League was launched in 2018 as a joint venture between the National Basketball Association of the United States and Take-Two Interactive. It is a professional e-sports league featuring NBA 2K players and is an official e-sports league operated by a US professional sports league.

(vii) Fighting games

• Street Fighter V

Developed by Capcom, the game allows players to choose from a diverse range of characters to engage in fast-paced, strategic one-on-one battles using combos, special moves, and counterplays. It is a staple of the fighting game community, with tournaments like Evolution Championship (EVO) featuring intense competition.

The ups and downs of Hong Kong e-sports development

Although it remains in its early stages compared to other regions such as the Mainland China and South Korea, Hong Kong’s e-sports industry has seen significant growth in recent years. In 2013, Hong Kong’s inaugural e-sports team was founded, and the city’s inaugural e-sports tournament was held in the same year, attracting 500 viewers. Following this, various e-sports team were formed and the city has since hosted numerous tournaments and e-sports-related events.

Landmark venues such as the Cyber Games Arena (CGA) e-Sports Stadium were established in 2019. Covering an area of 25,000 sq and featuring an 80-person arena, the stadium billed itself as Asia’s biggest e-sports complex at the time. The government also strongly supported the e-sports industry, with then-Chief Executive Ms Carrie Lam Cheng Yuet-ngor attending the opening ceremony of the venue. However, the stadium was closed in January 2023 due to a series of external challenges during the COVID-19 Pandemic, exposing the need for more affordable, well-located and large-scale e-sports venues in Hong Kong.

The HKSAR Government has recognised e-sports as an emerging industry and allocated HK$100 million to promote the early-stage development of the local e-sports sector in the 2018-19 budget. Following this, Cyberport swiftly introduced the E-sports Industry Facilitation Scheme and the E-sports Internship Scheme to support the industry in organising competitions and events while also providing funding support for interns.

Hong Kong also boasts one of the world’s most advanced telecommunication infrastructure. According to government data, by 2019 approximately 4,500 MHz of radio spectrum had been allocated for the deployment of 5G services. Leading mobile network providers began rolling out commercial 5G services in the second quarter of 2020. At present, 5G coverage in Hong Kong exceeds 90 percent of the population.

The city’s telecommunication networks connect to 12 external submarine optical fibre cable systems, with more under construction. It has one of the world’s highest penetration rates of mobile subscribers and household broadband, with around 300 internet service providers licensed across the city.

In the latest World Digital Competitiveness Ranking 2024, published by the International Institute for Management Development, Hong Kong ranked seventh globally.⁸

The successes of Hong Kong players highlight the city’s talent. For example, at the 2018 Asian Games in Indonesia, Hong Kong’s Lo Tze-kin won the gold medal in the first demonstration e-sports event by defeating opponents from other countries in Hearthstone. However, since e-sports is not recognised as an official sport in Hong Kong, he was ineligible to receive the HK$400,000 cash reward granted to other gold medalists under the Athlete Incentive Award Scheme⁷. Similarly, the victory of 16-year-old Cheng Yip-kai, who won the Pokemon GO World Championship in 2024, exposed the ongoing challenge that many Hong Kong gamers must fund their own expenses for overseas competitions. As e-sports is not recognised as a traditional sport in Hong Kong, athletes struggle to secure funding through conventional channels and gain access to professional league development.

Hong Kong offers educational programs such as the Diploma in E-Sports Science and the Bachelor of Business Administration with Honours in Sports and E-Sports Management, provided by The University of Hong Kong (HKU) School of Professional and Continuing Education and The Hong Kong Metropolitan University, respectively. However, the fact that the HKSAR government classifies e-sports as an “innovative technology” presents challenges for talent development. More outreach is needed to engage schools, parents, and sponsors, according to Eric Yeung, President of ESports Association Hong Kong⁹.

Despite the challenges, Hong Kong’s position as a financial hub in Asia gives it a strategic advantage in attracting international tournaments and investments.

To grow its e-sports industry, the city must build an ecosystem that supports global e-sports events and partnerships while allocating more resources to nurture e-sports talent. In Hong Kong, some people continue to perceive e-sports merely as video games and oppose the industry. Additionally, local audiences are also not accustomed to paying to watch e-sports competitions, resulting in a relatively small domestic market.

In May 2024, lawmaker Prof Hon William Wong Kam-fai suggested classifying e-sports under the cultural and sports category to improve public perception of video games. He also proposed establishing a dedicated department to lead and coordinate the overall development of the video games industry, adding that there is optimism for growth particularly following the Hong Kong team’s success in e-sports at the Asian Games^10.

How does E-sports relate to engineering?

Like all sports, e-sports is not just a competition among the athletes as it encompasses a wide array of engineering disciplines and involves a lot of digital technologies. From hardware manufacturing to software development, and from network infrastructure to user experience design, every aspect relies on the expertise and dedication of engineers, whether they work on technical infrastructure, game development or broadcasting technology. The ongoing growth of the e-sports industry presents new challenges and opportunities for the engineering sector.

First, as e-sports requires high-performance gaming PCs, monitors, graphics cards, and other peripherals, engineers can play a crucial role in designing and developing relevant equipment. On the other hand, software development represents a key intersection between e-sports and engineering, as engineers must write code and debug systems to ensure a smooth gaming experience. Morden e-sports games rely heavily on advanced games engines such as Unity and Unreal. These engines not only determine the visual quality of the games but also affect other aspects, including simulation and artificial intelligence. Additionally, software engineers are responsible for developing anti-cheat systems that provide real-time monitoring during e-sports competitions, ensure fair play.

Second, an effective information and communications system is critical for e-sports as it relies on fast, low-latency networks for online matches. A stable network is fundamental to the smooth operation of e-sports competition and a seamless gaming experience. Cloud computing plays a vital role in connecting global players in real time during e-sports events, while storing game recordings and relevant data for analysis.

For example, the proliferation of broadband connections and 5G technology enables seamless online gaming experiences with minimal lag. An Ericsson Mobility Report indicates that 5G networks, combined with edge computing, will allow smartphones to stream games with a quality of experience (QoE) comparable to that of PCs or consoles. Additionally, they will facilitate the development of innovative and immersive mobile games that leverage mobility¹¹.

Third, as technologies such as Virtual Reality (VR) and Augmented Reality (AR) become more in demand to enhance the viewing experience, engineers can work to improve streaming quality and provide audience with multi-angle switching features for a more immersive and interactive viewing experience.

AI and machine learning are increasingly being integrated into the production process, automating repetitive tasks and improving efficiency. This allows game developers to focus on creativity, leading to more immersive player experiences through responsive non-player characters (NPCs) and enhanced content generation.

Furthermore, by collecting and analysing the vast amount of in-game data, engineers can assist e-sports coaches, athletes, and technical personnel in gaining deeper insights into the players’ performances, thereby enabling the development of training plans and adjustment of gaming strategies. The application of machine learning algorithms can also help audiences predict competition results, making events more engaging and exciting.

During the 2023 League of Legends World Championship in Seoul, Riot partnered with Amazon Web Services to integrate machine learning into their broadcast statistics workflow, creating the first calculated statistic for e-sports. This enabled a second-by-second prediction of the probability of each team winning.

Last but not least, engineers play a key role in designing and constructing e-sports venues, such as arenas, gaming cafes, and training facilities. Engineering works can make large-scale e-sports events more energy-efficient and sustainable, helping to reduce their environmental impact. This aspect is crucial, as it directly affects the physical and psychological comfort of athletes and spectators during competition.

Take noise control as an example, as most e-sports tournaments are held in enclosed venues, such as an indoor arenas or stadiums, excessive noise can distract athletes and hinder their communication with coaches if adequate soundproofing or insulation is not in place.

An innovative approach to attracting young engineers

As the sport of the digital generation, e-sports presents a unique opportunity to attract the next generation of engineers by aligning education and career development with the interests and lifestyles of young people who are passionate about gaming.

As mentioned earlier, e-sports relies heavily on technological advancements, and engineering plays a vital role in almost every aspect of the industry. For young people who are enthusiastic about e-sports, understanding the technology behind it can help them appreciate the real-world value of engineering and explore the diverse career opportunities available for engineers in the e-sports industry.

E-sports can also be integrated with STEM education to nurture young talent by developing structured programmes based on STEM learning objectives and creating a balanced approach to gaming and education. For example, encouraging teamwork, which is an essential still in e-sports, fosters a growth mindset and helps students view losses as opportunities for improvement and problem-solving. Incorporating scientific methodologies further enhances students’ analytical skills as they test and refine their strategies in gameplay. More importantly, e-sports in STEM education can provide opportunities to develop technological proficiency, such as filming players, edit videos, and creating software programmes¹².

Integrating e-sports with STEM education can help nurture young talent

The rise of e-sports culture is also transforming perceptions of engineering. It allows more people to appreciate its creativity and innovation. By connecting with e-sports, engineering is seen as a more dynamic and exciting field. For example, schools and companies could work together to organise events like “E-sports Engineer Day.” During these events, students could visit e-sports companies or clubs, attend talks by engineers, and participate in hands-on activities such as designing simple game plugins. These experiences not only teach practical skills but also help students discover their talents in a fun and engaging way.

E-sports has the potential to bridge the gap between the younger generation and the field of engineering, inspiring them to explore and pursue careers in the industry. The rapid growth of e-sports is driving demand for skilled engineers in innovative areas such as hardware design, network optimisation, and immersive technologies. This makes e-sports not only an exciting space for gamers but also a promising frontier for technical exploration and career development.

Conclusion

As e-sports continues to expand globally, its intersection with engineering, technology, and digital innovation will only deepen, creating new opportunities for growth and development. From advancing gaming hardware and network infrastructure to enhancing immersive experiences and fostering talent through STEM education, the industry’s evolution is closely tied to engineering excellence. While challenges remain—such as public perception, funding, and industry recognition—Hong Kong’s strategic position as a financial and technological hub presents immense potential for e-sports. By investing in infrastructure, nurturing talent, and embracing innovation, Hong Kong can solidify its status as a competitive force in the global e-sports landscape, bridging the gap between digital entertainment and professional sports in the modern era.

References

1. ‘Esports’ (2024) in Encyclopædia Britannica. Available at: https://www.britannica.com/sports/esports (Accessed: 17 January 2025).
2. Fortune Business Insights (2025). eSports Market Value, Share, Size, Analysis, Research, Trends. Available at: https://www.fortunebusinessinsights.com/esports-market-106820 (Accessed: 17 January 2025).
3. Statista (2025) ‘Global eSports audience size by Viewer Type 2025’. Available at: https://www.statista.com/statistics/490480/global-esports-audiencesize- viewer-type/ (Accessed: 17 January 2025).
4. Larch F. (2024) Emergence of esports: Once ridiculed, now a billion-dollar market, ISPO.com. Available at: https://www.ispo.com/en/sports-business/esports-history-how-it-allbegan (Accessed: 17 January 2025).
5. Richter F. (2018). Chart: Esports prize money is escalating quickly, Statista. Available at: https://www.statista.com/chart/13922/annual-esports-prize-money/ (Accessed: 17 January 2025).
6. Wang X. (2024). Esports more than just fun and games, Chinadaily.com.cn. Available at: https://www.chinadaily.com.cn/a/202408/01/WS66aae797a3104e74 fddb7ee7.html (Accessed: 17 January 2025).
7. Chin E, Li K and Wu E (2018). Tournament needed for future development of Hong Kong’s esports industry, The Young Reporter. Available at: https://tyr-jour.hkbu.edu.hk/2018/12/10/tournament-needed-for-futuredevelopment- of-hong-kongs-esports-industry/ (Accessed: 17 January 2025).
8. HKSAR Government (2024). Hong Kong rose to rank seventh globally in digital competitiveness. Available at: https://www.info.gov.hk/gia/general/202411/14/P2024111400313. htm#:~:text=Hong Kong rose to rank seventh globally in digital competitiveness&text=In the latest World Digital,three places to seventh globally. (Accessed: 18 February 2025)
9. The Chinese General Chamber of Commerce (2019). ‘Hong Kong’s eSports Industry Poised for Growth’. Available at: https://cgcc.org.hk/en/temp_publication.php?cid=5&sid=72&tid=0&ta bid=0&id=105&cpid=133 (Accessed: 17 January 2025).
10. Liu Y (2024). Measures called for to develop HK’s video game sector, chinadailyhk. Available at: https://www.chinadailyhk.com/hk/article/584208 (Accessed: 17 January 2025).
11. Murphy K J (2021). Ericsson: 5G is the future of eSports and gaming, ericsson.com. Available at: https://www.ericsson.com/en/blog/middle-east-africa/2021/ericsson- 5g-is-the-future-of-esports-and-gaming. (Accessed: 18 February 2025)
12. Raupp A B (2024). Council Post: Esports and STEM education: A 2020 perspective, Forbes. Available at: https://www.forbes.com/councils/forbestechcouncil/2020/04/16/ esports-and-stem-education-a-2020-perspective/ (Accessed: 17 January 2025).