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Esports Investing: How 5G, AI & Cloud Gaming Are Driving Growth
19 August 2025
Read Time 4 MIN
With innovations like AI and cloud gaming reshaping the esports ecosystem, investors could have new potential opportunities tied to audience growth and tech-fueled monetization.
Tech like 5G, AI, and cloud gaming is redefining eSports by lowering entry barriers, increasing engagement, and accelerating industry growth.
- 5G is powering mobile eSports growth, enabling low-latency play and access in emerging markets.
- Cloud gaming removes hardware barriers, expanding access and accelerating monetization via subscriptions.
- AI boosts efficiency and engagement, from faster game development to personalized, fair gameplay.
ESPO (VanEck’s Video Gaming and eSports ETF) offers targeted exposure to the gaming ecosystem driving global eSports expansion.
Main Risk Factors:
- Equity market risk
- Industry or sector concentration risk
- Risk of investing in smaller companies
Investors must consider all the fund's characteristics or objectives as detailed in the prospectus or related documents before making an investment decision.
Tech Catalysts Powering the Next Wave of Video Game Expansion
The future of eSports and video games isn’t just about better graphics or faster reflexes; it’s about how emerging technologies like 5G, cloud gaming, and artificial intelligence (AI) are reshaping the very infrastructure and monetization models of the industry. These shifts are more than speculative; they’re actively changing how games are played, distributed, and monetized, paving the way for significant expansion in both reach and revenue.
For investors, understanding these tech tailwinds is key to evaluating where growth could come from and who stands to benefit.
The eSports Backdrop, Scale Meets Structural Change
The core eSports audience is expected to surpass 318 million global fans by 20251, up nearly 13% year-over-year. But perhaps more important than fanbase size is the changing nature of how people play and pay.
Grand View Research forecasts the global eSports market to grow at a 23% CAGR through 2030, reaching over $7.5 billion in annual revenue2. Unlike traditional entertainment, this market is shaped not only by content, but also by the infrastructure and platforms that enable new ways to play.
Catalyst #1: 5G – Enabling the Mobile eSports Economy
5G isn’t just about faster downloads; it’s about low latency, edge processing, and consistent performance across mobile networks. These capabilities unlock:
- Mobile-first competitive play: Games like Honor of Kings and PUBG Mobile are already headlining eSports tournaments3. Sub-30ms ping on 5G makes that possible4.
- Access in underserved regions: Southeast Asia and Latin America are rapidly adopting mobile eSports, leapfrogging the need for consoles or high-end PCs5.
- XR/AR venues and real-time experiences: 5G powers cloud-rendered immersive experiences that were previously limited by bandwidth and jitter.
However, the rollout of 5G also carries risks—uneven global infrastructure buildout, high capital costs for carriers, and potential fragmentation across networks could delay or limit the full realization of these benefits.
5G Mobile Subscriptions Globally 2019-2030*
Source: Ericsson, as of 11/2024. For illustrative purposes only. Not intended as a forecast or prediction of future results. *Projected estimates.
Catalyst #2: Cloud Gaming – Lowering the Barrier to Entry
Cloud gaming is removing hardware constraints from high-end gaming. Players can now access AAA titles on low-spec devices via mobile gaming platforms. Forecasts suggest the cloud gaming market will grow from $2.3 billion in 2024 to over $21 billion by 2030, a nearly 10x expansion6.
What this means:
- Casual gamers become active participants.
- Subscription models replace single-game sales.
- Publishers recoup development costs faster with broader day-one access.
Still, risks include high dependency on stable broadband infrastructure, latency sensitivity for competitive titles, and uncertainty around consumer willingness to sustain multiple gaming subscriptions.
Subscriber Count of Leading Cloud Gaming and Gaming Subscription Services in 2025
Source: Sony, Nintendo, Microsoft, Electronic Arts, PC Magazine, Statista, as of 06/2025. For illustrative purposes only.
ESPO provides exposure to key cloud gaming enablers including game publishers, infrastructure providers, and monetization platforms all positioned to benefit from the accessibility and recurring revenue models cloud gaming enables. However, investors should note the risks associated with this fund, notably the equity market risk, industry or sector concentration risk and risk of investing in smaller companies.
Catalyst #3: AI – Unlocking Monetization & Efficiency
AI is transforming the development, personalization, and competitive integrity of games. Game studios are increasingly using generative AI tools to accelerate asset creation and dialogue writing, cutting development cycles and costs. AI-powered assistants are being embedded directly into games to offer real-time coaching, gameplay analysis, and difficulty adjustments that keep players engaged. On the competitive side, advanced anti-cheat systems powered by machine learning are preserving the fairness and integrity of eSports tournaments a critical factor in attracting sponsors and media partners.
Gen AI Tool Usage in Select Areas of Game Development in 2025
Source: Konvoy, Statista, as of 03/2025. For illustrative purposes only.
Companies included in ESPO integrate AI across content creation, player personalization, and integrity tools, enabling both cost efficiencies and new monetization paths within the gaming ecosystem. Investors should keep in mind the risks associated with this fund as described above.
The Investment Case for Video Gaming and eSports
With structural catalysts in motion, the question becomes how to invest in this transformation.
VanEck’s Video Gaming and eSports ETF (ESPO) offers7:
- Pure-play exposure to companies deriving >50% of revenue from video gaming and eSports.
- Focused diversification across 25–30 companies, reducing single-name risk.
- Direct participation in technologies driving growth across mobile, cloud, and AI.
- Main Risk Factors: Equity market risk, industry or sector concentration risk, risk of investing in smaller companies. Investors must consider all the fund's characteristics or objectives as detailed in the prospectus or related documents before making an investment decision.
The portfolio includes currently major game developers, platform operators, and infrastructure providers, all positioned to potentially benefit from a broader player base, recurring revenue models, and more efficient content creation.
Don’t Bet on One Platform, Own the Ecosystem
As 5G, cloud gaming, and AI reshape the gaming landscape, investors don’t need to guess which title will be the next Fortnite or which platform will win the cloud gaming wars.
Instead, the opportunity potentially lies in owning the ecosystem: the publishers, platforms, and monetization engines behind this evolution.
eSports is no longer niche; it’s a technology-powered media format with global scale, sticky user engagement, and expanding monetization paths. At the same time, investors must weigh risks such as regulatory uncertainty, shifting consumer behaviors, and the possibility that rapid technological change could disrupt even dominant players in the space.
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1 Dimension Market Research, July 2025.
2 Grand View Research, April 2025.
3 esports.gg, January 2025.
4 SimRush, August 2023.
5 Grand View Research, April 2025.
6 Grand View Research, April 2025.
7 Underlying Index: MarketVector Global Video Gaming and eSports ESG Index (MVESPGTR)*.
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*VanEck Video Gaming and eSports UCITS ETF (the "ETF") is a sub-fund of VanEck UCITS ETFs plc, an open-ended variable capital umbrella investment company with limited liability between sub-funds. The ETF is registered with the Central Bank of Ireland, passively managed and tracks an equity index. The product described herein aligns to Article 8 Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Information on sustainability-related aspects pursuant to that regulation can be found on www.vaneck.com. Investors must consider all the fund's characteristics or objectives as detailed in the prospectus, in the sustainability-related disclosures or related documents before making an investment decision.
MarketVector™️ Global Video Gaming & eSports ESG Index is the exclusive property of MarketVector Indexes GmbH (a wholly owned subsidiary of Van Eck Associates Corporation), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MarketVector Indexes GmbH (“MarketVector”), Solactive AG has no obligation to point out errors in the Index to third parties. VanEck’s ETF is not sponsored, endorsed, sold or promoted by MarketVector and MarketVector makes no representation regarding the advisability of investing in the ETF. Effective December 16, 2022 the MVIS Global Video Gaming and eSports Index has been replaced with the MarketVector™️ Global Video Gaming & eSports ESG Index. It is not possible to invest directly in an index.
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This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.
This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).
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