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 offers targeted exposure to the gaming ecosystem driving global eSports expansion.

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 will 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 2025, 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 revenue. 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 tournaments. Sub-30ms ping on 5G makes that possible.
• Access in underserved regions: Southeast Asia and Latin America are rapidly adopting mobile eSports, leapfrogging the need for consoles or high-end PCs.
• XR/AR venues and real-time experiences: 5G powers cloud-rendered immersive experiences that were previously limited by bandwidth and jitter.

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 expansion.

What this means:

• Casual gamers become active participants.
• Subscription models replace single-game sales.
• Publishers recoup development costs faster with broader day-one access.

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.

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.

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) offers:

• 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.

The portfolio includes leading game developers, platform operators, and infrastructure providers, all positioned to 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 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. ESPO offers a focused exposure into that growth.

To receive more Thematic Investing insights, sign up in our subscription center.