The Rise of Regional Esports Powerhouses

How SEA, MENA, and LATAM Are Shaping the Future of Competitive Gaming

Introduction

As the esports industry advances toward 2026, a seismic shift is underway beyond the traditional strongholds of North America and Western Europe. Emerging regions—specifically Southeast Asia (SEA), the Middle East and North Africa (MENA), and Latin America (LATAM)—are rising as esports powerhouses, carving out significant roles in shaping the competitive gaming landscape. These regions are not just expanding their audiences; they are redefining how esports is perceived, played, and monetized globally.

A New Era for Esports: Regional Growth

In recent years, global esports revenue estimates have hovered around $1.0–$1.4 billion. This growth reflects a broader geographical audience expansion, with SEA, MENA, and LATAM driving significant viewer engagement. This transformation is primarily supported by robust mobile-first ecosystems, which facilitate access to esports across socioeconomic barriers.

SEA: A Mobile Gaming Stronghold

SEA has been a pioneer in embracing mobile esports, reflected in its domination by titles like Mobile Legends: Bang Bang (MLBB) and PUBG Mobile. These games have leveraged multilingual production and national leagues, such as the Mobile Legends Professional League (MPL), to reach multi-million viewership peaks. Such dedication to mobile esports has not only increased participation but has also fostered a vibrant local-language coverage scene.

MENA: Fueled by Investment and Youth

MENA, meanwhile, is experiencing a rapid rise fueled by substantial financial investments and a young, tech-savvy population. The region’s engagement is predominantly driven by mobile games and significant initiatives like Saudi Arabia’s Esports World Cup, which has already impacted global esports scheduling and investment flows with its $60 million prize pool.

LATAM: Passionate and Expanding

LATAM has demonstrated high engagement levels with games such as Valorant, League of Legends, and Free Fire. The region’s fervent fanbase, characterized by co-streams and creator engagement, has helped expand its reach across different languages and cultures. This vibrant scene continues to thrive despite various regulatory challenges.

Economic Foundations and Emerging Models

The economic models underpinning esports in these regions are evolving. Historically reliant on sponsorships, the industry is now embracing a revenue-share digital ecosystem, which includes co-streaming and direct-to-fan monetization strategies. This pivot is paving the way for newer revenue streams and sustainable financial models.

Sponsorships, Co-streaming, and Digital Revenue

While sponsorship remains a critical revenue source, the industry’s shift towards delivering value through multiple platforms is noteworthy. Co-streaming has emerged as a crucial driver of reach, particularly in regions where traditional media infrastructure lags. Moreover, direct-to-fan interactions through digital items, such as team capsules and in-game branding, are becoming significant economic influencers. Riot Games’ Team Capsules in Valorant, sharing 50% of the revenue with teams, exemplify this trend.

Publisher Strategies: Partnership vs. Open Circuits

Esports publisher strategies have differentiated into two main models: curated partnership leagues and open circuits. The former, championed by Riot Games, emphasizes revenue-sharing items and league partnerships. This model provides stability and ensures IP control. In contrast, Valve champions the open circuit model, reducing fixed costs and fostering third-party organizer diversity.

Regional Audience Dynamics

The demographics of esports audiences in these emerging regions present promising trends. Predominantly Gen Z and young millennials, these audiences are helping to drive growth through digital engagement and community interaction.

Global Viewership Trends

Twitch remains the dominant platform with 21 billion hours of watched content in 2023, but YouTube Gaming and TikTok Live are rapidly expanding their footprint, especially in emerging regions. YouTube’s strength lies in VOD and regional live rights, while TikTok Live complements traditional streams with short-form content and native commerce.

Growing Engagement with Women’s Esports

Women’s esports is witnessing a significant boost, with initiatives like the Valorant Game Changers Championship and ESL Impact creating pathways and enlarging the fan base. The increase in women’s engagement is helping diversify esports demographics and sponsorships.

Conclusion

The rising prominence of SEA, MENA, and LATAM in the esports world signals a broader shift in the industry. These regions are not only increasing global audience reach but also transforming the economic landscape through innovative revenue models and strategic investment. As the esports scene continues to evolve, regions that align their strategies with audience geographies and embrace mobile-first ecosystems will likely lead the next decade of competitive gaming.

Esports’ future hinges on the ability of all involved to translate engagement into a sustainable economic model that balances global tentpoles with dynamic regional competitions. The industry’s next phase will likely reward those who seamlessly integrate cutting-edge innovations—like AI and low-latency streaming—while fostering robust local ecosystems through strategic investments and inclusive practices.