BEIJING, July 5 (Xinhua) -- No dull rows of chairs and tables, no endless slides of charts and numbers -- instead, a gleaming statue of Hermes, the Olympian god of competition and the "god of esports," took center stage, while a virtual concert "on Mars" blazed across a giant screen in the background.

Standing out among the meeting venues at the 2025 Global Digital Economy Conference, this hall hosted one of its headline events, the International Esports Development Forum, where industry leaders and players gathered to explore how esports is transforming entertainment and fueling growth in the global digital economy.

Industry observers believe that esports has grown into an emerging industry that can no longer be ignored, with more and more traditional sports events now including esports competitions.

At the 19th Asian Games in Hangzhou, for example, esports made its debut as an official medal event, where the Chinese team took home four gold medals across seven categories.

The 20th Asian Games in Japan's Aichi-Nagoya in 2026, will expand esports events even further, featuring 11 disciplines including Pro Evolution Soccer and League of Legends. Meanwhile, the International Olympic Committee has announced that the first Olympic Esports Games will be held in Saudi Arabia in 2027.

The intensity, the focus, and the sheer will to win that esports players exhibit are no different from other athletes, according to Nicholas Khoo, advisor to the Board of Directors of the Global Esports Federation.

Khoo called the rise of esports "unstoppable," with growing public attention and an expanding global market adding fresh momentum to the development. At the same time, the inclusion of esports in the event systems of the International Olympic Committee is further promoting the sport's healthy growth.

"Esports today is driving the digital economy, which stays as a primary engine of global growth," said Irina Bokova, former director-general of UNESCO, at the forum. "Within this ecosystem, esports is rapidly emerging as a transformative force. It is redefining the boundaries between entertainment sports and technology while forging connections that transcend international borders and linguistic barriers."

Participants noted that China boasts the world's largest esports market, leading globally in both player base and industry growth potential.

According to the 2024 China esports industry report released by China Audio-video and Digital Publishing Association, the number of esports users in China reached 490 million in 2024, up 0.42 percent year on year, marking the largest esports user base in the world. Meanwhile, the industry's actual sales revenue stood at 27.57 billion yuan (about 3.85 billion U.S. dollars) in 2024, an increase of 4.62 percent from the previous year.

That scale is powered by new technology. According to Li Ji, an industry analyst, today's esports industry is built on a fully digital foundation, seamlessly integrating frontier technologies, from computing power to algorithms and artificial intelligence, and stands as a model of cross-sector innovation.

"Esports is becoming a testing ground for cutting-edge innovations such as network communications, augmented reality and artificial intelligence," said Li Xiaolei, vice chairman of the China Culture Administration Association. "From the perspective of culture, through innovative storytelling and character-based performances, esports is taking Chinese stories to the world in a way that resonates with young people."

Highlighting the great potential of the sector, Li Xiaolei said that China's esports market size is expected to surpass 300 billion yuan in 2026, driving the scale of related industries beyond 1 trillion yuan, becoming an important growth driver of the digital economy.

According to the global esports industry development report co-released by an institute under China Media Group (CMG) and China's esports giant Tencent, four Chinese cities, Shanghai, Beijing, Chengdu and Shenzhen, ranked among the top ten on the global esports city influence index. He Wenyi, secretary-general of the national sports industry research base at Peking University, noted that policy support will be essential to foster new business models as the industry evolves.

China's cities are already well-positioned to tap into this promising industry. Ranking first on the esports city influence index list, Shanghai proposed the vision of becoming a global esports capital in 2017. In 2019, the city issued 20 measures to promote the healthy development of the esports industry.

The Chinese capital is another major player. In June this year, Beijing issued measures to support the high-quality development of its gaming and esports industry. These measures aim to support enterprises in game development and publishing within Beijing, while promoting industrial clustering domestically and encouraging companies to expand overseas.

"Beijing will fully leverage its strengths in technological innovation and international exchange to develop the esports industry into a key engine for building itself into a benchmark city in the global digital economy," said Xu Xinchao, deputy secretary general of the Beijing municipal government.

While esports is booming in China, the industry faces many challenges. A report from a research institute under People.cn found that many tournaments and clubs remain heavily dependent on sponsorships and prize money, leaving them vulnerable in economic downturns. Experts also caution against blind expansion without thoughtful planning. Cities often adopt similar strategies without leveraging their unique strengths, risking repetitive and uncompetitive development.