Industry Market Growth Trends for Esports
Global investors, corporations, and media outlets are all keeping an eye on how competitive video games are continuing to permeate popular culture. Customers are also. In fact, according on our projections, there will be 29.6 million monthly esports watchers in 2022, an increase of 11.5% from 2021.
The surges in esports investments and revenue have been fuelled in part by the pop-culture and impact of the sector. One of the main factors contributing to the success of esports is the social component of live streaming and games.
Fans can interact directly with players and teams through video game-specific streaming services like Twitch and YouTube Gaming, while more widely used social networks have fostered these relationships. Some esports groups, like FaZe Clan, are aggressively expanding into markets like clothing, giving their companies greater recognition than if they had only focused on esports.
In a discussion with Insider Intelligence, Rick Yang, a partner at NEA, a venture capital company that invests in esports, emphasized this: “I seriously believe of esports as the popularization of gaming, or the pop culture initialization of gaming, versus the pure idea of these players to become professionals to start competing at the highest levels.”
In order to see prospects beyond gaming events alone, it is crucial to think about the esports possibility in this way—one that incorporates pop culture, gaming, media, and business.
Industry Revenue Stream Statistics for Esports
As a result, venture capitalists and, more lately, private equity firms have significantly increased their involvement in the sector. According to Deloitte, there were 68 esports investments in 2018 compared to 34 in 2017. The sum of the investments also reflects that: According to Deloitte, investments increased to $4.5 billion in 2018 from just $490 million the year prior, a startling YoY growth rate of 837%.
These investments are dispersed among participants in the ecosystem, including esports tournament organizers, organizations, and digital broadcasters, enabling it to operate and develop. As a result, esports has evolved from its arcade gaming origins to become the sophisticated digital environment it is today.
Teams in Esports and Advertising
Esports teams have owners, franchises, sponsorship agreements, financial prizes from tournament victories, and more, just like regular professional sports teams, all of which contribute to their annual revenue and overall valuation. Esports leagues will likely restart their efforts to grow their fans once the plague has passed by holding live gameplay with local esports teams in a manner that more closely resembles traditional sports leagues.
According to Forbes, the top five esports teams as of 2020 are:
TSM – Value: $410 million
- Estimated Revenue: $45 million
- Revenue from Esports: 50%
- Owner: Andy Dinh
Cloud9 – Value: $350 million
- Estimated Revenue: $30
- Revenue from Esports: 70%
- Owners: Jack and Paullie Etienne
Team Liquid – Value: $310 million
- Estimated Revenue: $28 million
- Revenue from Esports: 89%
- Owners: aXiomatic Gaming, Victor Goossens, Steve Arhancet
FaZe Clan – Value: $305 million
- Estimated Revenue: $40 million
- Revenue from Esports: 20%
- Owners: Lee Trink, Richard Bengston (FaZe Banks), Thomas Oliveira (FaZe Temperrr), Yousef Abdelfattah (FaZe Apex), Nordan Shat (FaZe Rain)
100 Thieves – Value: $190 million
- Estimated Revenue: $16 million
- Revenue from Esports: 35%
- Owners: Scooter Braun, Matthew Haag, Drake, Dan Gilbert
Learning About the Esports Ecosystem:
According to most predictions, the esports industry will finally generate more than $1 billion this year. The revenue is also anticipated to increase from here; according to Newzoo, it will reach $1.8 billion by 2022. Media rights, live event ticket sales, item sales, and in-game purchases all bring in money for esports, but according to Newzoo data cited by Statista, sponsorships and advertising account for the majority of revenue (69%) in the industry.
This expanding source of income is international:
- The top three esports markets in terms of audience and revenue are successively Asia-Pacific (APAC), North America, and Europe. According to Newzoo, APAC will watch more esports than any other region (57%) in 2019, up from 51% in 2017. Esports revenue is predicted to exceed $300 million in North America this year and $138 million in Europe, according to estimates from PwC.
- Although the revenue from esports in the rest of the world only makes up around 15% of the total, there are still many interesting places to watch. Latin America is one of the fastest-growing regions, with PwC forecasting that its esports revenue will reach $18 million in 2019 and soar to $42 million by 2023.
- Mobile is likely to be the industry’s driving force in the future, lowering entrance barriers and allowing an influx of new players and spectators. This year, 45% of the entire global games market is expected to come from the mobile gaming sector. Since China already has a strong mobile esports industry, that popularity is already leaking over into some competitive spaces.
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