The esports industry is taking the world by storm and has also become a full-time job for many professional gamers – which is great. A whole new industry in which we get to immerse ourselves. The industry has produced countless competitions that make it highly competitive yet exciting. You will even find a BetMGM sportsbook dedicated to esports, which truly puts the industry on the global map. In that breath, let’s look at some market stats and growth forecasts for the esports industry.
Market growth trends
There is no denying that esports has slowly crept into popular culture. Big global brands and media outlets have played a significant role in making this a reality. And since the industry is highly competitive, more and more consumers are jumping on board. If we look at 2022 viewership alone, esports viewership is sitting at 29.6 million in the US. This was an 11.5% increase compared to 2021. So, there is steady growth which has been influenced by pop culture that is driving these figures.
Live-streaming video games has become extremely popular and draws in loads of revenue. Platforms like Twitch and YouTube Gaming give fans exactly what they want. You can watch multiple esports tournaments and keep track of your favorite professional gamer as well. Connecting fans and players has proved vital in making this industry a success. Then there’s merchandise. There’s been an uptick in merchandise sales since fans want to feel like they are a part of the industry without actually being pro gamers. Rick Yang, partner at NEA—a venture capital firm that invests in esports said this in an interview: “I actually think of esports as the mainstreaming of gaming or the pop culture instantiation of gaming versus the pure idea of these players becoming professionals to compete at the highest levels.”
What revenue is saying
Look, no matter the industry, the idea is always to generate enough revenue to keep said industry going. And with esports, this is true. There’s been a massive uptick in investment from venture capitalists and private equity firms. This was clear all the way from 2018. During this year, investments doubled. In that same year, the year-on-year growth was estimated to be around 837%. In 2022, the global esports market will be valued at $1.38 billion.
How esports teams are advertising
A large part of the market growth is due to esports teams, and this is all due to advertising and marketing. So how do teams do it? Well, just like any big brand or company, esports teams have owners, franchises, endorsement deals, and even cash prizes from winning tournaments – which is arguably the most important aspect. Teams work hard to expand their audiences to remain relevant while consistently winning tournaments. Some of the top esports teams include:
- TSM
- Cloud9
- Team Liquid
- FaZe Clan
- 100 Thieves
Key trends
There are important key trends we need to keep an eye on. These are the ones that are largely responsible for revenue increases year-on-year.
- Revenue generated for the industry is largely due to advertising. But what does this advertising include? Well, ad breaks during live streams, esports TV, and even on-demand video content for esports.
- There are top esports video games that are dominating now. These include Dota2, Fortnite, League of Legends, CSGO Overwatch, and Global Offensive. While fans aren’t necessarily playing the games themselves, they are firmly streaming professional gamers who do.
- Investors have noticed the increase in popularity among fans. And thus, they are investing increasingly in the industry. Gamers have fans to thank for this.
- Of course, we should have expected some form of formal education to take the lead in this industry. Ohio State University, Becker College, and Shenandoah University now offer esports degrees. This is revolutionary. But that’s not all. At over 100 schools across the US, gaming competitions are being offered. If you happen to be one of the top six players, you will be offered a scholarship to the University of California.
Some quick figures
The esports media revenue worldwide is expected to:
- Grow to $553.43 million by the end of 2022
- Grow to$815.32 million by the end of 2023
These figures are staggering but exciting. The industry is here to stay, and we are excited to see how the market will grow in the coming years.
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