The esports industry is set to generate $1.1bn in revenue in 2020, according to analytics firm Newzoo. Global esports audiences are expected to reach nearly 500 million in the same period, surpassing the growth of other forms of entertainment and traditional sports. The trend is being driven by the mobile gaming market, which is attracting more players into the world of competitive gaming. This, in turn, is expanding the ecosystem of the esports industry to include more traditional sports teams, new regions and, with heavy reliance on fan engagement, virtual and augmented reality technology.
Breaking Down the Esports Industry: Trends and Predictions
The esports industry continues to grow at a rapid pace, with revenue projections estimated to reach $1.1 billion in 2020. With such tremendous growth, it is important to keep an eye on the trends and make predictions for the future.
Understanding the Esports Landscape
Esports is a type of competitive gaming that involves multiple players competing against each other using video games. These competitions take place in front of an audience, either in person or online, and can be watched through live streaming platforms. The esports industry encompasses various aspects, including game publishers, event organizers, teams, players, investors, and advertisers.
The Growth of Esports
According to Newzoo, an esports data analytics company, the global esports audience is expected to reach 495 million in 2020, with revenue reaching $1.1 billion. These impressive statistics make esports the fastest-growing entertainment industry globally, surpassing traditional sports and other forms of entertainment.
Several factors are contributing to the growth of esports, including the accessibility of games and gaming technology, social media and live streaming platforms, and the competitive structure of esports leagues. Additionally, the rise of mobile gaming has significantly contributed to the growth of the esports industry, as it has made it easier for players to enter the world of competitive gaming.
The Esports Ecosystem
The esports industry has a complex ecosystem that involves various stakeholders, including game developers, tournament organizers, teams, players, fans, investors, and advertisers. These stakeholders work together to create a sustainable esports ecosystem that supports the growth of the industry.
One of the most critical aspects of the esports ecosystem is the involvement of game publishers. They are the ones responsible for developing the games and designing the competitive structures that enable esports tournaments to take place. The success of the game developer translates directly to the success of the esports industry.
The Future of Esports
The esports industry is expected to continue growing at a rapid pace in the coming years. Some of the trends that will shape the future of esports include:
The Rise of Mobile Esports
As mentioned earlier, mobile gaming has significantly contributed to the growth of the esports industry. The availability of cheap smartphones and reliable internet connectivity has made it possible for players to participate in esports tournaments from anywhere in the world. With the growing popularity of mobile gaming, it is expected that mobile esports will continue to grow in popularity in the coming years.
Inclusion of More Traditional Sports Teams
More traditional sports teams are getting involved in esports, recognizing the potential for growth in the industry. These teams are investing in esports teams, which has resulted in the creation of more professional teams, leagues, and tournaments. This trend is expected to continue, with more traditional sports teams diving into esports to capitalize on the growth potential.
Expansion into New Regions
Esports has traditionally been dominated by players and teams from North America, Europe, and Asia. However, the industry is expanding into new regions, including Latin America, the Middle East, and Africa. These regions have huge gaming communities, and as internet connectivity continues to improve, it is expected that more esports tournaments will be held in these regions.
Increased Fan Engagement
The esports industry is heavily reliant on fan engagement, and as such, there is a growing trend towards increasing fan participation in tournaments. This includes the use of virtual and augmented reality technology, which allows fans to experience tournaments as if they were physically present.
Conclusion
The esports industry is a rapidly growing sector that is attracting significant investor interest. With more than 495 million viewers worldwide, the industry represents a massive opportunity for game developers, tournament organizers, teams, and advertisers. As the industry continues to grow, it is important to keep an eye on trends and make predictions for the future, which will enable stakeholders to take advantage of the many opportunities presented by esports.