The global esports industry is predicted to surpass $1 billion in revenue by 2024, driven by factors including increased awareness and acceptance, rising interest from investors, and increased viewership and participation. The industry has gained greater mainstream acceptance and recognition, with major corporations sponsoring esports events. This growth is expected to lead to greater standardization, the creation of governing bodies and regulations, and more revenue opportunities for players, teams, organizers, sponsors, and technology providers. The future for the esports industry looks bright, with significant implications for the industry as a whole.
Esports Industry Predicted to Surpass $1 Billion in Revenue by 2024
Introduction
The esports industry is set to exceed the $1 billion mark in revenue by 2024, according to a report by Newzoo. The report highlights the impressive growth rate of the industry, predicting a compound annual growth rate of 14% between 2019 and 2024. This article dives into the factors contributing to this growth and what this means for the industry as a whole.
Factors driving the growth of the esports industry
There are several factors contributing to the growth of the esports industry, including:
Increased awareness and acceptance
Esports is no longer considered a niche sub-culture, but instead has become a mainstream industry. With the rise of streaming platforms like Twitch and YouTube, esports tournaments are now accessible to a larger audience. Major corporations are also recognizing the value of esports, with notable brands like Coca-Cola, Red Bull, and Mercedes-Benz sponsoring esports events.
Rising interest from investors
The esports industry has been a hot topic among investors in recent years, with major investments being made into esports teams, leagues, and tournaments. This influx of capital has allowed the industry to grow and expand, with new tournaments and leagues being created regularly.
Increased participation and viewership
Esports has seen a significant increase in participation and viewership in recent years. Global events like The International, League of Legends World Championship, and Fortnite World Cup have garnered millions of viewers, showcasing the massive potential of esports.
Implications of the growth in the esports industry
The predicted growth of the esports industry has significant implications for the industry as a whole. Some of these implications include:
Increased professionalism
As the industry continues to grow, there will be a greater emphasis on professionalism and standardization. This will likely lead to the creation of governing bodies and regulations, similar to traditional sports.
Increased revenue opportunities
As the esports industry continues to grow and mature, there will be increased revenue opportunities for those involved. This includes not only players and teams but also organizers, sponsors, and technology providers.
Greater mainstream acceptance
Esports is already gaining greater mainstream acceptance and recognition, but the predicted growth of the industry will accelerate this trend. More non-endemic companies will become involved in esports, leading to more exposure and legitimacy for the industry.
Conclusion
The esports industry is poised for significant growth in the coming years, driven by increased awareness and acceptance, rising interest from investors, and increased participation and viewership. This growth will have significant implications for the industry, including increased professionalism, revenue opportunities, and mainstream acceptance. Overall, the future looks bright for the esports industry.