The esports industry is expected to generate over $1 billion in revenue in 2021, according to a report by Newzoo. The projected revenue of $1.084 billion is a significant increase compared with $947.1 million in 2020, driven by several factors such as increasing popularity, investment opportunities and larger sponsorship deals. The majority of esports revenue comes from sponsorships and advertising, projected to generate $641.8 million in 2021. Asia-Pacific remains the largest market accounting for around half of the industry’s revenue while the mobile game market is quickly gaining ground among esports fans.
Esports Industry Set to Surpass $1 Billion in 2021
Introduction
The esports industry is booming and set to reach a major milestone in 2021. According to a report by Newzoo, the global esports market is expected to surpass $1 billion in revenue this year.
Global Revenue Projections
Newzoo’s report states that the esports industry’s global revenue is set to reach $1.084 billion in 2021, which is a significant increase compared to last year’s revenue of $947.1 million. This growth can be attributed to several factors, including the increasing popularity of esports, new investment opportunities, and larger sponsorship deals.
Revenue Breakdown
The majority of esports revenue comes from sponsorships and advertising, which is expected to generate $641.8 million in 2021. Another significant source of revenue is game publisher fees and advertising, which is projected to reach $254.4 million this year. Meanwhile, media rights revenues are set to generate $98.4 million, while merchandise and tickets will bring in $89.8 million.
Regional Analysis
The esports industry’s revenue growth is not limited to one specific region, as its popularity and profitability continue to spread globally. The Asia-Pacific region remains the largest market, accounting for close to 50% of the industry’s revenue. North America is the second-largest market, followed by Europe, the Middle East, and Africa (EMEA) and Latin America.
Game Analysis
Esports encompasses a wide variety of video games, making it difficult to categorize. However, Newzoo’s report highlights that the mobile game market is gaining ground quickly among esports fans. This is largely due to the increasing popularity of mobile devices and mobile gaming, which makes esports accessible to a wider audience.
Conclusion
The esports industry has come a long way since its inception and shows no signs of slowing down. With the global revenue expected to surpass $1 billion in 2021, the industry presents several opportunities for investors, game publishers, and sponsors. As esports continue to grow and evolve, it will be exciting to see what the industry has in store for the future.