Esports, or electronic sports, has become one of the fastest-growing industries globally due to the rise of the gaming industry and advancements in available technology. The market is expected to generate a revenue of $1.5 billion by 2023, with a compound annual growth rate (CAGR) of 14.0% from 2018. High player participation and large prize pools have led to the establishment of professional esports teams, resembling traditional sports teams. Sponsorship deals from large businesses, such as Coca-Cola, Intel, and Red Bull, have invested heavily in esports, leading to the creation of esports startups. The future of esports will focus on expanding into new markets and enhancing the viewing and gaming experience.
From Play to Profit: The State of Professional Esports Today
Esports, short for electronic sports, has been around for decades, but it is only in recent years that it has gone mainstream. Rapid technological advancements and the growth of the gaming industry have helped it emerge as one of the fastest-growing industries in the world. The global esports market revenue is expected to reach $1.5 billion by 2023, with a compound annual growth rate (CAGR) of 14.0% from 2018 to 2023. Let’s take a closer look at the state of professional esports today.
The Growth of Esports
Esports has come a long way since the first competitive video game tournament, the Space Invaders Championship, was held in 1980. Today, esports tournaments are held in stadiums and arenas around the world, with millions of fans tuning in to watch their favorite teams and players compete.
The rise of esports can be attributed to a few key factors:
- The growth of the gaming industry
- The emergence of streaming platforms like Twitch
- The increasing popularity of multiplayer games like League of Legends and Overwatch
- The growing acceptance of video games as a legitimate form of entertainment and competition
The Professional Esports Scene
The professional esports scene is organized into different leagues and tournaments, similar to traditional sports. The largest esports tournaments attract thousands of participants and millions of viewers, with prize pools reaching into the millions of dollars.
Some of the biggest esports leagues include:
- League of Legends Championship Series (LCS)
- Overwatch League (OWL)
- Counter-Strike: Global Offensive Major Championships (CS:GO)
- Dota 2 The International
- Fortnite World Cup
Professional esports teams are akin to traditional sports teams, with players signing contracts and earning salaries. Some of the most successful esports teams include Cloud9, Team Liquid, and Fnatic.
The Business of Esports
As the esports industry continues to grow, so does the business of esports. Companies have recognized the potential of esports as a marketing tool and have invested heavily in sponsoring esports tournaments and teams. Some of the biggest names in esports sponsorship include Coca-Cola, Intel, and Red Bull.
The gaming industry has also benefited from the growth of esports. Gaming companies like Riot Games and Blizzard Entertainment have created their own esports leagues and tournaments to promote their games and engage with their fan communities.
The growth of esports has also led to the emergence of esports startups, companies that specialize in providing services and technology for the esports industry. These startups have raised millions of dollars in funding from venture capitalists and are helping to shape the future of esports.
The Future of Esports
Esports is still a relatively young industry, and there is plenty of room for growth and innovation. Some of the key areas of focus for the future of esports include:
- Expanding into new markets around the world
- Improving the viewing experience for fans
- Increasing diversity and inclusion in the industry
- Developing new technologies to enhance gameplay and competition
Overall, the state of professional esports today is strong, with industry revenue and investment continuing to grow. With the potential to reach a global audience of millions, esports is poised to become a major player in the world of sports and entertainment.