Esports, or competitive video gaming, is growing exponentially in popularity and recognition as a legitimate sport. The global esports audience is projected to reach 495 million in 2020, with the majority of viewers coming from the Asia-Pacific region. The esports market is estimated to generate $1.1 billion in revenues this year, with sponsorships and advertising accounting for the majority of revenue. Esports sponsorships and advertising are projected to generate $722 million in revenue by 2022. Other revenue streams come from tournament and event ticket sales, merchandise sales, and game publisher fees. The esports industry is quickly becoming a major player in the world of sports entertainment.
The Continued Dominance of Esports: Growth and Revenue Statistics
Introduction
Esports, or competitive video gaming, has been steadily growing in popularity in recent years. With the rise of streaming platforms like Twitch and the recognition of esports as a legitimate sport by the International Olympic Committee, the industry is only continuing to expand. In this article, we will be taking a look at the current state of esports and its growth and revenue statistics.
Growth of Esports
The growth of esports has been nothing short of exponential. According to a report by Newzoo, a market intelligence firm, the global esports audience is projected to reach 495 million in 2020, with the majority of viewers coming from the Asia-Pacific region. In addition, the report estimates that the esports market will generate $1.1 billion in revenues this year, with the majority of that revenue coming from sponsorships and advertising.
Esports Revenue Statistics
As mentioned, the majority of esports revenue comes from sponsorships and advertising. In fact, a report by Goldman Sachs estimates that by 2022, esports sponsorships and advertising will generate $722 million in revenue. In addition, tournament and event ticket sales, merchandise sales, and game publisher fees also contribute to the revenue stream.
Sponsorships and Advertising
Sponsorships and advertising are the bread and butter of the esports industry. Companies are eager to tap into the massive esports audience, which is predominantly comprised of young, tech-savvy individuals. According to Newzoo, sponsorships and advertising will account for $636 million in esports revenue in 2020.
Tournament and Event Ticket Sales
Esports tournaments and events have been able to sell out massive venues in recent years. For example, the League of Legends World Championship finals sold out the Beijing National Stadium in 2017, which has a capacity of over 91,000 people. According to Newzoo, tournament and event ticket sales will account for $58 million in esports revenue in 2020.
Merchandise Sales
Just like with traditional sports, fans of esports are eager to show their support for their favorite teams and players by purchasing merchandise. This includes everything from jerseys and hats to mousepads and keyboards. According to Newzoo, merchandise sales will account for $121 million in esports revenue in 2020.
Game Publisher Fees
Finally, game publishers themselves are getting in on the esports action by collecting fees from tournament organizers and teams. According to Newzoo, game publisher fees will account for $183 million in esports revenue in 2020.
Conclusion
Esports is a rapidly growing industry that shows no signs of slowing down. With a massive and dedicated audience, as well as a diverse range of revenue streams, esports is quickly becoming a major player in the world of sports entertainment. As we move into the future, it will be exciting to see how the esports industry continues to develop and expand.