The market overview says that the global esports industry reached a value of $1.28 billion in 2021. The future market trends expect the industry to reach $3.86 billion by the end of 2027, proliferating an average increase of 22.4% during this five-year period. There are direct and indirect influences of the current worldly situations and can be considered as the major market-changing contributor. In esports, the primary factors of the game are majorly facilitated and monitored by electronic systems.
It can be considered as a competitive video gaming being proctored by various tournaments and leagues. Esports have been witnessed as improving attention, hand-eye coordination, visibility, visual acuity, and visual processing. Esports has not only modernized the field of sports and gaming but has also aided in curbing problems like boosting self-confidence, developing techniques, skill-boosting, player socialization, etc., due to which it has gained huge popularity across the world.
Esports Market Trends
There has been a rise in the growing market trends associated with esports around the world. There has been a potential increase in the span of time by the viewers streaming live, thanks to the technology for bringing in the best through live streaming services. Various platforms have been facilitating the growth of games online with various additional features. Consider the popular esports betting site in Canada. They offer a multi-faceted functional approach to their users, which in turn is increasing their name and market value amidst the entire sports industry.
Such is the power of technology and market trends combined together. Think about online advertisement brands collaborating with esports gaming companies and dealing and generating revenue from these collaborations, augmenting the economy of the global marketing scenario. Various organizations across the world are collaborating with esports stakeholders to protect the sanctity of the competition and investigate all forms of manipulation and cheating. Market players have also been working towards offering games on various platforms such as PCs, mobile phones, and consoles. The growing popularity of electronic sports among the younger generation along with regular investments in the esports market worldwide is contributing to the driving force.
The rising factors associated with the esports industry are an increase in the reach of audience and engagement activities, improvement of the infrastructure for tournaments, and professionalization of the industry, all these factors provide lucrative opportunities to players, game developers, event organizers, etc., contributing to the overall growth of the market forces.
Market Segmentation and Report Analysis
Esports require a detailed analysis of the entire ecosystem associated with various competitions or leagues. Reports also contain the overall value chain analysis pertaining to the esports industry. The overall esports industry or the market is also forecast by market segmentation based on certainties like revenue streams around the world. Some of the key trends accepted for forecasting at the regional, country, and global levels in the year 2022 to 2027 are drafted and categorized based on a few revenue models.
Revenue Model Breakup:
- Advertising and sponsorships
- Media rights
- Merchandise and tickets
- First-person shooters
- Multiplayer Online Battle Arena
- Player Vs Player
- Real-Time Strategy
- Consoles-based esports
- PC-based esports
- Mobile and tablets
Sources of Esports Revenue
Advertising has been one of the largest sources of revenue generation for esports. These companies include revenue generated from the viewers targeted by the advertisement, inclusive of ads visible during streaming live or on online platforms, and through video-engaging content of esports leagues or matches.
The rise in viewers and audience has been vital for years due to the growing demands of esports in the market. During the forecast period, advertising on various platforms has been anticipated to generate more revenue. With an increase in the number of streamers, the online engagement, and the advertising content will also increase, in turn generating revenue for the market.
The Future of Esports
Video games have continued to integrate into the dominant culture of the sports industry. Global investors, media outlets, and popular brands, all have started offering special attention to the esports industry due to its high demand in the market. Statistics show a total count of 29.6 million esports viewers per month in the year 2022, which is 11.5 percent more than in 2021.
The culture of the entire esports industry has assisted in powering esports revenue and investment. The social component of gaming and live streaming related to esports has made it hit the world with new fronts and levels. Online platforms are already giving connection statures to the teams and players, for exploring more features online. The market forces have witnessed a large uptick in investment ranging from huge capitalists and big ventures, also from private firms. The approximated number of investors in esports readily doubled in 2018, from 34 in 2017 it went up to 68 in the following year, reflected in the investments made in dollars.
The investments are expected to rise every year, fetching enhanced revenue in the proceeding year. Instances from the year 2018 have been overwhelmingly productive. An amount of $490 million in a year went up to $4.5 billion in the next year, such a massive rise. These investments are divided across various teams and players in the esports ecosystem, from organizations to esports operators, to tournament managers, and digital broadcasters for a smooth operation. The concluding result that esports have achieved today is the maturity from arcade gaming to complex virtual ecosystem functioning.
Esports have tempted the entire world to tangle along with it and grow eventually. Such is the power of technology and sports when combined together. Sports have always been the most dominating industry of all, but esports have outshined every other industry today and have skyrocketed the market trends.