The eSports sector has experienced tremendous growth in recent years in terms of revenue and viewership. The increased popularity of eSports events has increased viewership, contributing to revenue growth. For example, reports by Grand View Research revealed that the eSports market worldwide was valued at 2,008 million USD in 2021. The report further projected that the sector would have a CAGR of 21.9% from 2022 to 2030.
Other reports from the industry also show that increasing live streaming of eSports games, rising audience reach, leagues, and formidable investments have contributed to the industry’s growth. Esports events are also available for sports wagering fans on top platforms like Betway gh, which has also helped make the sector popular globally. This article looks at the eSports industry and what the future holds.
Esports Sector Key Stakeholders
Multiple stakeholders make up the ecosystem, including:
Gamers
Players play a critical role in making the eSports sector thrive. Before becoming an eSports competitive gamer, you must develop your skills through extensive and competitive play. Pro gamers usually train for quick reflexes and multi-tasking abilities. You might have to invest several hours a day to hone these skills.
Gamers that rise to the professional level usually compete in global tournaments against the best teams. They also build a fanbase for the teams and organizations they represent as they develop themselves. Nowadays, gamers also use streaming services like Twitch and YouTube to build a global following.
Additionally, retired eSports gamers can become coaches, start their teams or work as publishers. Some of the most prolific players usually end up being the face of the game—for example, Faker in League of Legends.
Teams
Esports teams have also become a key component of the eSports. Teams have made their name by being prolific in specific games. For example, Astralis and NaVi are popular names in SC: GO. On the other hand, teams like Sentinels, Cloud 9, and Team Liquid are prolific in VALORANT.
Traditional sports teams and athletes have also picked up an interest in eSports. For instance, Shaquille O’Neal co-owns NRG Esports. Large organizations usually fund these teams, and most teams specialize in one specific game. These organizations usually have several teams, each specializing in a specific game.
Streamers
Streamers are gamers who stream themselves as they play video games. It is usually in the form of casual play. However, pro gamers stream their ranked games or analyze their gameplay to enlighten and entertain viewers.
Streaming can be very profitable, but gamers must decide whether to stream for profit. It’s vital to remember that not all streamers are professional gamers.
Leagues and Tournaments
Esports teams are in the form of free-agent teams or represent an organization in league competitions that feature regular sessions and championship games. An example of a popular league is the League of Championship Series for the League of Legends game. The tournaments have become popular on betting sites like Betway, where users wager on various eSports events.
Developers and Publishers
These are important people as they are the ones that develop games and own the rights surrounding them. This implies that the developers have the rights to where the games will be played and who can host video game tournaments.
Esports Growth Statistics
Fortune Business Insights show that the eSports industry will grow to a projected market size of 5.48 billion USD by 2029. This implies that it will exhibit a CAGR of 21% during that period.
Apart from the eSports revenue growth, studies also show that eSports viewership is growing. According to Newzoo, the CAGR for eSports viewers will be about 7.7% from 2019 to 2024. The reports suggest that occasional eSports viewers will grow to 291 million.
Esports Revenue Streams
The eSports sector enjoys multiple revenue streams that have helped make it very profitable. The notable revenue streams include:
- Sponsorship deals: many brands are interested in tapping into the massive eSports audience globally. Consequently, they are willing to invest massive amounts in sponsoring eSports teams and events. The sponsorships are in the form of event sponsorships, team sponsorships, and product sponsorships.
- Media rights: eSports events are usually broadcast online and on television. The rights to broadcast these events are valuable assets. Companies are willing to pay a high price for the broadcasting rights to these events.
- Advertising: since eSports events attract massive viewership globally, they are attractive to advertising companies. In-game advertising has become popular, with companies placing ads in games.
- Merchandise: with fans eager to show their support for their preferred teams and players, they spend money on jerseys, hats, and other eSports apparel. This is an excellent source of revenue for the eSports teams and leagues.
The Future of the Esports Industry
As you’ve already noticed, eSports is a sector experiencing rapid growth. It enjoys a massive global following and has emerged as a significant revenue-generating industry. Here are the projected future trends of the industry:
Increased Mainstream Acceptance
Esports is already enjoying mainstream acceptance, with top corporations and organizations involved. However, the trend is expected to continue as eSports will enjoy more mainstream acceptance. For example, industry experts claim that more sports organizations and media outlets will cover eSports events.
Better Infrastructure
As the industry continues to grow, stakeholders should expect improved infrastructure. The infrastructure includes better broadcasting technology, better eSports venues, and more detailed data analytics. All these developments will help to professionalize the eSports industry, attracting more investors and sponsors.
Expansion to New Markets
You should also expect the eSports industry to make inroads into new markets. Esports tournaments will help to reach out to pro gamers in new locations. The emergence of new games and game genres will also appeal to new audiences.
Increased Investment
As the industry grows and ventures into new markets, we expect increased investments from new investors and traditional sports organizations. These investments will help to propel the industry to the next level.
Final Thoughts
The future of the eSports industry looks bright! We should expect to see the industry receiving more mainstream acceptance and expanding to new markets. This growth is excellent news for eSports enthusiasts as it shows better days ahead.