The global Esports economy will hit $905.6 million in 2018

In the coming years, the global esports economy will grow to $905.6 million, up 38% year-over-year. Of which, the majority of this figure (77%) will be generated directly (sponsorship and advertising) and indirectly (media interests and content copyright) through investment from local brands. and foreigners are willing to spend 694 million dollars a year, a significant increase (48%) compared to the previous year. Breakable down into segments, $174 million into advertising, $359 million into sponsorship, and over $161 million into media rights and content rights. Media interest will see a dramatic jump from last year, up 72% since 2017. The cost of customers to buy tickets and products will total $96 million, while another $116 million will be paid. publisher’s investment in the Esports industry through collaborative contracts with white-label organizers (who do not directly create the product but stand for the product created by another party) . You can learn more about the predicted vision for the Esport economy at the end of this article.

This annual report is part of Newzoo’s Esports market reporting service that includes quarterly trends and updated forecasts and a rough audience bulletin and revenue forecast. The service is geared towards the majority of global gaming, media, and hardware companies, as well as esports teams and sponsors.

Newzoo Newzoo CEO Peter Waman: “As a consumer phenomenon, esports continues to grow its fan base across the globe. According to the business model, esports is entering a new and important phase towards maturity. Huge investments have been made, new alliance structures have been released, funding flows from the pilot phase have moved on to continuity, and international media rights exchanges have begun to boil. more active. At the same time, player wages have increased dramatically, and the esports ecosystem and hourly viewership are still heavily dependent on a certain number of globally active teams and games. Profitability and return on investment for many organizers at the heart of the esports economy remains a challenge.

The total number of global Esports viewers will reach 380 million this year

The global esports audience will reach 380 million this year, including 165 million Esport fans and 215 million occasional viewers. Based on 2018 audience and revenue projections, the average revenue per Esport fan is $5.5, up 20% from 2017. With the maturation of the esport industry and the number of events. Local, league and media interests all increased, with Newzoo predicting revenue per fan to grow to $6.6 by 2021.

Newzoo’s audience dropped slightly after the last report for two reasons. Firstly, through a thorough analysis of esport viewership between urban and suburban areas in developing regions such as India, SEA, and the Middle East and Africa region leads to a downward trend. light. Second, the numbers now only show the viewership of professional esports content, tournaments and events. Previously, contestants in amateur (online) tournaments, such as ESL Play, Toorament, and FACEIT, were also part of esport fan groups. However, a significant portion of these gamers do not watch professional esports content. Due to the growing importance of media and viewership in the esports industry, and thus a greater emphasis on pure viewership, this group is no longer part of our audience projections. .

The Future of Esports

One of Newzoo’s industry surveys last year showed that the majority of responses received from teams indicated that esports takes 5 to 10 years to become a mature commercial industry. The results also show that brands and agents expect the ecosystem to be fully professionalized in the next 3 to 5 years. This shows the current state of the market: high expectations from the outside and a cautious view from industry insiders. This year will be a pivotal year to determine the pace at which esports becomes the billion-dollar global business Newzoo envisions. A few key points that will affect the growth rate and whether eSports can reach new fans through new formats and brands, the growth of eSports on mobile, the success of the franchise structure, and profits of the teams.

On the current track, Newzoo predicts that the esports industry will reach $1.4 billion by 2020. If the above factors accelerate, a positive scenario suggests revenue will hit $2.4 billion.

North America leads in terms of revenue. Local initiatives on the rise in Western Europe

North America still holds the title of largest esport market in 2018 with $345 million in revenue. This suggests strong growth that could hit $656 million by 2021. Most of these revenues will come from grants, which will grow from $100 million in 2017 to $162 million in 2018. This increase is fueled by the number of North American teams receiving new sponsorships from outside the locality and the region hosting several world-class tournaments and competitions. 23 million fans in North America will generate $14.80 per capita, higher than in other regions.

Western Europe is the second region in terms of revenue with $169 million in 2018. Western Europe, more than any other region, is characterized by a local esport ecosystem that operates alongside regional competitions and tournaments. While international tournaments are very popular, local esports organizers have been extremely successful in recent years. Some notable examples are ESWC (France), Gfinity (United Kingdom), and LVP (Spain). With a culturally diverse audience, many regional sponsors, media companies, and investors are looking for esports initiatives that align with their strategies. Grants are still the biggest source of revenue with $62.9 million, while media interests total 26.6 million this year, up 49 percent year-over-year.

China is also a booming eSports market with estimated revenue of around $164 million in 2018 and a total audience of 125 million. China is notable for its strong popularity in mobile esports, including casual games. For example, “the Global Final of The Battle of Balls Professional League” attracted 13,000 spectators in Shanghai and 5 million viewers across China’s live-streaming platform.

International Esports Market Report

Newzoo’s annual eSports market report provides an accurate and realistic view of the esports economy and its future potential, globally and regionally. The report provides an in-depth analysis of the esports market, including revenue and customer projections (2016-2021), industry developments by each region, top events and brands, and strategic key and positioning. Along with the report, subscribers will receive quarterly updates, access to the world esport market table, and dedicated help from analysts. Newzoo also provides esport clients with a wide range of esport information services, including customer insight across 28 countries.

Source: Newzoo