LONDON: The global eSports market is expected to post a CAGR of close to 28% during the period 2018-2022, according to the latest market research report by Technavio.
However, the market is expected to decelerate on a year-over-year basis, during the forecast period.
A key factor driving the growth of the market is the increasing popularity of eSports. eSports is gaining importance in the gaming industry. It is expected to be included as an official medal sport at the Asian Games 2022, to be held in China.
The International League of Legends World Championship, Major League Gaming (MLG), and FIFA Interactive World Cup are some of the eSports tournaments conducted worldwide. Moreover, eSports tournaments attract professional gamers along with sponsors, viewers, and people involved in eSports betting.
Increase in eSports betting
With the growing popularity of eSports in the last two years, there is widespread betting all over the world. The converse is also true, with the increase in eSports betting, the attraction toward eSports is growing as gamers stay motivated due to the high prize money. The people involved in betting are spectators, which increases ticket sales. In countries such as the UK, the US, Australia, Mexico, and Brazil, where betting is legal, eSports are very popular. Moreover, increase in eSports betting leads to an increase in viewership, resulting in an increase in the ticketing revenue for the event organizers. The legalization of betting activities is expected to catalyze revenue generation among e-sports vendors through an increase in viewership.
In 2017, eSports generated a revenue of $503.26 million.
“The growing popularity of eSports has not only increased betting but is also encouraging sponsorships by way of eSports advertising. Sponsors are using this platform to promote their products and services, confident that they will be able to reach out to a large audience. The large viewership numbers are encouraging several sponsors such as adidas, Coca-Cola, and Vodafone to enter the market to bring about more visibility for their brands. Therefore, the booming eSports market will have a positive impact on the popularity of sponsors related to the game, and their investments will remain an important source of revenue for the market during the forecast period,” says a senior analyst at Technavio for research on gaming.
Global e-sports market: Segmentation analysis
The Americas led the market in 2017 with a market share of over 41%, followed by EMEA and APAC respectively. The major reason behind the highest share of the Americas in the global market is the large-scale participation in eSports and the higher spending power of the population.
