Research and Markets specialists have rolled out a forecast for the development of esports until 2025. According to their data, this market will grow by 20% per year on average.
The Research and Markets report lists factors and trends that will affect the growth of the esports industry in 2020-2025. To begin with, a few facts:
- The market is still in the initial growth stage. The appearance of new players in the ecosystem will allow him to quickly increase profits. On average, the esports market will grow by 20% per year (according to the CAGR indicator).
- Millennials remain the target audience of the market. Now these are people from 20 to 40 years old. Both viewers and esports players fall into this age category.
- Significant industry players now include Modern Times Group, Activision Blizzard, Riot Games (controlled by Tencent) and Electronic Arts.
Market growth may slow down:
- lack of developed infrastructure;
- insufficient awareness of esports in other areas of the industry.
Main trends in 2020-2025
1) Advertising will become the largest source of income from esports. We are talking about earning money from advertising shown in streaming services and directly at esports tournaments. It is expected that with the growth of viewers and streamers on Twitch, YouTube and other platforms, the volume of advertising content will increase.
The work of information and analytical companies, such as Nielsen, can also affect revenue growth. Specifically, she is working in this direction with Activision Blizzard and Riot Games. Now Nielsen evaluates the effectiveness of investments in the esports League of Legends, as well as the number of Overwatch League viewers. Thanks to this, companies can conclude more profitable investment and advertising contracts.
2) China will take a dominant role in the market. In this country, esports is especially popular among young people. But the local growth of investments in esports is much more important. The Chinese authorities actively support the market, and local corporations spend millions on the construction of their own esports facilities.
Eg:
- Hangzhou city authorities are building 14 such facilities and plan to invest $2.22 billion in esports;
- NetEase in Shanghai is also preparing its own esports park. $725 million will be invested in the project;
- giant Tencent signed a contract with Oriental Sports Center last year, making it an arena for its tournaments. The company wants to scale the most popular disciplines, such as League of Legends and Honor of Kings.
Recall: already this year, according to Newzoo, the revenue of the global esports segment may exceed $ 1 billion. In comparison with 2019, the amount will grow by 15.7%, which is close to the forecast of Research and Markets.
It was also noted that China will generate the largest share of income from esports — 35%.
Also on the topic:
- In 2020, the esports market will earn $1.1 billion even without broadcastersFortnite World Cup brought the finalists $30 million in prize money.
- What does this mean for the esports market?Is there any news?
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