The profitability of the esports industry is rapidly increasing. In 2017, the turnover of the international virtual competition market was estimated at $655 million. Compared to the previous year, the increase was 33%, according to a report by Newzoo.
Newzoo experts believe that by the end of this year, the revenues of the esports sector will reach $906 million. And in 2021, the turnover of the global esports business will exceed $1.6 billion.
Current and projected turnover of the global esports market, Newzoo
The key driver of the growth of the esports industry has been investments in the field of brands.
This includes the rights to broadcast competitions, advertising and sponsorship.
Sponsors’ investments form a large part of the turnover of the esports market.
For example, in 2017, out of $655 million of total revenues, $468 million (60%) came from brand investments.
The rest of the esports revenue is generated from ticket sales, merchandising and royalties to game publishers.
38% of the total esports market is occupied by the North American region. The major national centers of world esports are China (18%) and South Korea (6%). The remaining 38% are distributed worldwide.
The audience of esports competitions grew by 15% last year to 165 million compared to 2016. Newzoo experts believe that by 2021, 306 million people will become spectators of gaming tournaments.
Also on the topic: