The analytical company Newzoo has published new forecasts about the esports competition market. Industry revenues will amount to $493 million by the end of 2016. This is 7% higher than the company predicted at the beginning of the year.
Newzoo made the previous forecast about the esports market at the beginning of the year. According to analysts, revenues were expected to reach $463 million.
The amendments had to be made because during the year the interest of publishers and the media in esports was higher than expected. Accordingly, the number of investments has increased.
If the forecast is justified, it will mean that the industry’s revenues have grown by 51.7% over the year. In 2015, the volume of the esports market amounted to $325 million, according to Newzoo.
By 2019, the market volume will exceed $1.1 billion.
Newzoo reports that the key component of the esports economy is the money that comes from brands. This includes advertising and media revenue, as well as sponsorship money. According to Newzoo, in 2016, the total revenue from brands in cyber sports will be $350 million. This is 71% of the total revenue. The remaining 29% will come from the sale of related products, tickets to competitions and payments to tournament organizers.
The leading region in the industry is North America. Of the projected $493 million, 36% of esports revenue will come from this area. China is in second place (15%). South Korea is next (8%). Newzoo does not specify the countries that account for the remaining percentages.
Source: Newzoo