Oct 29, 2019
70% of eSports Market Revenue Concentrated in 16-35 Years Demographic
by Team Fact.MR
Global eSports market revenues are set to rise at over 20% in 2021, with growing sponsorship and advertising spend in US and Europe driving growth. New eSports market research report by Fact.MR opines reduction in outdoor sporting activities a key accelerator.
Key Findings of the Study
- Smartphones will further cement their position as the eSports device of choice, with a market size 2.5x that of gaming consoles
- Tablets and laptop that support high-graphic gaming and quicker processor speed will witness growing sales
- Market revenues through professional players will reach US$ 947 million in 2021, nearly double of occasional/amateur players
- 70% of eSports market revenue concentrated in 16-35 years demographic
- Revenue generated through eSports sponsorship to reach US$ 558 million in 2021
- Advertising and media right eSports revenues will collectively account for US$ 500 million worth of revenues
As the commercial platform of eSports industry includes the amalgamation of multiple avenues across industries starting from an eSports infrastructure to the broadcast media, the report covers all the vital avenues of the eSports market. Elaborating further, the eSports market is categorized in segments based on device, end-user, age group, revenue stream and region that hold significant influence on the overall performance of the eSports market.
According to the study, an increasing adoption rate of smartphones, development of high definition displays and incrementing internet speed and bandwidth has led to a neck and neck competition between two of the eSports device type segments – tablets & laptops and smartphones. Smartphones are expected to outnumber tablets & laptops segment by 2028 end, considering feasibility, popularity and affordability of the devices.
Amidst the prevailing incertitude regarding whether eSports is a sport or a game or a mind sport, the study has categorized two major end users of the eSports market including professional players and occasional viewers. While the number of occasional viewers is on the rise, professional players hold a major market share as more and more youngsters opt to become a professional gamer.
The eSports market study traces the lucrativeness of the market in terms of revenue generation from different streams including sponsorships, advertising, media rights, game publisher fees, and merchandise & tickets segments.
The research study observes that as the leading brands across industries are making huge investments to sponsor eSports tournaments, the market share of eSports sponsorships segment is expected to expand at a higher growth rate contributing over 40% of the total market share. In addition, a growing number of partnerships among technology providers and investors has also been covered during the phase of research study.
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Europe and US Among Top eSports Markets
While Scandinavians and Eastern European countries were reported to be the most popular YouTube genre in eSports, North America is observed to be the highest producer as well as consumer of eSports across world business regions. According to the Fact.MR analyst, a considerable population of eSports enthusiasts and a hub of technology and business innovation mark the progress of the North America eSports market, reporting the most lucrative double digit CAGR surpassing 24% during the forecast period.
eSports industry has rapidly commercialized in the past half a decade owing to the technological advancements and increased accessibility and connectivity of eSports platforms. The behavior of eSports consumers as well as stakeholders is evolving significantly as the eSports industry becomes more structured and commercialized. Further, the recent introduction of eSports as a demonstration sport in the 2018 Asian Games is set to propel the commercialization of eSports during the forecast period.
Although eSports challenges the traditional sports in terms of viewership, entertainment and monetization, the eSports market lacks legal governance. An absence of sophisticated approach is gradually quenching the true potential of eSports market against the backdrop of various legal and business issues. The eSports market is expected to overcome these sustainability challenges to maintain a gainful outlook in the years to come.