Esports Industry Expected to Surpass $2.5 Billion in 2022

Esports Industry Expected to Surpass $2.5 Billion in 2022

Any teenager or youth in this current generation has played a video game either using a mobile device or other electronic gadgets. For sure, the current generation doesn’t have an idea about the early Street Fighter video game introduced in the early 90s. Talk to any game fanatics born in the 80s who loved to play video games. They will indeed mention how Street Fighter stirred them during those golden eras. If you are not familiar with Esports gaming, the fact is this industry has always been around since video games emerged. However, Esports has not been popular in the earlier decades like other video games, but it is gaining ground tremendously. To mention, a few of the most played Esports games include: League of Legends, Dota 2, Overwatch, Counter-Strike: Global Offensive, PUBG, and Fortnite. For now, let’s only focus more on Esports growth and why it is the newest trending video game with large viewership and revenue. You will also understand why the Esports industry is getting popular and why it is here to stay.

Esports Awareness is Increasing

Esports is a competitive video game predicted as the next game-changer in the current and future generations. Probably even if it is your first time hearing about Esports, let’s get the facts right. Global awareness of Esports is increasing at an alarming rate in terms of revenue and viewership as people learn about it. In 2019, the audience awareness grew to 1.8 billion people, with more growth expected in the coming years. If you are an avid video game player, you have no excuse for not being among Esports participants.

The Impact of Esports Revenue Growth on Brands and Investment

The promising growth in the Esports industry for the past decades has been successful. This progress has made influential brands and people invest in this competitive industry. Surprisingly, even celebrities, including actors and musicians, are pumping more cash to support Esports, a trend common among sports stars. For your confirmation, The Motley Fool reports published in 2018 show that Esports was almost a billion-dollar business. The private financial and advising company further stated that it would be foolish if investors neglected the Esports industry. In addition, as much as you rush to pay for the latest movies released in theatres, the Esports industry also has massive spectators paying to stream live tournaments happening in gigantic arenas. Well, if you are a gamer who loves sitting on a couch entertaining yourself with more game action, you need to capitalize in the Esports world too. It’s worthwhile if you also join the world of Esports, where more money and investments add up to its popularity and growth.

The Growth of Esports Industry

In 2019, a Reuters report estimated that Global Esports revenues would hit about $1 billion. At least these figures are slightly consistent with Newzoo’s reports showing revenue of $957.5 million in the same year. Newzoo is the world’s most reliable source for Esports games and research that evaluates the latest Esports market growth and trends for the upcoming few years. Their analysis also identifies the importance of Esports live streams and gaming worlds with some crucial discoveries. According to one research, Newzoo estimated that in 2020, China’s Esports revenue operated around $385 million. Other news also confirms the growth of the Esports audience reaching over 454 million viewers. A valid reason behind the development of Esports competition is the availability of YouTube and Twitch as the leading online streaming platforms.

Besides, one notable factor is understanding that Esports’ future will mainly turn into mobile platforms. In 2021, mobile gaming will cover about 45% of the global gaming market. The most common sources creating massive Esports revenues include advertising, event sponsorship, in-game purchases, ticket and merchandise sales. One significant gap in these predictions is the underestimation in the development of the mobile competitive play. This includes app downloads, viewership, and player participation. Projections also estimate that mobile users will drive significant growth in the upcoming years. With Skillz, Ryu Games among the pack pushing the mobile real-money in Esports gaming, we expect the revenue to surpass $2.5 billion by 2022.

5G Enables Expansion in Mobile-First Countries

There is a wide possibility of developing markets with dense populations relying more on smartphones to access the internet. With the emergence of the 5G networks, there is excellent potential for better-quality mobile connections and improved streaming. The emergence of 5G indicates it will speed up the expansion of mobile tournaments in real-time. Similarly, other mobile-first nations such as China, Southeast Asia, and several regions in Africa will experience significant growth with 5G impacts. So, we believe once Newzoo conducts its market analysis soon again, it will discover an Esports market on its way to surpass $2.5 billion in revenues by 2022.

The Growth of Platforms Providing Live Esports Coverage

By now, you already know the audience watching Esports videos and events is very big. The reason is online platforms are currently making it easy for people to access Esports content. In addition, Esports streamers require such platforms to stream live events, including their gameplay. At least fans can easily engage with their favorite streamers as they participate in their preferred events, increasing viewership on these platforms. Additional Q1 2021 reports show that twitch viewers dominate live streams, followed by YouTube and Facebook. So, there are a lot of live stream activities taking place on these platforms. Overall, the growth of the Esports industry in all aspects leads to one crucial conclusion about this industry. The gaming fans are highly active and occupied with relevant video gaming content set to become the future for the upcoming generation.Overwatch

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