eSports Tipped To Top $1 Billion Revenue Worldwide in 2019
The global esports market is tipped to surpass the billion-dollar revenue mark in 2019 for the first time, a YoY boost of 26.4%, according to a report from analyst group NewZoo.
APAC accounts for 57% of worldwide esports “enthusiasts”, and NewZoo forecasts an increase of global viewership by 15% in 2019, to bring total audience numbers to 453 million worldwide.
NewZoo attributes the growth to media rights deals, expected to increase by 41.8% to $US251.3 million, and sponsorships and advertising — expected to provide a revenue stream of $US456.7 million.
The group predicts that North America is expected to remain the largest source of esports revenue, generating $US409.1 million.
Despite the countries strict restrictions on gaming, China is expected to generate $US210.3 million, and major cities like Chongqing, Xi’an, and Hangzhou are vying to become the country’s new esports hub.
Asia and the Pacific Islands (APAC) make up 57% of all esports fans, approximately 454 million people tuning in at least once a month — many tuning into the recent Predator Tournament that had Australia’s first representatives to the competition placing third.
Throughout 2018, gaming was consistently the saving grace for many companies, including the most recent figures from Best Buy.
Esports is just a smaller fraction of the overall gaming industry that involves tournaments featuring competition-based games like Players Unkown Battleground (PUBG) and Overwatch.
In comparison, SuperData reported that video games generated $US87 billion in revenue worldwide during 2018.
As gaming has an international reach, esports organisations can build and foster communities online over social media and gaming platforms — capitalising on the human love of competition.
With the success of gamers on streaming platforms like Twitch and YouTube, becoming veritable superstars, esports is only going to increase in exposure and revenue and as streaming technologies become more efficient the likelihood of generating revenue from fans more sustainable.
“Esports’ impressive audience and viewership growth is a direct result of an engaging viewership experience untethered to traditional media,” says Newzoo CEO Peter Warman.
“Plenty of leagues and tournaments now have huge audiences, so companies are positioning themselves to directly monetize these Esports Enthusiasts. While this began happening last year, the market is constantly expanding on its early learnings. The result: 2019 will be the first billion-dollar year for esports, a market that will continue to attract brands across all industries.”
According to NewZoo, the esports market will reach $US1.8 billion by 2022 on its current trajectory and if any factors accelerate, potentially even $US3.2 billion.