The staggering figures of the global esports market
Esports is a modern phenomenon. For the layman, esports is a form of sports competition using video games either between professional players, individually, or as teams.
What’s the data say?
The statistics are plain for all to see. It’s estimated that globally, the total esports audience has grown to 495 million people this year, while global esports revenues have grown to $1.1 billion, a year-on-year growth of +15.7%, up from $950.6 million in 2019.
The Newzoo Global Esports Market Report 2020 states that in this calendar year, $822.4 million in esports revenues, or 75% of the total market, will come from media rights and sponsorship. On its current trajectory, experts predict the esports market will generate $1.8 billion in 2022. In fact, there’s so much money being ploughed into the industry as a whole that professional players will only earn more and more prize money as time passes.
Players’ wages vary, but the world’s top pros can potentially earn hundreds of thousands of pounds every year taking into consideration their wage, sponsorship deals, and prize winnings. For example, according to esportsearnings.com, Dota 2 has paid out $225,722,637.06 in prize money and ranks top of the list for monetary rewards.
It’s lightyears ahead of 2nd and 3rd placed Counter-Strike and Fortnite which have paid out $99,451,287.18 and $90,403,597.34 respectively. Talented pros who have the potential to earn big bucks usually start off in amateur or grassroots tournaments before catching the attention of bigger teams who snap them up on lucrative contracts. So who else is making the money? Clearly, the platforms hosting the esports tournaments are.
Sponsorships, advertising, and merchandising
Esports is the talk of boardrooms around the globe. Executives see an opportunity to connect with a young, tech-savvy demographic and seriously believe it’s worth a big investment. However, while the sponsorships are just the beginning of a lucrative relationship thus making esports a financial colossus, it’s the continued advertising presence that hammers home the value.
Major non-endemic brands in every sector are entering esports in their droves. Whether it’s a fast-food chain or a fashion store, everyone wants a piece of the pie. Sports label Nike recently signed a lucrative four-year deal with the League of Legends Pro League, indicating that giant brands are keen to get involved. The list goes on.
Last year, Nissan announced a jersey sponsorship with professional esports and entertainment organization FaZe Clan. It was Nissan’s first sponsorship within the esports industry and represents another major company that sees a massive financial opportunity in this sector.
It’s expected that China will continue to be the largest esports market on the planet, seeing revenues of $385 million in 2020. It’s closely followed by North America with $252.5 million and Western Europe with $200 million. Having conquered Asia, North America, and Europe, the hard work is done — and the only way is up.