The esports industry is thriving. It’s experienced significant growth in the last two years. It’s also still in the nascent stage, which means it has tremendous growth potential going forward. In this esports series, we intend to closely examine the esports industry in terms of expected growth, major players, games, and much more. Right now, let’s take a look at the expected growth in esports viewership and the total available market in this space. eSports industry will reach $1 billion in 2019 According to gaming research company Newzoo, spending in the global competitive gaming industry will exceed $1 billion this year. This figure reflects a rise of 26.7% YoY (year-over-year). The report states that advertising, sponsorship, and media rights will account for close to 82% of total industry spending, amounting to $897.2 million, in 2019.
Other revenue streams include merchandise and ticket sales and game publisher fees. Total esports viewership is expected to grow 15% YoY to 453.8 million, and the total audience is expected to hit 645 million by 2022. Newzoo expects the average revenue per fan to grow to $6.02 by 2022. This expectation means esports spending could reach close to $4 billion by the end of the forecast period. However, Goldman Sachs has a more conservative estimate for competitive gaming viewership. The investment bank expects it to reach 300 million by 2022. According to Goldman’s report, “In 2018, we estimate the global monthly audience for esports will reach 167mn people, based on data from NewZoo, larger than that of Major League Baseball and the National Hockey League.” It adds, “We estimate the total online population is over 3.65bn people globally, to go along with 2.2bn gamers, but esports viewers represent just 5% of the online population TAM, which suggests that there should be plenty more runway for […]
eSport Viral is the creation of Brian from Debt Discipline. Our goal here at eSports Viral is to curate the best news, reviews, and recommendations from the world of gaming. A one-stop shop if you will for the online, multiplayer, and competitive video game community to find the latest and best information.