Worldwide Esports audience will upsurge to 474 million in 2021, with revenues from competitive gaming set to be of US$1.084 billion by the end of this year (+14.5%, up from US$947.1 million in 2020), according to market researcher Newzoo. The rise in Esports’ audience represents year-on-year (YoY) growth of 8.7%. Of that 474 million, Esports enthusiasts (those who watch competitive gaming more than once a month) will account for under half of the overall figure, up 8.7 per cent YoY to 234 million. Newzoo’s 2021 ‘Global Esports and Live Streaming Market Report’ also expects that the total competitive gaming audience will continue to advance, with a compound annual growth rate (CAGR) of 7.7 per cent to 577.2 million in 2024. The study attributes the audience increase to ongoing infrastructure developments in growth markets that encourage participation, as well as the rise of mobile gaming. Emerging markets and regions are expected to stay on course for double-digit growth. This will also be driven by mobile gaming’s popularity in Latin America, the Middle East and Africa, Central Southern Asia, and Southeast Asia.
In terms of revenues, in 2021, US$833.6 million (over 75% of the total market) will come from media rights and sponsorship. The global games live-streaming audience will hit 728.8 million in 2021, growing 10% from 2020, and it is expected to reach 920.3 million by 2024. Besides, Newzoo text highlights: “The pandemic has undoubtedly underlined the resilience of regional ecosystems for the wider market, which may shift strategies and ensure a more secure Esports market for the future. Team organizations are beginning to diversify more, which may also foster a more stable market for the years ahead.”
INCREASE IN SECTOR’S WORTH AND VIEWERSHIP, ACCORDING JUNIPER
At the same time, this week, a new study from Juniper Research was released. With the name ‘Esports & Games Streaming: Emerging Opportunities & Market Forecasts 2021-2025’, the document has found that the global Esports and games streaming industry will be worth US$3.5 billion by 2025, rising from US$2.1 billion in 2021. This represents a growth of 70% over the next four years. The research predicts that the market value will be driven by subscription spend to streaming platforms and advertising spend over streams. However, it urges stakeholders to invest in other revenue-generating areas, including broadcasting rights and live event ticket sales, and establish high-value sponsorship deals to maximize the market value of Esports in the future.
In other indicators, Juniper also anticipates that there will be over 1 billion Esports and games viewers by 2025 (1 in 9 of the global population), growing from 800 million viewers by the end of 2021. Whilst it forecasts that the Asia-Pacific region will represent over 50% of these viewers by 2025, it identifies Latin America as a key region set for growth over the next four years. The analysis says that, by 2025, there will be over 130 million Esports and games streaming viewers in LatAm. Rising viewership will create greater levels of competition between content streaming platforms, including Twitch and YouTube. In turn, these streaming platform providers will have to promote their content to new audiences. Aligning Esports events with other industries, such as general entertainment, will provide these streaming platforms with opportunities to attract new users.