Slow Growth In The Esports Market Due To Coronavirus Will Be Driven By Increasing Demand For Video Games
The global esports market size is expected to grow from $1.09 billion in 2019 to $1.11 billion in 2020 at a growth rate of 2.16%. The slow growth in 2020 is mainly due to the economic slowdown across countries, owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach $2.11 billion in 2023 at a compound annual growth rate (CAGR) of 23.82%.
The esports market consists of sales of esports and related services. Esports or electronic sports are team-based sports played online and are supported by electronic systems in which all the functions are performed through a human-computer interface. Esports are played by professional gamers that are sponsored by business organizations, or from sporting organizations. The global esports market is segmented by game into multiplayer online battle arena (MOBA), real time strategy, first person shooter, fighting and sports. It is also segmented by platform into PC, console, mobile, and others.
The rising demand for video games and increasing awareness of esports contribute to the growth of the global esports market. As technology is expanding, so is video content, products, and virtual reality. With this, video game competitions are also increasing. Video gaming has become a transformative form of pop culture and is redefining the ways that young people consume entertainment. In 2019, according to PwC’s latest Global Entertainment & Media Outlook, the videogames market in the United States is expected to reach $30 billion by 2023, from $16 billion in 2014, at an annual rate of 18.3%. Also, there has been an immense rise in awareness of eSports since 2015. The revenue of esports in 2018 reached $1.43 billion, and is estimated to reach $1.57 billion by 2019. Therefore, the rising demand for video games and increasing awareness of esports will drive the market’s growth in the forecast period.
Major players in the global esports market are Modern Times Group MTG AB, Activision Blizzard Inc., Gfinity, PLC, Turner Broadcasting System, Valve Corporation, Tencent, Electronic Arts, Inc., Hi-Rez Studios, Nintendo, and FACEIT, among others. Esports companies are investing in innovative new esports platform to increase their revenue and expand their consumer base, and also for gaining a competitive edge over their rivals. For instance, in 2019, in Africa, NickX, an esports platform launched by Viacom, provided children with a tournament platform, using Nickelodeon gaming content. Similarly, in 2019, IKON, a USA-based gaming platform company launched a new platform that allows players to challenge fans and friends in games, such as League of Legends and PUBG. Further, in 2019, Mobile Premier League (MPL), an India-based mobile esports platform company launched its mobile esports platform in Indonesia.