Last week, ResearchAndMarkets.com released key findings from its study into the global esports market. It was exciting reading for all involved in the global esports industry.
Let’s get to it. Predictions suggest the global esports market is set to triple by the year 2025, with a Compound Annual Growth Rate (CAGR) or 20% a year across the industry as a whole between 2019 and 2025.
The report reveals the current major players in the esports industry will play leading roles in nurturing this increase. China, Japan, the United States, Germany, South Korea, France, Canada, and the United Kingdom should all lead the way.
The research also indicates that the increase in cloud gaming will foster new forms of play through smartphones and other technology. This, combined with the fact that esports is now attracting large viewer numbers, means the industry will continue to expand its audience globally. More players, investors, and sponsors should follow.
Is there anything truly surprising in the research?
In truth, for many people that have an interest in the esports industry, ResearchAndMarkets.com’s latest report doesn’t really tell them anything new. Analysts have predicted a healthy growth rate into the mid-2020s for some time now.
Furthermore, the types of esports the report highlights fueling the growth—Real Time Strategy, Massive Online Battle Arena and First Person Shooter games—are all essentially the same game types that have proven hugely popular now.
Then, there are the locales to analyze. How much further do some of these nations have to go, for example? Few countries are as esports-savvy as South Korea, where top esports stars are akin to music or sporting stars in other countries. But is that level of attention replicable everywhere?
Another surprising comment in the research for me is the assertion that “the market is expected to witness an increase in the number of audience and tournaments in the forecast period, which may lead to a greater number of vendors (including game publishers and gaming organizations) entering in the market.”
In CS:GO at the moment, there is a great debate about the watering down of existing competitions through new events. The general feeling is that this increase weakens quality competition. Could that problem spread to other esports?
Of course, that’s not a problem with less established titles, at least for now. Bring on the Call of Duty World League and the Road to the FIFA eWorld Cup. Bring on the rise of the Autobattler.
Is anything important missing from the research?
While the research does cover many important areas, there are some issues which I feel the report glosses over.
The franchise model, for one, isn’t investigated nearly enough. Certainly, the success of the Overwatch World League and League of Legends leagues show it can be a profitable way to start up a new tournament with investors seeking longer-term returns.
Measuring the impact of the franchise model, if rolled out across other esports, would have been interesting reading.