Since 2013, the esports industry has experienced monumental increases in popularity and value. In 2017, it was estimated that less than a decade prior, esports as a whole was worth less than $100 million. By 2018, that figure had multiplied rapidly, and the industry boasted a remarkable value of more than $800 million. Now, a comprehensive tech report from Technavio suggests that the esports industry will be worth more than $3 billion by 2025.
In this release, Technavio had compounded the expert findings of more than 17,000 individual reports from across the industry. Ultimately, it revealed that there are only great things in store for the esports industry, which is set to experience overwhelming growth in the next four years.
Driving The Expansion
Reportedly, one of the key drivers behind the exponential increase in value is the growing number of esports events. Every year in the esports schedule, we’re seeing a sharp uptick in the number of tournaments and competitions hosted all around the world. Although it’s what’s known as a ‘fragmented industry’, the sheer diversity of titles and platforms makes for an extremely mixed bag.
For example, there are top-tier CSGO tournaments, the Call of Duty League, R6S invitationals, and League of Legends competitions. These are some of the most highly-anticipated events, but there are quite simply thousands of smaller events littered around the industry schedule.
And, of course, these events are almost always driven by titans of industry like Activision Blizzard, Electronic Arts, and Epic Games. These organisations boast multi-billion dollar values, and today, they’re rivalling the world’s top traditional sports companies and platforms.
In 2021, Activision Blizzard reported a staggering $2.3 billion in revenue in one single quarter. There’s a vast amount of money to be made in esports, and these organisations are capitalising on that potential in earnest.
Consider The Statistics
Reportedly, the bulk of esports’ growth will be attributed to the APAC region. It’s here that more than 43% of growth is expected to occur, contributing to a considerable CAGR of approximately 18% overall.
In almost every area of the esports vertical, the numbers are experiencing a sharp and consistent rise. For example, esports betting is bigger than ever, with many of the world’s best bookmakers now covering a multitude of esports tournaments.
Furthermore, sponsorship and marketing opportunities are exploding in value. These days, brands are just as likely to sponsor an esports competitor as they are a real sports personality. Also, many traditional brands and companies are moving to form lucrative partnerships with esports platforms.
Recently, we explored news such as BIG Esports partnering with crypto trading platform, Coinbase. That’s another huge area of exploration for esports, as both crypto and esports appear to be growing in tandem, in some ways.
How To Take Advantage
The British Esports Association set out a few best practices for organisations seeking to take advantage of this massive growth.
- Platform providers: Strive for exclusivity with broadcasts.
- Tech companies: Extend your offerings to to platform providers.
- Tech companies: Assist with monetisation of spectatorship.
- Mobile players: Be alert to opportunity – a huge portion of growth is set to come from the mobile platforms.
And of course, as a player or bettor, keep boosting these events and tournaments as and when they happen.