SAN FRANCISCO, July 2, 2020 /PRNewswire/ -- The global Esports market size is expected to reach USD 6.82 Billion by 2027, registering a CAGR of 24.4% over the forecast period, according to a new report by Grand View Research, Inc. The market is expected to grow on account of the increasing popularity of video games, rising awareness regarding Esports, and increasing mobile usage in emerging countries.
In alignment with the dynamic entertainment industry, consumers are demanding interactive, and high-quality gaming content. This demand is expected to extend the entire sports industry's growth, from small developers and big-budget games to influencers who stream their gameplay. The Esports industry is witnessing revenue growth owing to the significant audience growth and increasing investment from commercial partners. The industry has become more structured with associations and league formats evolving new competition structures. Additionally, the growing mergers and acquisition activities in 2018 have reflected strong market growth.
Key suggestions from the report:
The prominent brands are ensuring long-term sponsorship relations with top brands such as ESL, which presumes the strong growth of sponsorship segment over the forecast period
Mobile Esports is expected to make significant inroads resulting in more viewership in the forthcoming years
Franchise and league game formats are expected to broaden the horizon of the industry over the forecast period, thereby driving the industry growth
The industry is looking forward to the introduction of the 5G network, which has faster, more reliable streaming capabilities. This development is expected to open growth avenues for sports broadcasters
Asia Pacific is expected to lead the market growth over the forecast period, with China playing a crucial role in the development of the regional Esports ecosystem.
The popular streaming platforms, such as Twitch has propelled the gaming and Esports toward the mainstream. The Esports tournaments have drawn the attention of celebrities and athletes, which can attract a large audience. Moreover, these sports possess a unique capability to capture young and enthusiastic viewers who are difficult to reach via traditional media. Such capability has created sizeable opportunities for brands to invest in advertising and sponsorships, thereby propelling the market growth. Investors' interest is likely to increase with the introduction of the more franchise-style league, the centralization of an Esports team, and continued rise in audience. Moreover, the companies are trying to monetize the rising level of interest through various sources.
Apart from sponsorship, the merchandise and ticket sales are integral revenue streams driving the industry growth. The franchisee is embarking on the new sports model that includes city-based teams hosting local events with thousands of fans' attendance in the stadium. Such events are significantly generating revenues, thereby contributing to the market growth. The Esports apparel market has experienced significant growth in recent years owing to increased retail presence, growing fanbase and league-level merchandise deals. As the teams can individually sell their merchandise to their fans, Esports teams no longer need to rely on winning competition and prize money as a core revenue source. Recently, in 2019 Team Liquid, a Netherland based multi-regional Esports organization, partnered with Marvel Entertainment to offer superhero-themed merchandise including jerseys and t-shirts.
Grand View Research has segmented the global Esports market based on revenue source and region:
Esports Revenue Source Outlook (Revenue, USD Million, 2016 - 2027)
Merchandise & Tickets
Esports Regional Outlook (Revenue, USD Million, 2016 - 2027)
Video Streaming Market– Innovations, such as blockchain technology and Artificial Intelligence (AI), to improve video quality are expected to boost the market growth. AI is playing an essential role in editing, cinematography, voice-overs, scriptwriting, and several other aspects of video production and upload.
Digital Video Advertising Market– Technological advancements and changing consumer behavior have propagated advertisers to adopt innovative ways of digital video advertising. There is a growing trend amongst individuals to adopt visual media via platforms other than traditional cable and satellite TVs.
Retail E-Commerce Market– Increasing usage of smartphones and the convenience of purchasing daily essentials and luxury products from the comfort of home is primarily driving the growth.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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