E-Sports Market Crucial Study of Industry, Top Players and Forecasts till 2022
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With e-sports becoming engrained in DNA of various successful competitive games, the publishers are actively focusing on expanding their franchise as spectator sports for engaging their current fans, and attracting new ones. Usually lacking in resources and experience, these publishers seek the white-label organizers in helping them to set up events and leagues across their franchises. For majority of the game publishers, the business of e-sports is currently futile. However, their investment gets justified by the positive influence on game revenues, and on their e-sports activities’ future potential as a standalone business. E-sports is not only witnessing an exponential expansion as new independent business, but also accelerating convergence of several established industries. A chance in capitalizing on the favorite pastime of millennial and digital natives – watching game content and playing games, is being provided by e-sports to media, broadcasting networks, and entertainment companies. With the introduction of live events and streams, gaming has entered the area of media and broadcasters, who may now utilize their advertising business models for tapping into the market that was out of their reach previously.
8 Key Takeaways from Fact.MR’s Report on Global E-Sports Market for Forecast Period 2017 to 2022
1. Online mode will continue to be the largest design mode segment of e-sports adopted around the world, with revenues estimated to hold approximately 50% market share over the forecast period. But, online design mode of e-sports will lose 114 BPS in its share of the market by 2022-end.
2. Local Area Network design mode of e-sports is poised to exhibit the highest CAGR through 2022.
3. On the basis of genres type, racing and real-time strategy are estimated to ride on similar CAGRs through 2022. The real-time strategy genre of e-sports will account for the largest share of the market, in terms of revenues, during 2017 to 2022.
4. Fighting games are expected to remain the second most lucrative genre of e-sports, in terms of revenues.
5. Based on buyer type, promotional segment is projected to register the fastest expansion in the global e-sports market through 2022.
6. Institutional segment is estimated to be the most lucrative buyer type segment, with sales poised to account for nearly US$ 200 Mn revenues by 2022-end.
7. North America’s dominance in the global e-sports market is expected to remain unchallenged, in terms of revenues. This is partially attributed to the teams of North America, and their great hospitality to myriad new non-academic sponsorships, along with a number of world’s largest leagues & tournaments hosted by this region. These incidences are anticipated to create a huge amount of sponsorship money.
8. Key players in the global e-sports market include Valve Corporation, Zynga Inc., Activision Blizzard Inc., Tencent Holdings Limited, GungHo Online Entertainment, Inc., Nintendo Co., Ltd., Electronic Arts Inc., Microsoft Corporation, and Sony Corporation.
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North America’s Dominance in Global E-sports Market to Prevail
North America will remain dominant in the global e-sports market, in terms of revenues. The dominance of North America in the market is partially attributed to North American teams, which have welcomed a large number of new non-academic sponsorships, coupled with several world’s largest tournaments and leagues hosted by the region. This further generates a large amount of sponsorship money.
Based on genres type, real-time strategy is expected to account for the largest revenue share of the market over the forecast period. In addition, real-time strategy and racing are both expected to expand at 4.9% CAGR through 2022. Fighting games will continue to be the second largest genres type segment in the market, in terms of revenues.
Online mode is expected to be the most lucrative design mode of e-sports across the globe, with revenues poised to account for nearly half share of the market during 2017 to 2022. However, online mode is anticipated to lose 114 BPS in its market share by 2022-end. Local Area Network (LAN) design mode of e-sports is projected to exhibit the fastest expansion through 2022.
On the basis of buyer type, Institutional segment will continue to retain its dominance in the market. Revenues from this segment will reach approximately US$ 200 Mn by 2022-end. Promotional segment is estimated to exhibit the highest CAGR in the market through 2022.
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