As we can see from the featured image, a secret cabal of esports businessmen are discussing the future of the esports market, and I’m going to bring you up to speed about what they’re discussing in this article (It’s actually an image of KRÜ Esports vs. ZETA DIVISION btw).
The 90s were the era of Hip-Hop and Rap music, and also civil wars. The 2000s were the era of multiplayer gaming, pop music, and also civil wars. You see where I’m going with this?
I’m going to tell you about the boom of the esports industry in recent years, from a niche underground culture to the mainstream stage; where even old-school sports organizations such as F1, Nascar and NBA are turning their attention to and virtualizing their sports. Hell, even professional F1 racers such as Cem Bölükbaşı are swapping their careers for esports.
In 2022 esports will have grown by 9% according to experts from where it stood back in 2018. It’s 1.5% higher than what’s anticipated for 2022 from the massive music industry of the U.S. Esports has come such a long way that the music business is actively collaborating with them and organizing virtual concerts now.
Ad break is over, let’s see how lucrative esports was in 2021 and how lucrative it’s going to be in the future:
Esports market 2021
In my previous article I touched the subject of how esports got affected both culturally and financially by the COVID-19 pandemic. It THRIVED alongside mask manufacturers and yes gaming has its own culture for the last 20 years, wake up samurai, we got a city to burn.
Imagine having to listen to Travis Scott in Fortnite. I’m really sorry that you’d have to imagine this. But it’s real. Esports and music biz are working together, all hope is lost.
Ok back on point, let’s talk some stats:
The worldwide esports industry was worth just over 1.08 billion dollars in 2021, up over 50 percent from the previous year. In addition, the worldwide market revenue of the esports industry is expected to reach 1.62 billion dollars in 2024 . In terms of revenue, Asia and North America now constitute the major esports markets, with China solely accounting for over a quarter of the market according to Statista. NA is the largest market by far with around 40% of the total esports revenue.
In addition, when we look at the number of the human population that’s watching esports in 2021, hold tight:
The global esports audience peaked at 474 million people in 2021. More spectators are likely to tune-in in the coming years to see their favourite games being played by some of the top gamers in the world. Globally, over 577 million people are predicted to watch esports by 2024.
That’s half a billion people consuming esports entertainment. Who would’ve thought that? Then again who would’ve thought some guy who forgot $100 worth of bitcoin in his wallet would become a potential billionaire, if he only had not forgotten his password to his crypto wallet.
When we look at which games earned the most revenue in esports in the first half of 2021 some games might surprise you:
Moving on to 2022 and beyond
If we look at the predictions for 2022 from two reliable financial sources in their fields:
According to Newzoo which almost accurately predicted the market growth of esports since 2018 and backed up by current market research: The worldwide esports sector is expected to produce about $2 billion in sales by 2022. Insider Intelligence published this statistic, which is backed up by current market research.
According to reportlinker.com: The Global Esports Market size is expected to reach $3,574.9 million by 2027, rising at a market growth of 21.3% CAGR during the forecast period.
Acumen Research and Consulting predicts a much higher number of $7131.8 Mn by 2028
TL:DR The worldwide esports sector is expected to produce about $2 billion in sales by 2022.
Mobile will almost certainly fuel the future of the esports business, lowering entrance barriers and allowing even more players and fans to enter.
Mobile gaming and Media partnerships are the future of esports
I really don’t like writing this header, nor the inevitable future of esports. I really enjoyed it more when it was a niche scene that was only about underground Quake tournaments. But it’s time to improvise, adapt and overcome.
In 2021, mobile gaming accounted for 45 percent of the overall worldwide games market. This is mostly caused by China that already has a robust mobile esports industry. This popularity is already spilling over into certain competitive sectors.
Media partnerships, sponsorships, and broadcasting rights account for the majority of esports earnings. For example:
- Amazon (European Masters)
- NASCAR (Allied Esports)
- Discord (Tribe Gaming)
- Mastercard (League of Legends European Championship)
What to take from all this
Investors would be wise to take esports seriously as a young multibillion-dollar sector and consider getting in on the action while the industry is still in its early phases of development. It is the era of esports now.
In a conversation with Insider Intelligence, Rick Yang, partner at NEA—a venture capital firm that invests in esports— stated: “I actually think of esports as the mainstreaming of gaming, or the pop culture instantiation of gaming versus the pure idea of these players becoming professionals to compete at the highest levels.”
Esports has far surpassed the point that it’s all about gaming anymore. It’s a new form of entertainment which combines interactivity, mainstream media, music business, betting sector and trade.
The heart of the Luckbox team beats for esports. If you enjoyed these predictions and analysis we compiled for the future of esports and are an avid esports fan, visit Luckbox for the latest esports news and encounters, watch your favourite teams on live, and bet on them.