ESports to See Good Growth Over Next Few Years Set to Make $1.1 Billion by 2019
Esports is a big business, and one that is expected to grow even bigger over the next few years. We’ve already written about one prediction that said by 2018 it will grow to $2 Billion, now another says that this value will be a more conservative $1.1 Billion by 2019.
This value was reported by VentureBeat based on findings by market researcher Newzoo. In it he predicted that the global eSports market is expected to grow 43% from $325 million to $463 million in 2015. This will then grow to $1.1 billion by 2019.
“In 2016, North America will strengthen its lead in terms of revenues with an anticipated $175 million generated through merchandise, event tickets, sponsorships, online advertising, and media rights,” said Pieter van den Heuvel, esports analyst at esports, in a statement. “A significant part of these revenues flows back to the game publisher, but across all publishers, more money is invested into the esports economy than is directly recouped by their esports activities.”
He also added:
“China and Korea together will represent 23 percent of global esports revenues, totaling $106 million in 2016. Audience-wise, the situation is different, with Asia contributing 44 percent of global esports enthusiasts. Growth in this region is, for a large part, fuelled by an explosive uptake in Southeast Asia.”
Peter Warman, CEO at Newzoo commented on the report in a statement that read:
“The initial buzz will settle down, and the way forward on several key factors, such as regulations, content rights and involvement of traditional media, will become more clear,” Warman said. “The collapse of Major League Gaming (acquired by Activision) was a reminder that this market still has a long road to maturity and we need to be realistic about the opportunities it provides.”
So while downplaying the growth of eSports in the statement, he is also confident that it will do well. We’ll just have to see how well the professional side of gaming grows in the next few years.
Are you impressed with the growth of eSports? Let us know your thoughts in the comments section below.