Market Trends of eSports Industry
This section covers the major market trends shaping the eSports Market according to our research experts:
Advertising to be the Largest Sources of eSports Revenue
- The advertising comprises the revenue generated from the advertisements targeting esports viewers, including ads shown during live streams on online platforms, on video-on-demand content of esports matches, or esports TV.
- The top video games globally now include Dota2, Fortnite, League of Legends, Counter-Strike: Overwatch, and Global Offensive. The video game industry has developed from a pastime to a viable job path. Due to the huge amount of interest in esports competitions among spectators, investors, including celebrities and global brands, are becoming sponsors.
- The number of viewers and fans has grown steadily over the past few years, opening up new growth opportunities and increasing investment. Investments in this area have advanced significantly in recent years thanks to the ecosystem, which offers a variety of investment opportunities across several subsectors. The key market draw is traditional venture capital firms, strategic investors, and private equity.
- The esports degree program is offered by Ohio State University, Becker College in Massachusetts, and Shenandoah University in Virginia. Additionally, esports competitions and other games like conventional soccer are being held in more than 100 high schools around the United States. The University of California Irvine offers scholarships to the top 6 players, as are several other institutions, to boost the program's expansion.
- Hence, all the above factors are expected to contribute to the advertising segment for generating revenue for the eSports market in the forecasted period.
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Asia-Pacific is expected to dominate the Market
- In the Asian-pacific region, China is anticipated to hold a significant market share in the eSports market owing to the popularity of esports among the youth and supportive government support for the market's growth.
- For instance, Hangzhou ( a city in China) could plan to build 14 esports facilities before 2022, and it is expected to invest up to CNY 15.45 billion (USD 2.22 billion). This investment is expected to make it the esports capital of the world.
- Moreover, Hangzhou will host Asian Games in 2022, where esports is expected to be an official medal event. With its investments, China is expected to hold a significant market share.
- Furthermore, Tencent Holdings Limited, a significant player in the eSports industry, is headquartered in China and played an influential role in the increase of eSports in China by developing games like "Honor of Kings," which was a huge success. Tencent Holdings Limited plans to expand tournaments for hugely popular games like "League of Legends" and "Honor of Kings in China, " which will attract global players and viewers.
- The prize pool for the 2022 Honor of Kings World Champion Cup (KCC) will be USD 10 million (EUR 8.2 million), according to Allan Zhang, general manager of Tencent TiMi Esports Center, who announced during the Tencent Global Esports Summit. Zhang explained that 16 teams from the King Pro League (KPL) in China and other international locations would participate in the competition after 2022.
- The competition will set a new record for the largest prize pool in mobile esports, which is a significant development for the industry. The honor of Kings and its developer Tencent's TiMi Studio have made their intentions for esports clear as one of the most lucrative games globally.
- Hence, the increasing investment in eSports in the country is expected to augment the China market.
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