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Esports and gaming industry

In recent years, Esports and gaming industry has transformed from an attractive niche to major entertainment industries. Previously, Esports was a subcategory of the sports industry, but it has rapidly grown into an independent industry and sports culture. This transformation has been triggered by the advocacy of celebrities, such as Drake and Michael Jordan. And the coverage the platform has received from global sports outlets, such as ESPN.

In 2020, global investors, consumers, media platforms, and enterprises focus on Esports, given the rise of competitive gain. Market growth trends reveal dramatic growth in esports viewership and profits. The audience for Esports is rapidly growing, and projections show that by 2023, it will rise to over 600 million.

The Esports industry is soaring in the stratosphere of success and popularity while generating billions of dollars in revenue. Are you wondering what brought about transformation? We will explore the reasons behind Esports’ rise and success in this article. Here’s everything you need to know:

Greater Social Connections 

The primary reason behind the explosive rise in E-sports profits and investments is the enhanced social component and connectivity. Live streaming and gaming platforms allow fans to enjoy a direct connection with their favorite teams and players. This social component has allowed Esports to be pop-cultured and capture a far greater audience than traditional platforms. 

All popular gaming streaming platforms and the best betting sites allow the audience to develop social connections through direct contact. Platforms such as YouTube Gaming and Twitch enable the audience to interact and connect through a wide array of features. Many Esports platforms and enterprises are also exploring other areas to collaborate with other organizations.  

Experts believe that esports has allowed gaming to emerge as a mainstream industry, allowing players to explore countless opportunities. Players have used Esports platforms to become professionals and compete in worldwide tournaments. Another reason behind the soaring success of Esports is inclusivity and collaborations with other niches and industry sectors beyond gaming. For instance, pop culture collaborations, commerce ventures, media platforms, and more. 


Given the vast potential for collaborations and ventures, the rise in investments across Esports comes as no surprise. The industry has witnessed rapid and massive increments in investments in Esports, particularly from private equity firms and venture capitalists. Research reveals that since 2018, investments in Esports have increased to $4.5 billion, with a striking growth rate of 83.7%. 

These investments get typically distributed across Esports enterprises, digital broadcasting partners, tournament operators, and other stakeholders. This rise in investments is a significant contributor that has allowed the industry to grow and expand. The Esports industry has matured at a rapid pace, transforming for arcade gaming to a highly sophisticated digital ecosystem


For the first time in 2020, Esports revenue projects have surpassed $1 billion in revenue. Research reveals that these revenues are likely to grow, soaring to $1.8 billion by 2020. It raises an important question for us: how does money flow into Esports?

It flows through live event tickets, merchandise sales, many in-game purchases, and exclusive media rights. But more importantly, over 65% of the revenues come from advertising and sponsorships. The Esports industry is attracting revenues from across the globe. In terms of revenues and audience, the three major Esports markets are North America, Europe, and Asia-Pacific markets.

The Asia-Pacific market accounts for more than 57% of the global Esports audience, and viewership has risen by 51% since 2017. In 2020, revenues are likely to soar to $138 million in Europe and $300 million in North America. Projections reveal that Latin America is one of the most rapidly rising regions in Esports. By 2023, Esports revenues from Latin America are likely to grow by $42 million by 2023. Investments are pouring into the Esports industry, as organizations and enterprises worldwide seek to collaborate with Esports organizations.


It is important to note that the increments in revenues will also bring about striking advancements and innovations in Esports. In the future, Esports platforms will get powered through smartphones. It will bring about further reductions in barriers to entry, allowing dramatic increases in the audience, players, and revenues. 

In 2020, the mobile segment of Esports will account for 45% of the world’s entire games market. China is already making significant headways into a vibrant mobile Esports ecosystem, and this trend is likely to continue. Therefore, it is right to assume that the Esports ecosystem will become more and more competitive.


Prominent market research platform, Newzoo, reveals that in 2020, global revenues from the Esports industry will cross $1 billion. These projections do not take into account the taxes raised across broadcasting channels.

Market projections reveal that in terms of revenues, China will lead the market with over $380 million in revenues in 2020. North America will claim the second place with total revenues surpassing $250 million. The Esports industry is likely to grow dynamically in the next few years, in terms of market share and revenues. 

In 2020, the global audience will grow by more than 490 million viewers. There will also be increments in revenues through sponsorships and media rights. Consumer spending on merchandise, in-game purchases, and tournament tickets also account for the increases.

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