In 2022, the eSports market is expected to grow by 21.8% compared to 2021. This is a sector that was already breaking records in 2020 and which continues to grow. By the end of the year, it could reach $1.38 billion in revenue compared to $1.13 billion in 2021. This is explained newzooa company specializing in the analysis of video game market data, in a report published on April 19, 2022.
Esports dominate in Asia-Pacific countries
Currently, a third of the revenue generated by eSports comes from China. The country counts at least 720 million players according to a market study carried out by Niko Partners in 2020. Asia-Pacific countries are estimated to account for $590.2 million in revenue, or 42% of the total, by the end of 2022. Those numbers remain impressive as the Fortnite juggernaut is no longer playable in China since last year.
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The largest share of eSports-related revenue would come from sponsorships, with an amount of $837 million. Companies are looking for other sources of income such as the sale of digital products, loyalty programs or even the use of eSports in education. The report also highlights the importance of content localization. Fans do not have the same expectations from one region to another and companies must adapt to each audience.
Competitive PC gaming dominates in developed countries like China, North America, South Korea, Japan, and countries in Europe. While developing countries in Latin America, the Middle East, Africa, Southeast Asia and India mainly play on mobile.
Over the years, eSports revenues have experienced a significant increase.
Screenshot: Esports Report / Newzoo
Streaming and mobile in the spotlight
Game streaming contributes to the growth of eSports and would represent a 24.8% increase in revenue between 2020 and 2025 according to the report. The League of Legends World Cup broke all records in 2021 by reaching 73 million simultaneous spectators, a 60% increase compared to the 2020 edition, according to Riot Games numbers. Newzoo’s report goes in this direction, since according to him, the global audience of eSports should increase by 8.7% in 2022 to reach 532 million spectators worldwide.
Twitch and YouTube Gaming are the two biggest players in streaming. Tencent has, moreover, recently made the decision to abandon its competing service in China. 20 billion hours of competitive streaming are expected to be watched on Twitch by the end of 2022 and 4.7 billion hours on YouTube. If the trend continues, 261 million people will watch eSports more than once a month and 271 million viewers will watch less than once a month.
Mobile will become an increasingly used platform for consuming eSports. The recent release of League of Legends: Wild Rift on smartphones shows Riot Games’ desire to seek out a new audience. Newzoo also points out that companies like Moonton (Mobile Legends) and Garena (Arena of Valor) are also investing in this sector. If this mobile and streaming craze continues, esports is expected to be worth $1.86 billion and reach an audience of 640.8 million viewers by 2025.
