Esports industry to reach $3 billion by 2025 says market reseracher

Syed Mujtaba Naqvi Published 14/07/2019

The esports business seems to be booming.

According to ResearchandMarkets.com, esports is expected to grow with a 20% compound annual growth rate between 2019 and 2025. That should see the market grow to more than $3 billion by the end of 2025. This doesn’t come as a surprise, since esports’ popularity and support have been steadily growing worldwide.

The global esports market is likely to exceed a total revenue of over $1 billion for the first time this year, as it’s experiencing year-on-year growth of over 25%. According to Statista, the market generated $865 million in 2018.

Broadcasting rights have become a key source of revenue in esports with television networks like ESPN and ABC airing esports events alongside social media platforms like Twitch and YouTube.

That growth has extended to sponsorships even moreso. The field is by far esports’ strongest revenue stream, as it contributes to almost half of the total market revenue. This has been helped along by the increased attention from non-endemic brands like Nike and Puma who have begun sponsoring esports organizations Furia Esports and Cloud9, respectively.

It’s forecasted that the audience and the number of tournaments will continue increasing over the next five years, opening up opportunities for many potential vendors.

A major share of revenue to the global esports market is generated by North America, specifically the United States. Asia Pacific is one of the fastest-growing markets, with esports flourishing in China, Japan, South Korea, and Australia.

The vast majority of esports’ audience is male viewers aged 20-35.

That said, ResearchandMarkets.com states that esports’ growth “is mainly driven by cloud gaming and mobile gaming.” This makes matters a bit cloudy in regards to how much of that $3 billion is actually being funneled towards esports organizations, players, and tournament organizers.

The topic of inflated valuations in esports has become a hot one in recent months as multiple firms have had their methods questioned for their liberal definition for what counts as “esports.”

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