2.2 - Esports Revenue Streams
Multiple ways to generate revenue
According to ReserchandMarkets.com's Esports Global Market Report 2021: COVID-19 Growth and Change to 2030, "The global Esports market is expected to reach $289 billion in 2025 at a compound annual growth rate (CAGR) of 23%."
Where does the Esports market get its revenue?
Money flows into Esports through media rights, live event ticket sales, merchandise sales, and in-game purchases, but most of the revenue (69%) comes from sponsorships and advertising, per Newzoo figures cited by Statista.
- Asia-Pacific (APAC), North America, and Europe are the top three Esports markets, respectively, in terms of audience and revenue. APAC will account for over half (57%) of global Esports viewership in 2019, up from 51% in 2017, per Newzoo. Meanwhile, North America is set to hit $300 million in Esports revenue this year, while Europe is expected to reach $138 million, per PwC estimates.
- The rest of the world only accounts for about 15% of total Esports revenue, but it contains several regions to watch. One of the fastest-rising regions is Latin America, which is expected to hit $18 million in Esports revenue in 2019 before skyrocketing to $42 million by 2023, per PwC estimates.
- The future of Esports will likely be powered by mobile, which will further reduce barriers to entry and allow even more gamers and fans to pour in. The mobile gaming segment is set to make up 45% of the total global games market this year. That popularity is already spilling over into some competitive spaces, as China already has a thriving mobile Esports scene.
That growing revenue stream comes from around the world