eSports
Esports Market Surpass $ 7131.8 Mn by 2028 Says Acumen Research and Consulting Experts
Global Esports Market size is estimated to grow a CAGR above 25.1% over the forecast timeframe and reach a market value of around USD 7131.8 Mn by 2028.
Esports is a burgeoning global industry in which skilled video gamers compete. Globally, time spent on mobile devices has officially surpassed time spent on television, with users spending eight minutes more per day on their mobile devices. By 2021, this figure had risen to more than 30 minutes. Over 380 million people watch esports worldwide both online and in person.
Covid-19 impact on Esports Market
Despite widespread economic disruption caused by the coronavirus, the global video game industry is thriving. The coronavirus is not immune to gaming. Esports, with its reliance on live events, was one of the first sectors to be affected. The majority of esports events have been cancelled or postponed, though some are still taking place without spectators. However, today the industry is performing outstanding driven by increasing number of global tournaments, growth in number of regional events, etc.
Global Esports Market Dynamics
The growing youth population and changing lifestyles have both contributed to an increase in demand for video games and online video games over the years. Growing audience reach and engagement activities, significant investments, rising live streaming of games, and expanding infrastructure for league tournaments are key factors driving the market growth. Global online platforms such as Facebook, YouTube, and Twitch, which allow streamers to gain popularity and impressive earnings, have contributed to the esports market share’s increased growth. Increased smartphone penetration and improved internet connectivity have resulted in a rapid increase in the number of gamers.
However, certain constraints and challenges are likely to impede the overall growth of the Esports Market. The fraudulent betting that is leading to game piracy poses a threat to the market. Additionally, the market’s growth has been hampered by a lack of tournament infrastructure and a small number of organizations. The video game industry is rapidly evolving from a casual hobby to a professional career opportunity, which is also a global esports market trend. Moreover, large-scale esports investments are expected to fuel the esports industry’s growth. Furthermore, the increasing adoption of advanced gaming technologies increased smartphone penetration, and improved internet connectivity has increased the number of gamers, positively influencing the market growth.
Sponsorship accumulated for the impressive shares in the global esports market scenario
In 2020, the sponsorship segment acquired the largest shares. The well-known gaming/tech esports sponsors are increasing their involvement as the industry intensifies. Sponsorships are important in the esports industry because an increasing number of companies are investing in them. Furthermore, with rising player wages and an expanding esports market, the introduction of new sponsors is critical for esports’ long-term commercial success. To increase their brand value gaming as well as non-gaming sectors are also investing in the esports industry.
On the other hand, the media rights segment is anticipated to witness the fastest CAGR throughout the forecast period 2021 – 2028. Media companies pay exorbitant fees to win the exclusive right to broadcast the live streaming of major sporting events. Esports is made up of thousands of individual leagues, and events, and the media rights deal, thus the media rights segment is likely to register the fastest growth in the esports industry.
Esports Regional Stance
The global classification of the esports market includes North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among all the regions, North America conquered the global market with the largest shares in 2020. The growing number of investments and technological expansions are the key aspects that continue with the franchising North America League of Legends Championship Series (NA LCS) and Overwatch League are fueling the North American esports market. However, the Asia-Pacific esports industry is expected to dominate the market in the coming years. Due to the COVID-19 outbreak, Asian gaming behemoths such as Nintendo and Tencent saw increased sales in the first quarter of 2020. This trend is expected to continue, as an increasing number of gaming companies collaborate with sports organizations to provide virtual tournaments to sports fans. Furthermore, Asia-Pacific is also expected to register significant growth.
Major Players
The esports market is consolidated with a large number of players. The prominent players presented in the report include Activision Blizzard, Inc., Valve Corporation, Tencent Holding Limited, Modern Times Group, Faceit, Electronic Arts Inc., Gameloft SE, Nintendo of America Inc., NVIDIA Corporation, Wargaming Public, and others.
For instance, on September 29, 2021 – Electronic Arts Inc. and FIFA have announced the launch of a new EA SPORTS FIFA 22 esports program that is expected to attract millions of players and viewers. In 1v1 and 2v2 competitions, players will characterize themselves, globally recognized e-sports organizations, real-world football clubs, and their country in a series of FIFA esports events.
Moreover, in November 2017 – Electronic Arts and FIFA collaborated to launch an esports tournament series for the Electronics Arts FIFA video game franchise.
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Angela Bernhard Thomas
CAPCOM’S STREET FIGHTERTM 6 GOING TO COLLEGE THIS FALL
- CSMG will create and operate College Street FighterTM Tour in North America for the 2024-25 academic year
- College conference Street Fighter 6 champions will punch their ticket to the national Collegiate Esports Commissioner’s Cup (CECC) & May Madness in 2025
eSports
R&D rethink needed for sportsbooks to harness esports’ power
Esports betting is still grappling with a perception problem amongst operators. Despite the leaps and bounds in product development made by suppliers – particularly in the last two years – esports hasn’t shaken off the image built in the late 2010s.
Our good friend, Oliver Niner, Head of Sales at PandaScore, has been kind to share the below article with us.
There’s scepticism around esports betting’s value, how well it can actually perform and what’s needed to make it appeal to bettors. A big part of that comes down to perception, which shapes the research and development (R&D) choices made by each operator.
Self-fulfilling prophecy?
Operators who have put the research and development (R&D) resources into esports are seeing excellent growth, while others are still treating it like part of a long tail. The lack of a uniform approach to esports often translates into hesitancy to be bullish and invest in esports.
Whereas in the United States, post-PASPA sports betting has exploded and operators are seeking to capture as much territory and market share as possible because in most cases, you switch the lights on and the money comes in. It’s, of course, good business sense to take opportunities like this – you can apply the same templates used elsewhere on an incredibly lucrative market.
This kind of approach has been attempted for esports and hasn’t found the same success. Granted, the legislation for betting on esports has been somewhat slower than that of sports betting and iGaming.
However, bullish operators have acknowledged the fact that esports hasn’t found the same success in regulated states and asked what can be done differently, while for others, esports has been thrown into the too-hard basket or relegated to the bargain bucket.
For the latter, the fate of the esports vertical becomes a self-fulfilling prophecy – especially if an operator already using a budget esports product that throttles its very growth.
It takes two to tango
When esports is discussed in broader betting circles, you’ll often hear different versions of the same talking point: the problem with esports is no one is doing it well, it doesn’t innovate.
This argument is a case of the pot calling the kettle black. Esports is a driver of innovation, and it is sportsbook R&D that is holding it back.
Multiple suppliers on the market are investing significant resources into R&D, and bullish operators are leveraging these product innovations to acquire new customers and create engagements made for the internet age.
There are understandable reasons why sports betting doesn’t innovate. It’s largely because operators focus on acquisition, entering new territories and spending money on data rights. But the actual R&D on sportsbook products is left lacking, with ever-increasing cost-per-acquisition (CPA) numbers a clear symptom of this.
It means that if an operator does decide to use or acquire an esports specialist supplier but does little to cater its product and attempts to just lay the sports betting template over the top, of course performance will be throttled.
It’s like putting a Ferrari engine in a Prius – no offence to Toyota or Prius owners.
The same problem exists on the platform supplier front. Platforms are understandably focused on compliance and getting customers live, not necessarily improving models or their products.
Even the idea that if you just acquire an innovative company the problem is solved or you have found the solution, doesn’t hold water. In many cases, the company is acquired and plenty of noise is made about it, but there’s little organisational investment in R&D afterwards.
It’s not just in esports
These problems extend to customer acquisition and marketing for most emerging markets, not just esports. There’s a rush to use the same old playbook in newer sectors because it’s easy.
The fantasy vs. house sector in the US is already experiencing an acquisition arms race. As analyst Dustin Gouker points out, deposit match bonuses for new users on fantasy vs house products have jumped from $100 to as high as $500 in some places.
This is the same race that played out in sports betting and despite the costs, there’s little effort from most operators to try something different. There’s less work when you just put the same acquisition template on an emerging sector and call it a day. This seems to be an accepted practice in the industry, for better or for worse.
Esports betting success requires ongoing dialogue
Rather than attempting to wedge esports into hegemonic sportsbook approaches, sportsbooks need to take a completely unique approach.
The fact is the betting sector has barely scratched the surface – communities of esports fans are still dormant. Canadian operator Rivalry has built a successful, esports-first business by embracing the ever-changing internet culture that esports inhabits. French esports organisation Karmine Corp recently sold out a 30,000-person stadium for an event with no prize money up for grabs.
Innovative products developed on the supplier side like microbetting and betbuilders are only half of the equation.
Maximising esports revenues requires institutional investment, ongoing R&D and collaboration between suppliers and operators to create products and experiences. This includes having staff on the operator side that can drive and push the product further, and crucially, rethinking current sportsbook strategies and practices.
Building experiences for betting’s greatest emerging market – one that caters to your future core audience – takes investment, innovation and a willingness to experiment. If the industry wants to make the most of the Millennial and Gen Z audience that will become its primary customers, investment into R&D and close collaboration between suppliers and operators is needed. Many hands makes light work.
eSports
ESIC Announces Establishment of Global Esports Industry Advisory Board
The Esports Integrity Commission (ESIC) is pleased to announce the establishment of its Global Esports Industry Advisory Board, designed to enhance integrity and ethical practices across the esports landscape. The Advisory Board will serve a pivotal role by providing expert advice to ESIC’s Chief Executive Officer on a range of critical industry issues.
The primary function of the Advisory Board is to create a robust framework for integrity and fairness, setting a global benchmark for ethical conduct and fair competition in esports. The board will offer strategic insights, help shape policies governing fair play, liaise with key industry stakeholders, and act as ambassadors advocating for ethical practices.
ESIC has appointed two highly esteemed members to inaugurate this board:
- David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG), joins the Advisory Board with over fifteen years of experience in the video games industry, including significant roles at Activision-Blizzard and Electronic Arts. David’s profound impact on international and public affairs initiatives makes him an invaluable addition to the board.
- Robbie Douek, CEO of BLAST, also joins the Advisory Board, bringing a wealth of experience from his roles at Google and Disney, along with his leadership through major acquisitions. Robbie is celebrated for his strategic leadership and his instrumental role in elevating esports to a significant global entertainment platform.
The formation of the Advisory Board is an engagement that underscores the commitment of its members to upholding and promoting the highest standards of integrity within the esports industry. The board will meet as required to address strategic challenges and ensure that ESIC’s initiatives effectively meet current and future industry needs.
“Both David and Robbie bring a remarkable depth of knowledge and a passion for advancing the integrity of esports,” said Stephen Hanna, CEO of ESIC. “Their expertise will be crucial as we navigate the evolving landscape of esports and strive to maintain the integrity that our community expects and deserves.”
Robbie Douek, CEO at BLAST, said: “I’m honoured to be given the opportunity to support the Global Esports Industry Advisory Board and ESIC in their ambition to create the best and fairest environment possible for players, teams and fans.”
David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG) also commented: “It is a true honour to join the Global Esports Industry Advisory Board and support ESIC’s successful journey. Fairplay and integrity are at the core of esports. We owe it to the players and to the fans and for a better endemic industry governance”
The post ESIC Announces Establishment of Global Esports Industry Advisory Board appeared first on European Gaming Industry News.
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