Market overview
Esports is set to generate nearly $1.38 billion in revenues by the end of 2022. China will generate nearly a third of worldwide esports revenues. Southeast Asia, Central Southern Asia, and Latin America are the fastest-growing regions, with 2020-2025 CAGRs of +27.6%, +23.4%, and +19%, respectively. Global esports revenues will exceed $1.86 billion by 2025, representing a healthy CAGR of +13.4%.s.
Sponsorship revenues have been the foundation on which the esports market was built, so it's no surprise that it continues to be the highest-grossing revenue stream, generating $8373 million in 2022, or nearly 60% of the entire market. Blockchain companies are boost- ing sponsorship growth in esports by investing high figures into teams and tournaments to reach the esports audience.
Digital and streaming are the two fastest-growing revenue streams for esports, with 2020-2025 CAGRs of +27.2% and +24.8%, respectively.
In 2022, the global esports audience will grow +8.7% year on year to reach 532 million. The esports enthusiast group will account for just above 261 million, while occasional viewers will account for the remaining 271 million. The number of esports enthusiasts will grow to 318 million with a CAGR of +8.1% between 2020 and 2025, when the total audience will surpass 640 million.
Esports enthusiasts represent an attractive segment for consumer brands: 74% of esports enthusiasts are full-time employees, and around 44% fall in the high-income bracket.
Key Takeaways
- Esports organizations still rely on sponsorship as the primary source of revenue for their business. By the end of 2022, we expect sponsorship to account for $8373 million--nearly 60% of global esports revenues.
- PC esports titles dominate developed markets such as North America, Europe, China, South Korea, and Japan. Mobile esports titles dominate emerging markets like Latin America, the Middle East and Africa, Southeast Asia, and India.
- Esports is set to generate nearly $1.38 billion in revenues by the end of 2022. China will generate nearly a third of worldwide esports revenues. Southeast Asia, Central Southern Asia, and Latin America are the fastest-growing regions, with 2020-2025 CAGRs of +27.6%, +23.4%, and +19%, respectively. Global esports revenues will exceed $1.86 billion by 2025, representing a healthy CAGR of +13.4%.
- The global esports audience will reach 532 million by the end of 2022. The number of esports enthusiasts is set to reach 261.2 million, while occasional viewers will make up 270.9 million. The esports audience will reach 640.8 million by the end of 2025, with a 2020-2025 CAGR of +8%.
- Twitch was the most popular games live-streaming platform in the West in 2021, seeing a +26% year-on-year increase with nearly 20 billion live gaming hours watched. YouTube Gaming was the second largest, with 4.7 billion live gaming hours watched.
Sources: Analytic company Newzoo https://newzoo.com/products/reports/global-esports-live-streaming-market-report/
Recently, Savvy Gaming Group, sponsored by the Saudi Arabian Investment Fund (PIF), bought the leading ESL platform (12,3 million users) and Faceit (22 million useers) for $1,5 billion
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