The Rise of the Esports Industry and Why Now is the Best Time to Invest in It

March 12, 2020

The Esports industry has developed remarkably well in the past decade, and its future looks brighter than ever. It already generates billions of dollars in revenue and connects millions of players and fans from all over the world. Viewership increases regularly thanks to social media, and some of the online competitions attract more supporters than real-life sports.

If you want a piece of the pie, now is the time to invest in Esports!

How Big is the Esports Industry?

According to this report from Newzoo, the Esports industry grew from an audience of 281 million viewers in 2016 to 380 million fans worldwide in 2018. By 2021, the experts predict that there will be more than 557 million people watching Esports regularly or casually worldwide.

The remarkable growth of Esports is due mainly to the advent of video game influencers. Experienced players started posting tutorials and live competitions on social media platforms like Twitch and YouTube. They became so successful that casual players started investing more time in watching other people play their favorite games than gaming on their own.

A growing number of people are spending more time watching Esports. This report from Statista shows that the global audience that is aware of electronic sports events and tournaments has increased from 809 million in 2015 to 1.572 billion in 2019.

Another Newzoo study reveals the staggering growth of Esports revenue, which grew from $493 million in 2016 to $1.650 billion in 2019. Sponsorships make a large part of the revenue with almost 40% of the entire generated value.

The media revenue represented only 18% of the global revenue in 2019, but it should rise in the upcoming years as a result of increasing demand for more content from users of the big social media networks.

The games industry could not stay aside and simply watch this impressive social phenomenon to develop. Big companies in game development started supporting Esports competitions to increase brand awareness and boost their pool of potential customers. Additionally, they also offer substantial incentives to influencers in exchange for more gameplay time on their channels.

Why Invest in Esports Today?

As you can see, the Esports industry is growing at a remarkable speed. More money is coming in, and more fans tune in every day. Major IT companies already trade stocks in Esports publicly. Some of them include Take-Two Interactive Software (TTWO), NVIDIA (NVDA), Activision Blizzard (ATVI), and Electronic Arts (EA).

In 2018, the Esports industry attracted investments of over $1.95 billion, and that figure should be exceeded by the end of the current year. Giant companies like Amazon and Google are already planning to release gaming cloud services for Esports players and fans. So, the prospects of the industry look bright, to say the least.

If there was a perfect moment for investing in Esports, that would be NOW! If you have room in your portfolio for new investment, electronic sports should take it. Enter the game and discover how living in the moment can provide you with quick and substantial ROI.