How Is the Esports Industry So Valuable?

How Is the Esports Industry So Valuable?

Online Games
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Not all industries in the world took severe hits after the COVID-19 pandemic took the planet by surprise but in a devastating way. The video gaming industry and its subsequent subpar, the Esports industry have thrived, even at times where uncertainty has been an everyday thing in the world of business and innovation. From video game sales, streaming services devoted to the world of competitive video gaming to platforms offering the opportunity to bet on Esports, the revenue streams seem endless and in continuous expansion.

With an industry that’s on a constant and apparently nonstop revenue and popularity climb, just how valuable is it, what are the main keys to its success and how much more will it continue to grow? Let’s take a look.

How Much Is The Esports Industry Worth?

It’s not a secret to anybody that the video gaming industry has always been one of the most lucrative enterprises in the world. Ever since the first games and consoles hit the world markets a business as well as social and cultural phenomenon was started. One that many years later is still as strong as present as ever. As time has gone by and with technology always in a constant state of improvement and renovation, the video gaming industry has always been at the helm of all the constant changes and upgrades, making sure that their loyal fans are always able to have the best options available for their enjoyment. Just the video gaming industry alone is expected to finish out the year 2021 with total revenue earnings of almost $180 billion.

Now when you talk about Esports, aka, the world of competitive video gaming, the scopes and reality of matters take a whole other meaning and of course value. Esports have become the sports discipline for those who don’t necessarily cut it to be a professional athlete in other more physical fields. This has drawn the attention of millions of fans around the world, who are avid video game lovers who now have a professional sport of their own to feel represented with. Just the Esports industry alone by the year 2022 will be worth around $1.9 billion, with its revenue coming from all the exposure it earns day in and day out thanks to the reach it’s been able to obtain with its fans.

Where Do The Revenue Streams Come From?

With a company that is earning as much money as the Esports industry is, already in a strong pace to be able to surpass other main sporting leagues and organizations in earnings and fan reach, the revenue streams and strategies for earning them have become as important as the relevance that the gaming activities have. Esports leagues, teams and athletes have become as important as their counterparts in all of the other major sports industries like FIFA, NFL, NBA, MLB and others around the world. Their level of exposure and influence is one that is hard to be contested, which ultimately has ended up leading to the Esports industry becoming a major player in the sports entertainment world.

Two of the most important lines of revenue from which the Esports industry has thrived, thrives and will continue to thrive in the future are advertising and sponsorship deals. On the one hand, advertisement revenue is comprised from the advertisement spaces, like ads shown during gaming live streams, during official Esports matches or tournaments and other activities like these. Business giants such as Intel, Samsung, Red Bull and Coca Cola have all already jumped into the craze and began trying to make their presence felt as much as possible, especially given the buying power that the vast demographic of Esports fans possess. Given the fact that advertising in Esports events, channels and other streams is still cheaper than what it’s worth in traditional sporting leagues, both the Esports industry and their respective advertisement partners have found new and simpler ways to flourish with ever growing revenue projections in constant growth.

Apart from advertisement, the other great producer of revenue for the Esports industry is the addition of gaming/tech sponsors as well as lifestyle and non-endemic brands sponsors in their day to day activities. Sponsorship has become the largest revenue driver in the industry with almost 50% of the revenue production. While at the beginning video game producers trying to get the whole Esports craze of the ground and running would have to knock on doors to explain what they were doing and see if they could get some minor sponsorship deals, the tides have definitely turned with companies from all walks of life wanting to be in the Esports game now and especially towards the future.

How Much More Will The Industry Grow?

With an industry whose real scope of growth and popularity is hard to try and pin down, there is no real way to describe and measure how much more they will grow. With their total market value ready to hit the $2 billion mark by early 2022 it is only expected for it to continue growing and growing more. It shall come as no surprise if by five years from now the Esports industry has surpassed other traditional sporting organizations and leagues in popularity, exposure and revenue, becoming the front runner for most important sporting activity in the world.