Newzoo 2020 Global Esports Market Report brings Key Trends, Market Sizing & Forecasts Special Focus Topics and Rankings. See the Key Takeaways below:
- Global esports revenues will grow to $1.1 billion in 2020, a year-on-year growth of +15.7%, up from $950.6 million in 2019.
- In 2020, $822.4 million in revenues—or three-quarters of the total market—will come from media rights and sponsorship. This will increase to $1.2 billion by 2023, making up 76% of total esports revenues.
- Globally, the total esports audience will grow to 495.0 million people in 2020, a yearon-year growth of +11.7%. Esports Enthusiasts will make up 222.9 million of this number, growing +10.8% year on year.
- China is the largest market by revenues, with total revenues of $385.1 million in 2020. This is up +18.0% from 2019’s total of $326.2 million. It is followed by North America, with total revenues of $252.8 million, and Western Europe, with total revenues of $201.2 million.
- The global average revenue per Esports Enthusiast will be $4.94 this year, up +2.8% from $4.80 in 2019.
- In 2019, there were 885 major events. Together, they generated $56.3 million in ticket revenues, up from $54.7 million in 2018.
- Total prize money in 2019 reached $167.4 million, a slight increase from 2018’s $150.8 million.
- The League of Legends World Championship was 2019’s biggest tournament by live viewership hours on Twitch and YouTube, with 105.5 million hours. The Overwatch League was the most-watched league by live viewership hours on Twitch and YouTube, generating 104.1 million hours.
Newzoo 2020 Global Esports: Revenues of $1.1B
Newzoo 2020 Global Esports Market Report concluded that in the coming year, the global esports economy will generate revenues of $1.1 billion, a year-on-year growth of +15.7%. Most of these revenues (74.8%) will come from sponsorships and media rights, which will total $822.4 million, a +17.2% increase from last year.
Consumer spending on tickets and merchandise will total $121.7 million, while another $116.3 million will come from game publishers’ investments into the esports space, via supporting tournaments through partnerships or as white-label projects with professional tournament organizers.
The global esports audience will reach 495.0 million this year, made up of 222.9 million Esports Enthusiasts and a further 272.2 million Occasional Viewers. In 2020, the average revenue per Esports Enthusiast will be $4.94, up +2.8% from 2019.
As the esports market matures, new monetization methods will be implemented and improved upon. Likewise, the number of local events, leagues, and media rights deals will increase; therefore, we anticipate the average revenue per fan to grow to $5.27 by 2023. Mobile has unlocked esports for emerging markets—a trend that we have seen reflected in our data.
Newzoo 2020 Global Esports: Mention to Garena Free Fire
Aside from growing interest in traditional esports titles in some markets, including Vietnam, games like PUBG Mobile and Garena Free Fire have exploded in popularity. As such, emerging esports markets will show the highest CAGR (2018-2023), with regions such as Southeast Asia (+24.0% CAGR), Japan (+20.4%), and Latin America (+17.9%) accelerating to close the gaps between themselves and older, more developed esports markets.
Brand-building will prove crucial in the coming years, with the strongest brands attracting the most fans and, in turn, gathering the most power in the business.
New monetization methods, content formats, and competitors, as well as changing content packages and broadcasting rights, are also due to shake up the esports business.
China will remain the largest esports market in 2020, with revenues of $385.1 million. These revenues will grow with a CAGR (2018-2023) of +17.0% to reach $540.0 million by 2023.
Most of these revenues will come from sponsorships, which will grow from $187.1 million in 2019 to $222.4 million in 2020. Digital goods will be the fastest-growing revenue stream toward 2023, growing from $7.1 million in 2020 to $17.2 million by 2023.
North America will be the second-largest region in terms of revenues with $252.5 million, followed by Western Europe as the third-most revenue-generating region with $201.2 million in 2020. China will be host to the largest esports audience with 162.6 million in 2020, followed by North America with an audience of 57.2 million.
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