The latest NewZoo Global eSports Market Report, reveals that global eSports revenues will reach 1 billion dollars in 2020. The study expects the sector to generate $1.1 billion this year (not including advertising-platform revenues), up 15.7% from $950.6 million in 2019. In addition, NewZoo forecasts that the total sports audience will expand to 495.0 million in 2020, up 11.7 percent.
Gaming and eSports analytics firm NewZoo offers insight on the growth in eSports for the past six years and also states that $822 million in revenue from media rights and sponsorships will be generated.
This will be the first time that eSports revenue will cross over $1 billion. The figure has been passed previously but platform revenue generated were included. The industry has benefited from some major sponsorships already this year with Nike signing a four-year deal with China’s League of Legends competition, the LPL, and Excel eSports entering an agreement with British Telecommunication (BT).
In addition, the report indicated that by 2023 media rights and sponsorship revenue will increase to $1.2 billion, equalling 76% of eSports’ total revenue. China now accounts for the largest share of the revenues with $385.1 million (35.0% of the global total), followed by North America with $252.5 million and Western Europe with $201.2 million in 2020.
In terms of viewership, 2020 is expected to see a massive growth with the scene anticipated to reach a global audience of 495m people. Newzoo also mentioned that 222.9m of that audience would be classed as ‘eSport enthusiasts’ showing that along with securing a solid fanbase, casual eSports viewers are starting to become more common.
The League of Legends Worlds Championship marked 2019’s biggest tournament with over 105m live hours being watched on streaming platforms Twitch and YouTube.
However, the Overwatch League was eSports‘ most viewed league, generating 104 million live hours. Newzoo’s 2020 Global eSports Market Report goes in depth on how the sport is consumed, the trends that are apparent and how companies can maximize engagement and opportunities.