Total revenue for the global esports market is projected to grow to $1.1 billion in 2019, according to Newzoo’s annual global esports market report. If the market performs as Newzoo expects, 2019 will be the first time the esports industry reaches $1 billion in earnings in a single year.
Newzoo, a market intelligence firm for the esports industry, has released annual reports on esports since 2015. In 2018, the global industry brought in $865.1 million in revenue. The company predicts esports will reach $1.8 billion in revenue by 2022 based off its current trajectory. Newzoo claims that 82 percent of total esports revenue in 2019, or $897.2 million, will come from sponsorships, media rights, and advertising. The remaining revenue will be generated from ticket and merchandise sales, and game publisher fees.
“Plenty of leagues and tournaments now have huge audiences, so companies are positioning themselves to directly monetize these Esports Enthusiasts,” said Newzoo CEO Peter Warman in a press release. “While this began happening last year, the market is constantly expanding on its early learnings. The result: 2019 will be the first billion-dollar year for esports, a market that will continue to attract brands across all industries.”
According to the report, 453.8 million people will consume at least one esports event in 2019, marking a year-on-year growth of 15 percent. The audience will consist of 201.2 million “Esports Enthusiasts,” a term Newzoo uses to refer to a person who watches professional esports content more than once a month. Newzoo expects the total audience to reach 645 million people by 2022.
SportTechie Takeaway
Newzoo’s esports revenue figures do not take into account anything generated from betting or fantasy gaming, so the actual revenue numbers for the industry could be greater than it projects. The fact that sponsorships top the list for the most profitable revenue stream in esports is no surprise considering iconic brands have been flocking to sponsor esports teams and leagues. In 2018, MasterCard became a League of Legends global sponsor, while Puma sponsored Cloud9 esports and McDonald’s Germany ended its soccer sponsorship to instead focus on local esports sponsorship.