E-sports is a booming global industry where skilled video gamers compete. In the same way that traditional sports organize baseball, basketball, and soccer, e-sports include competitions over multiple video games. In fact, more than 380 million people watch esports worldwide both online and in person. Today we will introduce about E-sports market as well as Trends in e-sports in the future.
What is the e-sports market?
E-sports is a term that refers to online games as spectator sports. The experience is similar to watching a professional sporting event, except that instead of watching an actual event, spectators watch gamers compete against each other in a virtual environment. In 2018, the global E-Sports market reached a massive 380 million viewers as estimated by a Newzoo report. The report also predicts the number could reach 557 million, of which 250 million will be dedicated enthusiasts and the remaining 307 million will be occasional viewers. The market is expected to be worth a billion dollars and more as the number of players and viewers grows.
Types of e-sports
Any game in which players compete online in an organized competition qualifies as an e-sport. As long as there is a measure of performance, almost any game can be used. E-sports athletes compete in activities as individuals or as a team. Some types of e-sports include:
Fighting games are one of the classic e-sports genres, with games like Mortal Kombat and Street Fighter II among the first major titles to receive national attention. In a fighting game, two players compete against each other using a variety of kicks, punches, and special attacks.
Sports games based on professional sports like soccer, basketball, baseball and soccer. Players compete against each other in their favorite sports in the actual or arcade version of the game. The Madden soccer series remains one of the top games for esports competitors today.
In racing games, eSports competitors take the wheel and face off against one or more other drivers simultaneously. Racing games can be realistic simulation games, arcade-style games using unrealistic vehicles, or a combination of both. Some popular racing titles include Mario Kart, Need for Speed, and iRacing.
Multiplayer Online Battle Arena
Massively multiplayer online battle arena (MOBA) game that pits two teams against each other in a predetermined area or battlefield. Each character has a set of abilities that they can improve as they progress through battle and gather power-ups. League of Legends, Dota 2, and Battlerite are a few well-known MOBA game examples.
Digital card game
A digital card game that uses a turn-based format in which players attack, cast spells and perform other actions using cards. Hearthstone, originally released in 2014, remains one of the most popular digital card games in e-sports today.
The first-person camera used by the controlled character is what distinguishes first-person shooter (FPS) gameplay. Characters frequently employ guns or other weapons. Halo, Call of Duty, and Team Fortress are a few well-known first-person shooter games.
Competitive environment of e-sports
The video game industry is rapidly expanding over the globe. From an ordinary hobby just a few decades ago, it has now evolved into another genre of eSports, a lucrative business worth more than a billion dollars. Major tournaments often have millions of fans watching. Similar to other sports, eSports draw celebrities and investments from global businesses, filling stadiums to capacity and drawing millions of spectators to live streams.
Many young people consider e-sports a professional career because of the popularity of online gaming tournaments among individuals in this demographic. The growing profitability of e-sports gamers makes it an attractive business and career opportunity for many in this age group. Universities around the world have begun offering e-sports clubs and programs for students looking to develop the professional skills needed to succeed in the industry.
The business model of e-sports
While eSports sounds like an interesting and unique career path, many people question how eSports companies generate their revenue.
As eSports grows, the media rights businesses create will be an important part of their business model. In fact, broadcast media rights are one of the biggest sources of revenue for major eSports tournaments, with Twitch paying $90 million for Overwatch League seasons one and two. In addition, media rights will be an important source of revenue for eSports teams and tournaments and will take a completely different form than traditional sports sponsorship.
If you have ever watched an eSports match, you may have noticed that the players will wear logos of major brands. While this is the traditional model, non-endemic brands are also increasingly getting involved. To gain a foothold in the e-sports space, e-sports teams should consider partnering with established brands.
Ticket sales are the main source of revenue for eSports. Compared to traditional sports, ticketing is a good way to increase the revenue generated by the eSports industry. These sales help the team pay expenses and maintain profitability. Ticketing is also a popular way to sponsor tournaments and other eSports events.
While publisher fees typically generate lower revenue than the methods mentioned above, they are still an important way for eSports companies to earn revenue. Publisher fees are payments from tournament organizers to e-sports businesses and game publishers for permission to use the publisher’s intellectual property.
Trends in e-sports
As already stated, the sector is trending and will continue to grow at an exponential rate in the coming years, so let’s cover some of the trends we can expect in this world.
- Integrated 5G network
This is one of the trends that is coming to both eSports and the gaming world in general. The introduction of 5G has opened up new opportunities for various industries. The network has already been rolled out in several cities and is expected to be expanded to the rest this year. 5G allows increased connection speed for users, with raw speeds reaching 10 Gbps, nearly 10 times faster than 4G.
- Games for mobile devices
In recent years, the development trend is the emergence of e-sports games on mobile devices. They are so popular that many companies have offered game licenses along with their launch promotions. Games like Call of Duty: Mobile, PUBG Mobile, and Mobile Legends dominate the mobile game industry, and game fans are sure to witness an eSports version of those mobile games.
- Extended virtual reality
For several years now, developers have been looking for ways to “pull” users off the screen. The goal is to link their game to the real mode to give them an immersive 360° experience. Players will be able to hear sounds as if they were real-life sounds, see the hand and arm movements, feel a part of the game more realistically, and have the opportunity to interact with other players.
- Improved graphics
Improved graphics is another trend in eSports and gaming. Obviously, we will see more and more realistic characters with more human-like movements. This graphical improvement will provide a better user experience and encourage more people to join the game world.
The eSports market is definitely going to have a big change this year. Developers, tech companies, gamers, and audiences are preparing for what’s to come. These already good numbers are expected to break new records thanks to their commitment to constant and relentless innovation.