Esports Economy Poised for Explosive Growth: Key Insights from Newzoo
Market Projections: A $1.5 Billion Industry by 2020
The global esports economy is set to grow by 41.3% in 2017, reaching $696 million, according to leading market researcher Newzoo. The report forecasts even more dramatic expansion, with the market expected to nearly triple to $1.5 billion by 2020.
Image Credit: Newzoo
Audience Growth: 385 Million Viewers and Counting
Newzoo’s analysis reveals significant audience expansion:
- 2017 Viewership: 385 million globally
- Enthusiasts: 191 million
- Casual Viewers: 194 million
- 2020 Projection: 50% growth to 589 million total viewers
- Enthusiasts: 286 million
- Casual Viewers: 303 million
Revenue Breakdown: Where the Money Flows
Brand Investment Dominates
- 2017 Brand Spending: $516 million
- Sponsorships: $266 million
- Advertising: $155 million
- Media Rights: $95 million
- 2020 Projection: More than double current levels
Other Revenue Streams
- Consumer spending (tickets/merchandise): $64 million
- Game publisher investments: $98 million
Regional Leaders: North America Sets the Pace
- 2017 Revenue: $257 million (37% of global total)
- 2020 Projection: $607 million
- Revenue Per Fan: $10.36 (2x higher than other regions)
The Evolution of Esports Monetization
“Esports represents a transformative convergence of industries,” explains Peter Warman, Newzoo CEO. “It offers brands and media companies unprecedented access to digital natives through their preferred content format.”
Key monetization trends:
- Revenue Per Fan: Currently \(3.64 (vs. \)15 for NFL)
- 2020 Projection: $5.20 per fan
- Betting Market: Potentially larger than core esports economy
Image Credit: Newzoo
The Untapped Potential of Esports Betting
While not included in Newzoo’s official figures:
- Esports betting already surpasses golf and tennis in some markets
- Global betting on NFL games (\(50B+) dwarfs league revenue (\)13B)
- Major betting platforms rapidly adopting esports offerings
Publisher Strategies: Building Spectator Sports
Game developers are actively:
- Partnering with white-label organizers
- Creating league structures
- Expanding media rights opportunities
Image Credit: Newzoo
Access the Full Report
For more detailed analysis, download Newzoo’s free report highlights.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: DIPSY WHITE LEATHER
Image: Premium product showcase
High-quality dipsy white leather offering outstanding features and dependable results for various applications.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
