Newzoo: The Global Esports Audience Will Be Just Shy of 500 Million This Year

We couldn’t be happier to announce that today marks the launch of our 2020 Global Esports Market Report. This sixth edition dives deep into the global and regional esports economy, providing a realistic estimate of the market’s future potential regarding revenue streams, audience numbers, key trends, and franchises. We also discuss mobile esports, the state of collegiate, the latest developments from Japan, and more.

This edition the report features a significant refresh to our revenue model, influencing the different revenue streams and stakeholders involved. We regularly evaluate our model to ensure it is in line with the latest dynamics in this ever-evolving market. Learn about the changes here.

Esports Will Produce Revenues of $1 Billion Without Broadcasting Platforms Revenues

The year 2020 will be a landmark for the esports market, which will, for the first time, exceed the billion-dollar revenue mark without advertising platform revenues. Total esports revenues will reach $1.1 billion in 2020, an increase of almost $150 million compared to 2019. With the changes to the model this year, China now accounts for the largest share of the revenues, generating 35.0% of the global total.

The highest-grossing esports revenue stream worldwide is sponsorship, which will generate $636.9 million in 2020, up from $543.5 million in 2019. The world’s fastest-growing esports revenue stream is one of our new streams, digital, with a CAGR (2018–2023) of +72.4%, compared to sponsorship’s +16.6%. We’ve also introduced streaming as a revenue stream, which will generate $18.2 million in 2020 and grow to $31.6 million in 2023.

“The esports market has flourished more than ever before over the past few years, and we’ve seen individual countries, regions, and markets evolve in different ways,” said Peter Warman, Co-Founder and CEO of Newzoo. “Each market now has its own form and flavor, a combination of different game preferences, platforms, and market conditions that makes each one unique. Appreciating the differences between these markets is vital for anyone looking to enter — or better understand — the space.”

With the full report subscription, you can discover a breakdown of revenues regionally and per market.

Emerging Markets Continue to Help Push Esports Audience Growth

The esports audience will grow to 495.0 million people globally in 2020. Esports Enthusiasts will account for 222.9 million of this number, up 25 million year on year, and will increase with a CAGR (2018–2023) of +11.3% to 295.4 million in 2023. Meanwhile, the number of global Occasional Viewers will hit 272.2 million in 2020, up from 2019’s 245.2 million. This number will grow with a CAGR (2018–2023) of +9.6% to 351.1 million in 2023.

Audience and awareness numbers are increasing in emerging markets in Latin America, the Middle East and Africa, and Southeast Asia. This mostly due to urbanization and advances in IT infrastructure, coupled with explosive mobile growth. Download the free version of the report for a sneak peek at our mobile esports special focus topic.

Last year, there were 885 major esports events that the global esports audience could attend. Together, they generated $56.3 million in ticket revenues, up from $54.7 million in 2018. Our Game Streaming Tracker shows that the League of Legends World Championship was 2019’s biggest tournament by live viewership hours on Twitch and YouTube, with 105.5 million hours.

Newzoo’s Global Esports Market Report

You can find deeper insights for every region along with granular revenue and audience estimates in the full report. It also includes developments per region, demographic insights, top events and franchises, and the key trends shaping and disrupting the esports business. This annual report forms part of our Global Esports Market Report service which includes quarterly trend and forecast updates, access to the granular market data in our online dashboard, and expert analyst support.

These insights help companies to explore opportunities in esports, create the perfect strategy, and stay ahead of the latest trends. This is exactly why so many brands are subscribed to the report, including most global games, media, and hardware companies — as well as esports teams, organizers, and sponsors.

Learn more about the scope and methodology of the report and subscribe to the service here. You can also reach out to us at questions@newzoo.com.