The SuperData 2017 Esports Market Brief gives an overview of the esports market, now it is starting to penetrate the mainstream. Once only large in Asian markets like Korea, esports have expanded worldwide and are now top of mind for every games publisher, platform, and brand.

At $1.5B for 2017, global esports revenue is projected to grow 26% by 2020 as it attracts an even more mainstream audience. This increase will be fueled by a viewership projected to grow 12% each year and a swelling number of third-party investments. The opportunities for revenue streams are also increasing as the market matures. In addition to receiving indirect revenue from investments, Overwatch and League of Legends are projected to grow their direct revenue by selling brand sponsorships, advertisements, tickets, and team merchandise.

The brands are here
Advertisers and investors are finally taking notice of esports’ access to key audiences, with their contributions accounting for 85% of the worldwide market/revenue.

Video game companies like Activision Blizzard, Riot Games and Valve continue to support their flagship esports titles with player franchising agreements and larger prize pools. But a number of high-profile sports organizations and brands invested in the market for the first time, highlighting a growing confidence in its ability to break into the mainstream. Advertisers and brands like the The Kraft Group (owner of New England Patriots) and Mercedes-Benz are among the most notable, with several other sports teams and brands making financial commitments.

What’s next? 
Twitch and YouTube continue their battle for gaming video and esports dominance, Overwatch League opens the floodgates for a new kind of esports governance, and PlayerUnknown’s Battlegrounds (PUBG) rides a wave of esports performance with no formal strategy.

SuperData 2017 esports market brief headlines 

  • Esports grows to a $1.5B industry this year and shows no signs of slowing down
  • Investors showed confidence in esports this year by contributing $750M to the market
  • League of Legends attracts more players while Dota 2 draws higher prize pools
  • Overwatch League spreads across US cities, laying the groundwork for regional rivalries
  • PlayerUnknown’s Battlegrounds has attracted a viewership of 202M in record time
  • Twitch and YouTube continue to fight for the same esports audience

To download the SuperData 2017 Esports Market Brief, click here.