What is eSports?
Esports, or commonly known as electronic sports, is a type of sport played in an electronic system. The game will be played or controlled by a human-computer interface, which lets the user experience a whole new level of gaming. The different types of gaming aspects include single-player and multiplayer games. The eSports will be played by gaming professionals, and the competition will be organized by an organization or sometimes by a company. The competitive advantages of the eSports are such as selection of teams, players, and organizations because they are not bound by any location or with the lack of interaction between them.
The three main components of the eSports market are developers, publishers, and organizers. Developers are the main reason to build an eSports tournament software with their idea and skills. Apart from the developers, publishers and organizers will be undertaking the sole responsibility of the overall development of the marketing strategies and the distribution of the product.
What drives the eSports market
As the operated via an electronic system, it lets you stream the gaming content on various platforms. The platforms may include any major social media such as Facebook, Youtube, Twitter, etc. Whereas traditional sports depend upon the mediums such as paper print, radio, and television. The primary reasons for the growth of the eSports market are the ability to cover areas where the traditional sports will not be able to proceed, advancements in eSports tournament software development, and the increase in awareness among the users initiated by the worldwide publishers, investors, broadcasters and bloggers.
eSports comprises of multiple games and communities. Moreover, the performance of an eSports app or software can be credited to its eSports Tournament Software Development company for its uncompromising efforts and structural development, making sure no feature is missed in the app. Fraudulent activities have been one of the major setbacks in the eSports industry since its inception.
The segmentation of the eSports market
The eSports market can be segmented based on revenue source, platform, product, and game. Further on, the revenue can be further divided into two categories, such as sponsorship, prize pool, amateur & micro tournament, merchandising, ticket sales, and advertising. Advertisement is the major dominating segment in the category of revenue, followed by sponsorship. This is due to the fact that a number of new companies have started to pop up all over the world and have started to advertise their company in the eSports industry.
eSports can be divided into two major entities, such as PC and Consoles, in the platform category. The major products used in the eSports market to play games are mice, controller, headset, keyboard, and other accessories. eSports can be played in two significant ways, such as a single-player game and as a multiplayer game teaming up with people around the world. There are different genres of eSports, namely Multiplayer online battle arena (MOBA), real-time strategy, first-person shooter, fighting, and sports. Out of this first-person shooter came out as the most dominant category among the eSports enthusiasts.
Overlook of the market on the basis of regions
The critical areas for the eSports can be divided into seven different sections. They are North America, Eastern Europe, Western Europe, Latin America, Asia Pacific, excluding Japan, Japan, and Middle East & Africa. Out of these regions, the US emerged as the winner in terms of the country’s contribution to the eSports market revenue as it has the maximum number of games and with better Tournament software development services compared to other regions. Europe fell behind the US as the second-largest regional contributor in the global market. If recent reports are to be believed, the Asia Pacific market region will overtake the US as the number of gamers, and the audience keeps increasing with major contributors from China and South Korea. The emergence of new technologies is also contributing to the growth of the market in that particular region.
New opportunity from Educational platforms
eSports gained a vast amount of attention when it was introduced into the Asian Games in 2018. Educational organizations such as schools, colleges, and universities noticed the benefits of eSports. eSports modules are now being added in the courses of several educational organizations in Canada, the U.S., Sweden, and several others to enhance the cognitive abilities and to deliver other benefits. The eSports tournament software providers have collaborated with the Staffordshire University to introduce a full-time BA (Hons) degree program in eSports. They also continue to create employment opportunities that demand people with specific skills and contribute to newer possibilities in the eSports market in the coming decade.
What numbers say
The recent market reports the eSports market is expected to reach USD 2,174.8 million by 2023 and with a compound annual rate of 18.61% between 2018 and 2023. The major streams of revenue for the eSports industry include Media rights (subscription and online advertisement), tickets and merchandise, sponsorship and direct advertisement, and publisher fees. The increasing popularity of video games among the millennial generation and the technological advancements contribute to the rising revenue of the eSports market.
Sponsorship and advertisement contribute to a significant proportion of the overall revenue. With sponsorship taking the lead, advertisements offer several opportunities and benefits as they have the potential to reach the target audience directly.
Gamers attract a massive audience with a high sensibility and loyalty for the game. Entrepreneurs can make use of this opportunity to lure loyal customers to their eSports platform for the long term and also boost their experience by handing out various gifts and vouchers.