How Much Revenue Does Esports Generate?

The esports industry is growing rapidly and is on track to generate $1.1 billion in revenue in 2019. Here’s a look at how much revenue different esports generate.

Introduction

Esports, or electronic sports, are a form of competitive video gaming that has gained immense popularity in recent years. Esports tournaments are held all over the world and draw in large crowds of spectators, both in person and online. These tournaments often come with hefty prize pools, and many professional gamers earn a living by playing esports. But just how much revenue does the esports industry generate?

According to a report from SuperData Research, the global esports economy was worth an estimated $696 million in 2017. This figure is expected to grow to $1.5 billion by 2020. The majority of esports revenue comes from sponsorships and advertising, which make up 77% of the total. Prize money makes up 16% of revenue, while game publisher fees account for just 7%.

The majority of esports revenue comes from Asia-Pacific countries, which generated $335 million in 2017. North America was second, with $275 million in revenue. Europe came in third with $172 million.

The most popular esport in the world is League of Legends, which is published by Riot Games. According to SuperData, League of Legends generated $1.4 billion in revenue in 2017. The game is followed by Counter-Strike: Global Offensive ($985 million), Dota 2 ($928 million), and Overwatch ($429 million).

The global esports economy

Esports, also known as electronic sports, is a form of competition using video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players. The most common video games genres in esports are battle arena, first-person shooter, and real-time strategy. Revenue in the global esports economy will amount to $696 million in 2018. This figure includes revenue from event tickets, sponsorship, and online advertising.

Global esports revenue

According to a report from researcher Newzoo, the global esports economy will generate $696 million in revenue in 2017. This is up from $463 million in 2016. The report predicts that the esports economy will grow to $1.5 billion by 2020.

The majority of esports revenue comes from advertising, followed by sponsorship and then merchandise and tickets. Advertising revenue is expected to grow from $174 million in 2016 to $266 million in 2020. Sponsorship revenue is expected to grow from $266 million in 2016 to $558 million in 2020. Merchandise and ticket revenue is expected to grow from $23 million in 2016 to $39 million by 2020.

The most valuable esports markets

The global esports economy is growing rapidly, with revenues expected to reach $1.1 billion in 2019. The most valuable esports markets are China, North America, and South Korea, which together account for nearly 80% of the global market.

China is by far the largest esports market, with revenues of $460 million in 2019. The Chinese esports market is largely driven by online gaming and live streaming, with the majority of revenues coming from sponsorships and advertising.

North America is the second largest esports market, with revenues of $230 million in 2019. The North American market is primarily driven by live event ticket sales and merchandise, as well as sponsorships and advertising.

South Korea is the third largest esports market, with revenues of $170 million in 2019. The South Korean market is primarily driven by online gaming and live streaming, as well as sponsorship from major corporations such as Samsung and LG.

The revenue generated by different esports games

The revenue generated by mobile esports games

just two years ago, the global esports market was worth $696 million. By 2021, it’s expected to balloon to $1.5 billion. A big reason for this growth is the popularity of mobile esports games.

The top five mobile esports games — Arena of Valor, Clash Royale, PUBG Mobile, Honor of Kings, and Free Fire — generated a combined $1.4 billion in revenue in 2018. That’s an increase of 42 percent from the previous year. And these games are only going to become more popular in the coming years.

Mobile esports titles are particularly popular in Asia. In China, for example, Honor of Kings has more than 200 million monthly active players. And it’s not just hard-core gamers who are playing these games. A recent report found that 41 percent of mobile gamers in China play casual games like Candy Crush and Clash Royale.

The rapid growth of mobile esports is attracting a lot of attention from traditional sports leagues and media companies. For example, the NBA partnered with Take-Two Interactive to create the NBA 2K League, a professional esports league for the NBA 2K game. And last year, ESPN broadcastinged the finals of the Arena of Valor World Cup on its ESPN2 channel.

As mobile gaming continues to surge in popularity around the world, we can expect to see even more investment in mobile esports in the years to come.

The revenue generated by PC esports games

Due to the increased popularity of esports, many organizations have started to invest in the industry. In 2020, it was estimated that the revenue generated by PC esports games was 671 million U.S. dollars. The most popular PC esports game in terms of prize money was Dota 2, with over 41 million U.S. dollars in prize money being awarded in 2020. League of Legends was the second most popular game, with around 36 million U.S. dollars in prize money being awarded that year.

The revenue generated by different esports tournaments

Different esports tournaments generate different amounts of revenue. The International, for example, generated $34 million in 2016. The League of Legends World Championship generated $5 million in revenue in 2012 and $11 million in 2013. The Call of Duty World League Championship generated $3 million in 2015.

The revenue generated by major esports tournaments

Major esports tournaments generate a lot of revenue, with the biggest events bringing in tens of millions of dollars. The International, for example, is the biggest tournament in the world for the MOBA game Dota 2, and it had a prize pool of over $24 million in 2016. Other big events include the League of Legends World Championship, which had a prize pool of over $5 million in 2016, and the Halo World Championship, which had a prize pool of over $2 million in 2016.

The revenue generated by smaller esports tournaments

While the biggest tournaments, like The International and League of Legends World Championship, bring in the most revenue, that doesn’t mean that smaller tournaments don’t generate significant revenue themselves. In fact, many smaller tournaments are able to generate millions of dollars in revenue.

One such tournament is the TwitchCon tournament for the game Fortnite. This tournament had a prize pool of $2 million and generated more than $10 million in total revenue. This just goes to show that even smaller esports tournaments can be extremely lucrative.

The revenue generated by different esports companies

Revenue in the esports industry has seen a steady increase over the past few years. In 2019, the global esports economy was worth $865 million, and it is expected to grow to $1.1 billion by 2020. This growth is being driven by a number of factors, including the increasing popularity of esports, the growth of the gaming industry, and the rise of digital streaming platforms.

The revenue generated by esports teams

Most of the revenue for esports teams come from sponsorship, with some additional revenue coming from merchandise sales, prize money, and online viewing platforms like Twitch. In 2019, the average esports team generated $5 million in revenue, with the top 1% of teams generating $25 million or more. The majority of esport teams are based in North America and Europe, with China and South Korea also having a significant presence in the industry.

As esports continue to grow in popularity, so too will the amount of revenue generated by teams and players. With more people watching online and attending live events, there will be more opportunities for sponsorship and advertising deals. Additionally, as prize pools for tournaments increase, so too will the earnings of professional players. The future of esports looks bright, with analysts predicting that the industry will be worth over $1 billion by 2025.

The revenue generated by esports organizations

The revenue generated by esports organizations varies widely. Some organizations generate millions of dollars in revenue each year, while others generate only a few thousand. The majority of esports organizations generate less than $1 million in revenue annually.

The largest esports organization in the world is Riot Games, which is the developer of the popular MOBA game League of Legends. Riot Games generated $1.6 billion in revenue in 2016, largely through the sale of in-game cosmetic items. Other large esports organizations include Blizzard Entertainment, which generated $1.2 billion in revenues in 2016, and Valve Corporation, which generated $862 million in revenues in 2016.

The revenue generated by esports publishers

There are a number of different revenue streams for esports publishers, with the most common being licensing fees, sponsorships, and advertising.

Licensing fees are paid by esports leagues or tournaments to the publisher in order to use their game as the basis for competition. The fee is typically a percentage of the overall prize pool for the event. For example, Blizzard Entertainment charges a 10% licensing fee for events that use Overwatch as the basis for competition.

Sponsorships are normally secured by teams or players who then share a portion of the fee with their publisher. The largest sponsorship deals in esports have been secured by teams playing games published by Riot Games and Blizzard Entertainment. These companies have also been able to command high prices for advertising on their livestreams due to the large audiences they attract.

Advertising is typically sold by publishers on behalf of team organizations or tournament organizers and can take a variety of forms, including banner ads, product placement, and mid-stream commercials.

Conclusion

While the total revenue of the esports industry is difficult to accurately estimate, it is clear that the industry is growing rapidly and generating significant amounts of revenue. Estimates for the total revenue of the esports industry in 2019 range from $ 800 million to $ 1.1 billion, and it is expected to grow even further in the coming years.

There are a variety of factors driving this growth, including an increase in investment from traditional sports organizations, sponsorships from non-endemic brands, and the continued expansion of the esports audience. As the industry continues to grow, it is likely that we will see even more organizations and brands jumped on board and begin reaping the benefits of this rapidly growing industry.