By Demetris Constantinou, Contributor
Over the last decade, the eSports industry has experienced phenomenal growth, leading people to question the conventional definition of sports. One argument against esports is that they lack the physicality typical of sports like basketball and football. On the other hand, some argue that esports, due to their competitive nature and entertainment value, should be considered sports. This article doesn’t aim to join this debate but instead focuses on explaining why esports are here to stay.
Looking at numbers
It is estimated that the eSports market is expected to reach a valuation of $6.31 Billion by 2027, about 6 times its current valuation of $1.1 Billion [1]. It’s an insane increase in valuation over a short amount of years which sets up the industry for growing dominance and popularity. Nevertheless, we cannot put things into perspective unless we compare eSports to the conventional sports industry. ESports are estimated to have the second largest viewer base in the United States by the end of 2021. It had over 84 Million viewers and more viewers than the MLB, NBA, NHL and MLS.
The only league estimated to attract greater viewership is the NFL, by far the most popular league in the US [2]. Looking at it from a monetary standpoint, the U.S. Open, one of the most famous Tennis Tournaments around the globe, had a prize pool of $39 Million in 2020 for Men and Women’s singles [3]. The Dota 2 International Tournament 2020 had a prize pool of approximately $40 million. This means a professional tennis player winning the U.S. Open could potentially earn less than a professional esports team winning the Dota 2 tournament. [4].
Sustainability
The above comparisons give us great context into the popularity of eSports. However, they don’t quite explain why the eSports industry is sustainable. Therefore, how do we know that this is not just a flare up that’s going to go away? The eSports industry has among the youngest fanbases in all sports with about 73% of its fanbase being around the ages of 16-34 [5].
Furthermore, the vast majority of eSports engagement comes from Online TV as opposed to the conventional cable or offline TV. Both the fanbase, and the means of watching eSports, make eSports’ market growth a matter of when, rather than a matter of how. Moreover, the Coronavirus pandemic put the eSports industry at the centre of entertainment during the lockdowns of 2020. As the world transitions into online formats, eSports entertainment has left its mark into the lives of many people who will continue to embrace eSports in the post-pandemic era.
Therefore, it’s clear that eSports are here to stay. It will be interesting to watch how the industry grows and expands in popularity.
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[1] Global e-sport market size to showcase 24.4% CAGR over 2020-2027 – Global e-sports market size to showcase 24.4% CAGR over 2020-2027 (yahoo.com)
[2] With Viewership and Revenue Booming, Esports Set to Compete with Traditional Sports – Esports vs Sports | Can Esports Compete with Traditional Sports? (syracuse.edu)
[3]2020 US Open Prize Money – Prize Money | History of the US Open – Official Site of the 2021 US Open Tennis Championships – A USTA Event
[4] The Dota 2 International Tournament Prize Pool – The International 10 – Dota 2 Prize Pool Tracker (prizetrac.kr)
[5] With Viewership and Revenue Booming, Esports Set to Compete with Traditional Sports – Esports vs Sports | Can Esports Compete with Traditional Sports? (syracuse.edu)