The e-sports market expected to reach $1 billion
According to SuperData Research, the total global e-sports market was valued at $748 million at the end of 2015. Its YoY (year-over-year) revenue growth is driven by an increase in advertising as well as more brands entering the segment.
The global e-sports market is expected to reach $1 billion in 2017.
Betting and fantasy sites are attracting investments
Platforms such as e-sports betting and fantasy sites have attracted investments of more than $150 million. Revenues earned in 2015 are expected to be $56 million. According to SuperData, “Fans remain more comfortable wagering virtual gaming content over cash, causing real-money sites to gain traction slower than anticipated.”
Approximately one-third of the e-sports fans in the United States (SPY) participate in online amateur tournaments. As the number of players increases, the number of sites has also increased, leading to saturation in the e-sports market. The next big thing in this market is expected to be the mobile e-sports space, where audiences have increased by 19% YoY in the US.
Because there is immense potential in this segment, Activision (ATVI) and Electronic Arts (EA) should look to increase market penetration. Asia and Europe (EFA) remains a huge market for these companies. Investors and analysts will be looking closely at this sector as it inches toward a billion-dollar valuation.