In 2016, the eSports market is expected to grow to $463 million

The eSports market continues to grow, massive though it already is. A recent report from research firm Newzoo shows how big the market is getting, especially this year.

Perhaps the biggest example of that locally is the R1 million Telkom is offering as the cash price for this year’s DGL Masters.

The report shows that the market’s value is expected to grow by 43% this year, from $325 million in 2015 to $463 million. By 2019, the the market is expected to break $1 billion.

North America is predicted to be the top revenue-generating market with an estimated $175 million to be generated.

In regards to audience share, Asia is the leader with 44% of global eSports enthusiasts.

The total audience is expected to grow to around 131 million worldwide, with additional and occasional viewers that should number 125 million to watch major events.

Newzoo’s CEO Peter Warman had this to say:

2016 will be pivotal for esports. The initial buzz will settle down and the way forward on several key factors, such as regulations, content rights and involvement of traditional media, will become more clear.

However, he also expressed caution saying:

The collapse of MLG was a reminder that this market still has a long road to maturity and we need to be realistic about the opportunities it provides.

The 43 % growth for 2016 is less than that of 2015, where the market value increased by more than 67%.

The annual average revenue from eSports enthusiasts is expected to grow from $2.83 in 2015 to $3.53 this year.

Many companies are beginning to understand that the eSports audience is very valuable and they want to take advantage of such a big audience.

They are generally consumers with full-time jobs and tend to earn a higher than average salary, who are willing to spend money on all forms of hardware, digital media and even mobile content.

Currently, companies like Valve, Riot and Blizzard dominate the scene.

However, with Activision’s recent acquisition of MLG, there is definite interest in eSports and now even ESPN is taking a heavy interest in eSports.

Newzoo further said:

An increasing amount of traditional media companies have become aware of the value of the eSports sphere and have launched their first eSports initiatives. With these parties getting involved, there will be an increased focus on content and media rights. All major publishers have increased their investment into the space, realizing that convergence of video, live events and the game itself are providing consumers the cross-screen entertainment they desire from their favorite franchises.

So, with eSports growing at such a rapid pace what are your thoughts on the direction it is heading?

Share with us in the comments and forum section below.