Esports & gaming sector saw an exponential surge in 2020: Here's why
Electronics sports generally referred to as E-sports, are competitive tournaments, where players compete against each other, imitating the experience of viewing a professional sports event, where audiences watch video gamers compete against each other.
How is the esports industry so huge and where is all the money coming from? Like other markets, esports has its own sources of revenue which are pretty similar to the sports industry. Esports revenue is mainly generated through sponsorships and advertisements, tickets and merchandise, and media rights.
The Esports and Gaming market sector's ecosystem that generally includes game publishers, players, teams, league operators, distributors, and audiences, has globally seen a surge in 2020, while most other sectors are in a complete downturn.
It's all due to the pandemic
Due to the onset of the pandemic, the audiences who participate in online gaming has been increasing at a fast pace. There is no doubt in the fact that COVID-19 has spread like wildfire which has resulted in worldwide lockdowns, due to which people are playing for longer hours too keep themselves engaged while staying at home.
The pandemic has caused a financial crisis throughout the world in all sectors of the economy. However, gaming and streaming have not been adversely affected in these times.
Global Video Game market is bigger than Movie and Music industries combined
The Global Video Game market is forecast to be worth $159 billion in 2020 which is around four times box office revenues ($43 billion in 2019) and almost three times music industry revenues ($57 billion in 2019).
The biggest market by revenue is Asia-Pacific with almost 50% of the games market by value.
Lokesh Suji VP of Asian Esports Federation, talks about esports and gaming industry
Business owner by day and esports fanatic by night, Lokesh is literally living his dream! He is the Director at Esports Federation of India — the Indian esports federation & Vice President at Asian Esports Federation.
With over 20 years of experience, he is an esports evangelist, hustler and a telecom veteran.
Lokesh Suji has shared with us his valuable thoughts on the esports and gaming industry and it's future.
Talking about the Esports & Gaming industry in 2020 Lokesh Suji said, "We saw a boom in digital entertainment in India with the COVID-19 uncertainties and the lockdown in place in most of 2020, both esports & video gaming playing a key role. With the pandemic continuing and active sports hit mostly, the penetration of esports has only depended and efforts are being made to make it reach to more and more individuals across the country by various stakeholders in the esports community. However, despite all the challenges that the world has faced, the cumulative growth of the esports industry has been unprecedented and phenomenal."
Talking about his expectations about the esports and gaming industry in 2021, Lokesh Suji said "Though the video games industry is recognized as an industry in India, we hope and look forward to esports being recognition in the same way soon. While esports is now going to be a medal event at the Asian Games 2022 as well as few other Asian Championship events, it is a must that esports needs to be recognized by the Ministry of Sports as a “Sport”. We mustn't club it with Online Gaming, Fantasy, Teen Patti, Poker, Rummy and brand it as a source of betting or gambling. Esports is like any other sporting discipline sports where India has a chance to win medals and bring glory to the country. We need to recognise and regulate it as any other sport.
Am confident that these developments will also propel more brands to invest and associate with the Esports Eco-system and it is an opportune time for Indian Esports Industry to take a quantum leap economically as well as a new avenue in the sports genre."