Hi there! As an online privacy expert who analyzes internet trends, I‘ve been fascinated by the rapid growth of esports over the past several years. Once a niche hobby, competitive gaming has entered the mainstream – generating over $1 billion in revenue globally in 2021 alone.
In this guide, we‘ll explore the key statistics around viewership, market revenue sources, player earnings, events and more to understand the ever-increasing influence of esports. Let‘s dive in!
Introduction to Esports
Esports involves professional video game matches played in competitive tournaments amongst teams or individual players. Income is generated through prizes, player salaries, media rights, advertising and sponsorships – similar to traditional professional sports leagues.
While competitions trace back to the earliest days of gaming, participation and viewership trends have absolutely exploded recently thanks to live streaming technology and mobile gaming allowing real-time spectating by millions of fans across the globe.
Key Esports Stats:
- $1.38 billion in total revenue generated globally in 2021
- 474 million total viewers in 2021, nearly doubling since 2017
- Over 50% of viewers based in Asia-Pacific region
Total Global Revenue Breakdown
As mentioned earlier, Newzoo estimates reveal that esports generated $1.38 billion in total revenues globally last year. Sponsorships made up the largest share at 45% of the pie, while media rights and advertising contributed around 20% each.
Total global revenues are forecasted to grow at a 14% compound annual rate, expected to exceed $2 billion by 2025 per projections by Roundhill Investments.
Esports revenue composition. Image Source: ggscore.com
With accelerating viewership further attracting lucrative sponsorship deals and continued expansion inevitable, these estimates seem conservative.
Regional Market Share Comparisons
Delving deeper into geographic earnings breakdown, China leads the world responsible for over a third of total esports revenue. North America trails closely behind, generating 25% of the $1.38 billion global market. Korea, Western Europe and the rest of RoW make up the remainder.
Here is the revenue breakdown by region based on 2021 numbers:
- China – $360.4 million
- North America – $243.5 million
- Western Europe – $213.8 million
- Korea – $112.4 million
- Rest of World – $210 million
China‘s market dominance comes thanks to over 300 million viewers plus fast-rising local streaming platforms like DouYu TV and Huya supporting events.
While still a second tier region, expect South America, Southeast Asia and India viewership and infrastructure investment to expand rapidly from current levels and gain larger market share over this decade.
Hours Watched by Top Esports Games
Examining total hours watched on live services like Twitch reveals the most popular competitive games. League of Legends leads by a wide margin, racking up over 300 million more hours watched than DOTA 2 in second. Rounding out 2021‘s top 5 games by hours watched are:
- League of Legends – 728 million hours watched
- DOTA 2 – 402 million
- Counterstrike: GO – 338 million
- Valorant – 300 million
- Fortnite – 218 million
League has maintained the viewership crown for several years thanks to Riot Games‘ innovative approach promoting premium content like the League Championship Series (LCS) and League of Legends Champions Korea (LCK) to build steady audience growth.
Top games by hours watched. Image Source: EsportsObserver
Their formula provides a framework for sustaining success that other titles should follow.
Overall Viewership Metrics and Growth
Esports enthusiasts, defined as viewers who watch more than once a month, accounted for 251 million of the total 474 million unique viewers across live streaming and video on demand platforms in 2021 according to projections from Newzoo.
Additionally, over 200 million viewers tune in occasionally throughout the year.
For perspective on accelerating growth, total viewership has nearly doubled since 2017, when approximately 300 million viewers were recorded across both enthusiast and occasional viewer segments.
The 2022 projections stand at 286 million enthusiasts and 299 million occasional viewers – numbers expected to breach 600 million total viewers by 2024.
More than 57% of current viewers are based in Asia-Pacific, followed by 17% from Europe and 12% from North America according to Nielsen.
Esports viewership growth projections. Image Source: EsportsObserver
The accelerating viewership momentum and expanded access through mobile gaming shows no signs of slowing down.
Highest Overall Player Earnings
No player has earned more prize money through esports competition than Johan “N0tail” Sundstein. The Danish Dota 2 professional has amassed over $7.2 million during his prolific career spanning multiple championships.
He stands over $2 million ahead of top earner runner ups like Jesse “JerAx” Vainikka and Anathan “Ana” Pham, two fellow elite DOTA players.
After stepping back as a competitor, Sundstein remains involved as a team owner and manager with Oakley Sports Management, leveraging his profile to expand business opportunities. This trajectory from player to entrepreneur is common across various esports role models.
Average Player Salaries
Esports athletes around the globe signed contracts guaranteeing average salaries between $4,000 to $5,000 per month in 2017 according to statistics reported by cyberathlete professionals league Esports Earnings.
As the industry matures, individual player salaries continue rising substantially year-over-year thanks to more investment bolstering prize pool payouts and intensifying competition for talent between leading teams.
Based on the latest reports, average monthly salaries now range between $5,000 on the low end, up towards $15,000 for top players on championship organizations.
Major Events Viewership Records
The 2021 League of Legends World Championship shattered the event viewership record, peaking at over 73 million concurrent viewers according to industry leader Esports Charts.
For perspective, the previous record came from the 2019 tournament, which saw over 44 million peak viewers. So last year‘s epic World‘s finals between EDG and DWG KIA outdid the maximum numbers from 2 years ago by over 60%!
League of Legends World Championship 2021 viewership chart. Image Source: Esports Charts
These accelerating year-over-year gains showcase the skyrocketing interest in premium events as competitive gaming cements itself firmly into the mainstream conscience moving forward.
Projecting the Future
Reputable industry analysts widely predict rapid continued expansion. Newzoo, Roundhill and others estimate total esports marketrevenue exceeding $2 billion within 3 years.
Similarly, viewership metrics like hours watched seem set to breach over 2 billion by 2027. Factoring in projections around betting participation, advertising sponsorships and licensed broadcasting deals reaching hundreds of millions in value per year, the upside appears tremendous.
Barring any unforeseen circumstances, these statistics support competitive gaming‘s ascent as a permanent, still rising participant inside the greater professional sports entertainment industry thanks to strong viewership growth amongst the coveted younger demographics.
I hope this guide has shed light on the breakneck growth trajectory that competitive gaming finds itself on currently through data-driven insights! Let me know if you have any other questions on this emerging space in the comments section.