Gaming Industry In 2021: Key Stats And Trends

The gaming industry in the form of eSports is one of the fastest-growing sectors in the world. eSports is an attractive investment opportunity, so check out our report.

eSports Industry: What To Look Out For In 2021

According to Statista, the value of the global eSports market is just over 1.08 billion U.S. dollars in 2021. However, projections indicate that the eSports industry will thrive in the coming years, with revenue estimates showing a 1.62 billion U.S. dollar market value by 2024.

Advertising and sponsorships comprise most of the projected revenues. Additionally, streaming, tickets and merchandise, publisher fees, and media rights will also significantly contribute to market growth. Revenue-wise, China accounts for 20% of the market, while North America and Asia comprise the two most comprehensive eSports markets globally.

eSports Industry Trends & Stats

With professional players gathered in one place, enhancing gamer’s experience is a priority for numerous game developers across different emerging economies. These developers continuously rewrite and launch codes for several platforms and consoles, such as PC, Xbox, and PlayStation. As a result, here are the latest 2021 and beyond eSports trends:

• Unprecedented market growth due to cloud gaming
• Changes in game distribution channels
• Gaming platform adoption
• Startups driving eSports industry growth even further
• Home entertainment facilitating market expansion
• Unprecedented expansion of smartphone gaming.

Unprecedented Market Growth Due To Cloud Gaming

Market growth occurs as a result of numerous factors, but cloud gaming seems to be particularly effective. The idea of cloud gaming was no more than a theory until recently when advances in sophisticated cloud technology transformed theory into practice.

How does cloud gaming work? Usually, the server, located in the cloud, is responsible for storing the games. But recent technological advancements have allowed the server to also provide all of the computation work directly from the cloud. This work includes video streaming, video encoding processing, and game scene rendering.

Numerous companies have recognized the cloud gaming opportunities and have started offering commercial cloud gaming services. Examples of these companies include T5-Labs, Gaikai, StreamMyGame, G-Cluster, Onlive, and others. As a result, the traditional gaming market now has a significant competitor in this new sector.

Changes In Game Distribution Channels

The emergence of cloud gaming has already started making waves in the eSports industry. Significant video game providers like Disney Interactive Studio, Warner Bros, Atari, Epic Games, Ubisoft, and Sega have all made steps towards establishing Onlive partnerships.

The goal of these partnerships is the opportunity to have Onlive distribute these providers’ games in cloud format. As a result, these companies can drive more revenue from this newly established distribution channel. Indeed, Nvidia GeForce Now’ gaming library featured 19 new games and announced 18 additional titles on its platform in May 2020.

Gaming Platform Adoption

Market growth will additionally accelerate thanks to the adoption of various gaming platforms, most notably eSports. The current market scenario features increasing demand for eSports, driving the overall global gaming industry.

When it comes to the most influential eSports business titles, Riot Games is at the forefront with DotA 2 and League of Legends. In terms of eSports, the community considers South Korea as the industry’s country of origin.

South Korea continues to host one of the world’s biggest tournaments despite the United States taking over from South Korea in terms of eSports business revenues.

Startups Driving eSports Industry Growth Even Further

Startups are also generating significant activity in the eSports industry, propelling the sector’s growth even further. An example is a Canadian startup, Phoenix Rising Studios, and their “The Forge Arena” game.

This company’s mission is to become an eSports household name and has already made impressive strides towards that goal. Similar to Counter-Strike and Fortnite, the Canadian startup’s game features a free-to-download model. Revenue comes from tradeable and collectible skins and other in-game extras.

Home Entertainment Facilitating Market Expansion

One of the significant advantages of electronic sports compared to traditional sports activities is mobility. In other words, the eSports industry can thrive even if players and spectators stay at home. Indeed, as an emerging industry, eSports regularly makes more than a billion dollars per year.

A survey from March 2020 revealed a 45% increase in time spent playing video games by gamers from the United States. Around the same time, there was a notable increase in first-time downloads of the popular streaming platform Twitch. Italy recorded a 41% increase in first-time downloads, while downloads in the U.S. grew by 14% in March 2020.

Furthermore, Germany recorded a 20% increase, the U.K 29%, and France 38%, according to The Hollywood Reporter. Online gaming (via internet connection) also grew in several countries worldwide. Among French gamers, 12% reported playing more online than LAN games, with 17% of U.K. gamers revealing the same. In the U.S., 29% of respondents agreed with their European counterparts.

Unprecedented Expansion Of Smartphone Gaming

Throughout 2020, there were more than 200 million smartphone game players in the United States. Mobile games will continue to be in high demand due to the numerous technological advancements in the eSports industry (cloud gaming, VR, AR).

As a result of the increasing mobile games market, major developers creating PC and console games also offer mobile game versions. In 2019, Call of Duty: Mobile was one of the most eagerly anticipated mobile games. This globally popular franchise recorded impressive results after finally transitioning into mobile.

Most gamers nowadays prefer mobile gaming over traditional platforms. Cloud gaming’s global success should further accelerate thanks to unlimited data plans and the release of 5G. The increasing investments and services aimed towards expanding 5G’s impact should prove to be another crucial factor.

Projections by Ericsson suggest that, by 2025, the number of 5G mobile subscriptions across the Asia-Pacific region will exceed 1,5 million. Similarly, some estimates indicate Southeast Asia is already home to 250 million mobile online gamers.

As a result, publishers, mobile developers, and investors can benefit from the cost-effective opportunity of the rapidly growing eSports industry worldwide.

Final Thoughts

eSports will continue to become more relevant and represent a confluence of numerous technological advancements, entertainment options, and business opportunities. The eSports industry has proven to be highly resilient, flexible, and lucrative against all odds, making it exceedingly attractive in terms of investments.

The post Gaming Industry In 2021: Key Stats And Trends first appeared on Feedster.

from Feedster https://www.feedster.com/entertainment/gaming-industry-in-2021-key-stats-and-trends/?utm_source=rss&utm_medium=rss&utm_campaign=gaming-industry-in-2021-key-stats-and-trends