Presently, every business and multinational corporation (MNC) wants a piece of the esports industry. All well-known businesses from many walks of life are making inroads into this burgeoning industry, demonstrating the full potential of esports in India and other countries across the world.
In FY 2020, the esports business in India accounted for almost 4 per cent of all online game users and 9.13 per cent of overall gaming market revenue. According to this Insider Intelligence study, 1.5 billion people make up 57 per cent of the global esports viewership in 2019. In 2021, the worldwide esports viewership is expected to reach 474 million, with USD 1.1 billion in money generated from events, media rights, and sponsorships. There are millions of participants, subscribers, and live streaming fans all around the world.
Advertisers and agencies are expected to increasingly leverage esports tournament audiences to increase audience reach and engagement as the sport grows in popularity among young people, with tournament sponsorship and syndication revenue likely to quadruple to over 3.5 billion INR at a 45 per cent CAGR. In addition, Newzoo predicts that the business will increase by 15 per cent yearly, reaching USD 1.8 billion by 2022, with income coming from media rights, live event ticket sales, product sales, and in-app purchases, with event sponsorship and advertising accounting for the majority of the revenue (69 per cent).
Esports is a developing industry both online and offline. Covid-19 has done nothing except support the sector and point it on the right path. The rise of the industry has benefited from the provision of robust network access to all urban and rural regions in India, as well as the arrival of stiff competition in the market. With so many esports franchises, tournaments, advertisers, influencers, and other players entering the market, the only way for this business to grow is up. The Indian esports sector is predicted to produce revenue of 11,900 crores by the fiscal year 2023, indicating a CAGR of 22 per cent, as the world economy undergoes a wave of the digital revolution.
According to Newzoo, the emerging esports business would produce $1.8 billion in revenue by 2022 if present growth rates continue. Over the next three and a half years, India’s esports market is predicted to develop at a CAGR of 46 per cent, with streaming platforms accounting for a large share of esports income.
We believe in this industry’s genuine potential as an organisation, and we see great effects beyond the games as a result of the numerous sponsorship and brand partnerships we’ve been contacted with. There is fierce competition, and everyone strives to stay one step ahead of the competitors. At such an early point in our country’s history, I believe the only way for us to develop, or for anybody involved in this business to flourish, is for us to work together in harmony and establish rules, laws, forms, and other mechanisms that will assure the industry’s long-term viability.
We are here to build something for the esports industry as a whole, and we’ll only be able to do it if we all join hands and work together to achieve our goals. This place cannot be grown by a single person, company, or brand. This area is for anyone who enjoys gaming and wants to make a profession out of it.
“The Indian esports industry is at the forefront of many industries around the world and has great opportunities if we look at India’s young population and the growing trend towards gaming,” said Chandrahas Panigrahi, Director of Marketing and Consumer Business at Acer India.
With the continued support of players and stakeholders, the increasing popularity of mobile gaming in India, and the recent surge in mobile esports gaming, the esports business in India has every opportunity of becoming one of the greatest on the continent, if not the whole globe.
Even after the present epidemic has passed the esports ecosystem and allied sectors like game publishers, streaming platforms, chip makers, graphics card manufacturers, and others are projected to thrive. We witnessed esports reach new heights in 2021, and we expect it to continue rising in 2022 as the prize pool and the number of games increase.
The article is written by Yash Bhanushali, Founder and Chief Executive Officer (CEO), Orangutan Gaming.