Will the eSports industry continue to accelerate?
Over recent years, the eSports industry has grown at a rapid speed and it has no incentive of slowing down. According to Statistica, there has been a projected $776 million increase in competitive gaming revenue from 2012 to 2018. The industry isn’t stopping there and is expected to continue its growth to an impressive $1,650 million in 2021.
It just goes to show how big the eSports industry really is when you think 200 million people watched the League of Legends World Championship in 2018 compared to those who watched the world famous super bowl that same year, which was still an impressive 103 million people.
Although there has been clear evidence that eSports is more than just a craze, some investors and critics are anxious that the growth rate could begin to level out over the coming years. We have recently seen some famous eSports names let go some of their teams and tournaments, such as Optic Gaming who axed their active Halo Squad last March, even though they won the Halo World Championships in 2017.
One of the major threats which challenges the growth of eSports is government regulation. Last year, the Chinese government made a dramatic change to eSports titles that they believed featured themes which didn’t meet certain ethical rules or pass social standards. This has resulted in many of the major and more profitable eSports games, such as Fortnite, League of Legends and Overwatch, receiving cautionary notes and bans due to blood and gore, as well as female characters being portrayed in certain ways.
There may be some speculation on whether or not the eSports industry will continue to grow at its current rapid pace. What we do know is that the majority of eSports fans are young, which offers confidence and hope for the industries growth as teams all over the world can build up large fan bases and can continue to expand.
There are many risks that can affect eSports and at G&M International we specialise in protecting the games industry. We have a range of insurance packages to fit different needs from our Esports Teams Insurance and Event Insurance to our more specialised Cyber and Property products. Call us today to discuss your needs on +44 (0) 207 977 1491.