THE EXPLOSIVE GROWTH OF ESPORTS

AND WHY IT MATTERS TO EVERYONE

C A SUAL G AME S SEC T OR REP OR T 2016

CGA.
CGA.

THE EXPLOSIVE
GROWTH OF
ESPORTS
Rapid Growth in Revenues
& Audience Continues
Global Esports Audience Growth 2014-2019
+11.2%

OCCASIONAL VIEWERS

CAGR

ENTHUSIASTS

2014-2019

+11.2%

+13.3%
YoY

YoY

114

111

90

MILLION

125
MILLION

MILLION

MILLION

115

165

131

180
MILLION

MILLION

MILLION

MILLION

2014

2015

2016

2019

Key Facts
The global esports audience
was 226 million and the
number ofEsports
Enthusiastsreached 115
million in 2015, a YoY growth
of 27.7%
Global revenues in 2015
reached $325 million, a growth
rate of 67.4%. North America
accounted for $121 million of
this.
In 2019, esports revenues will
have surpassed $1 billion and
the audience will have grown
to 435 million worldwide.
Trends behind esports are
redefining the DNA of future
successful games and provide
new opportunities for game
companies big and small.

Source: Newzoo 2016 Global Esports Market Report

Esports Trends Are Redefining

The DNA of Games
The combination of increasingly sophisticated and
immersive gaming experiences, streaming
technologies and social media platforms is
transforming the video games industry. The
personal gaming experience is being supplemented
or even replaced by a community experience, and
moving from personal entertainment to spectator
sport.
This shift in consumer behavior is creating new and
exciting opportunities all along the gaming value
chain, from the way games are developed and
commercialized to enabling gamers themselves to
monetize content streamed via their own channels
and to their own audiences.
These underlying trends that are driving the
growth of esports are redefining the DNA of games
and digital media as a whole and accelerating the
disruption of traditional media.

THE GROWTH
OF ESPORTS

Six Trends Behind Esports Growth

BUSINESS
1. Games as a service
2. Cross-screen entertainment

TECHNOLOGY
3. Creator & live streaming tools
4. Video platforms & communities

CONSUMER
5. Creation & Involvement
6. Consumers entertain consumers

Esports Revenue Growth 2014-2019 | Global

+40.7%

MEDIA RIGHTS, MERCHANDISE &

TICKETS, ONLINE ADVERTISING,
BRAND PARTNERSHIPS, ADDITIONAL
GAME PUBLISHER INVESTMENT

CAGR
2014-2019

+42.6%
+67.4%

$1072
MILLION

YoY

YoY

$463
$194

$325

MILLION

MILLION

MILLION

2014

The coming year will see the Esports Economy

grow to $463 million, a year-on-year growth of
43%. North America will strengthen its lead in
terms of revenues with an anticipated $175
million generated in 2016.
China and Korea together will represent 23%
of global esports revenues, totaling $106
million in 2016.

2015

2016

2019

The market will continue to experience rapid

growth, crossing the $1 billion mark in 2016.

Source: Newzoo 2016 Global Esports Market Report

T H E G R O W T H O F E S P O R T S | CA S UA L G A M E S A S S O C I AT I O N 3

Average Spend Per Fan Grows

38%

Comparing esports and traditional sports makes sense to a certain

extent. As the Esports Economy matures, draws more advertisers and
increases its merchandise and ticketing revenues directly from
consumers, the average annual revenue per fan will continue to rise
toward that of traditional sports.

Of global revenues in
2016 come from North
America with 23% from
China & South Korea

This coming year, we anticipate $3.5 per fan, still almost five times
lower than that of basketball ($15 per year) but up from $2.2 in
2014. Using a conservative scenario, we estimate the annual average
spend per esports fan will reach around $6.0 by 2019.

44%
Of the esports audience
In 2016 comes from
APAC

ESPORTS
GROWTH
Esports
Revenues
PerSCENARIOS:
Enthusiast |REVENUE
2012-2020PER ESPORTS ENTHUSIAST
Based on Annual Average Revenue per Enthusiast

$20

>$2Bn

The average annual

revenue per fan of the NBA

$11

$15

TOTAL ESPORTS
REVENUES

$1.0Bn

The average annual revenue

per fan of basketball

2013
GLOBAL NUMBER OF
ESPORTS ENTHUSIASTS

$3.5

$2.2

$0.46Bn

2016 Newzoo

90M

REPORT
SCENARIO

>$1Bn

AVERAGE
REVENUE PER
ENTHUSIAST

2014

$6.0

$7.6

TOTAL ESPORTS
REVENUES

$0.19Bn
2012

ALTERNATIVE
OPTIMISTIC
SCENARIO

2015

2016

131M

2017

2018

2019

2020

180M
Source: Newzoo 2016 Global Esports Market Report

Source: Global Growth of Esports Report Premium | January 2016 | www.newzoo.com/esportsreport

NUMBER OF MAJOR EVENTS & TICKET

2% 4%REVENUES
Split Per Region | 2015

NUMBER OF MAJOR EVENTS & TICKET

2% 4%REVENUES

8%

Split Per Region | 2015

NUMBER OF MAJOR EVENTS & TICKET

2% 4% REVENUES
Split Per Region | 2015

NUMBER OF MAJOR EVENTS & TICKET

4%
2%REVENUES

8% 8%

Split Per Region | 2015

Events at the Heart of the Esports

NUMBER OF MAJOR EVENTS & TICKET REVENUES
2% 4%
Split Per Region | 2015

8% 8%

11%

8% 8%

THE GROWTH

112
37%
2%

OF 11%
ESPORTS

112
37% 0%

events

0%

10%
5%
18%
11%
NUMBER OF MAJOR EVENTS & TICKET REVENUES
4% Region | 2015
10%
events
2%
Number
of
Major
Events
&
Ticket
Revenues
|
Per
12%
11%
5%
Split Per Region | 2015
8% 8%
18%
37%
11%
0%
10%
2% events
2% 4%
12%5%
11%
8%
8%
35%
18%
37%
11%0%
ticket
reve
10%
events
2%
E-EU
12%
2% 4%
11%NAM 35%W-EU
5%
8% 8%
18%
37%
11%
ticket revenues
events
W-EU
E-EU
CHINA
12% 10% 11% NAM
8%
35%
5%
18%
36%
8%
11%
37%
ticket revenues
events
W-EU
E-EU
CHINA
S. KOR
12%
10%
11% NAM
18%
36%
8%
11%
35%W-EU
ticket revenues
events
NAM
E-EU
CHINA
S. KOREA
RE
37%
12%
18%
11%
36%
NAM
W-EU
E-EU
CHINA
S. KOREA
REST APAC
12%
11%
ticket
ticket
revenues
major
events
18%
36%
revenues
events
NUMBER OF MAJOR EVENTS & TICKET REVENUES
2% 4%
Split Per Region | 2015

NAM

18%

NAM
NAM

NAM

W-EU

1120%
2% 37%

2%
events

$21M
$21M

12%

$21M

$21

$21M

112

12%

112

112

112

112

112

8% 8%

E-EU

W-EU

W-EU

CHINA

E-EU

W-EU

E-EU
CHINA

S. KOREA

E-EU

CHINA

CHINA

S. KOREA

S. KOREA

36%

S. KOREA

REST APAC

REST APAC

LATAM

REST APAC

LATAM

LATAM

MEA

MEA

Source: Newzoo
LATAM
MEA2016 Global Esports Market Report

REST APAC

There were 112 major esports events in 2015 and they generated an estimated $20.6 million in ticket
revenues. In terms of the number of events, North America dominated by hosting 37% of all events. This
amounted to 42 events throughout 2015. Western Europe followed, hosting 18% of all events. MLG, ESL
and Blizzard were the organizers behind the majority of North American events. Dota 2 and CS:GO are the
most played games at tournaments.
Once again, the biggest prize pool belongs to The International, which topped $18.4 million, with just
$1.6 million coming from Valve. The Frankfurt Major, also Valves event, awarded Europes largest
prize pool: $3 million.

$61.0M

Global Growth of Prize Money | 2005-2015

+70%

REVENUES

YoY

$36.0M
31%

SHARE MOBILE
REVENUES

$19.8M

$3.6M

$4.4M

$6.1M

$6.4M

2005

2006

2007

2008

Source: Newzoo 2016 Global Esports Market Report

$3.5M

2009

$5.2M

2010

$9.7M

+3.1%

$13.1M
REVENUES CAGR
2014-2018

2011

2012

2013

2014

2015

T H E G R O W T H O F E S P O R T S | CA S UA L G A M E S A S S O C I AT I O N 5

Reaching a Valuable Audience

Age/Gender of Esports Enthusiasts | Global | 2015

50%

F51-65

Of Enthusiasts have a high income

vs. 34% of the total online
population

1%

F36-50

7%

M10-20

23%

F21-35

62%

16%

115

F10-20

7%

M51-65

of Enthusiasts participate in team

sports vs.
47% of Occasional Viewers

MILLION

65%

M36-50

1%

11%

M21-35

38%

of Enthusiasts participate have a

full-time job vs. 48% of the total
online population

Source: Newzoo 2016 Global Esports Market Report

Spending on Mobile Games | Global | 2015

Esports entertains a young and
desirable demographic with males
aged 21-35 representing 38% of the
Enthusiast audience. The majority
of the audience has a full-time job
and a higher average income.

56%

43%
39%

38%
26%

29%

27%
16%
12%

8%
3% 3%

Nothing
ONLINE POPULATION

Minor Spenders

Average Spenders

OCCASIONAL VIEWERS

This group is also more likely to be

spending big on mobile games with
8% of Enthusiasts classed as big
spenders. Proof that the esports is a
trend relevant to all segments of
the games industry.

Big Spenders
ESPORTS ENTHUSIASTS

Source: Newzoo Consumer Insights

Mobile Esports: China Leads Surge

THE GROWTH
OF ESPORTS

China boasts both the largest esport audience and the largest mobile games market in the world.
Perhaps unsurprisingly then, it has become a leader in the mobile esports or competitive gaming scene.
Chinese game companies launched more than 30 competitive mobile titles last year and in December
2015, 24% of top 100 grossing mobile games on Chinese Android stores were esports games. Many mobile
esports tournaments were organized throughout the year with millions participating both on and
offline, making mobile esports the most discussed topic in Chinese game industry last year. The
highest prize money so far was recorded as 1 million RMB ($150k) for the national champion of
Tencents League of Kings.
Top Android Esports Titles in China by Downloads | Dec 2015
Game Titles
Happy Lord
GunZ Dash
League Of Kings
Speed Up
Wefire
Quan Min Chao Shen
Thunder Fighter
Tian Tian Xuan Dou
We Shoot
King of Fight
Long Craft
You Long Ying Xiong

Genre
Cards
Casual (Parkour)
MOBA
Casual (Parkour)
FPS
MOBA
FPS
Action
FPS
Action
Action
Action

League of Kings holds #1 on

Androids Top Grossing Ranking.

1.3 million

Viewers of the final of Neteases Fantasy

Westward Journey 2 tournament.

Mobile Esports Games by Publisher | Android | Dec 2015

24%
Other
companies

42%

Tencent
is the dominant
esports
publisher

Tencent

50%

of Top 100 Grossing

mobile games on
Android in Dec 2015
were esports titles

Netease

8%

Source: Newzoo/TalkingData China Mobile Games Market Monitor

T H E G R O W T H O F E S P O R T S | CA S UA L G A M E S A S S O C I AT I O N 7

See you in Singapore

Please join us for the fifth annual Casual Connect Asia. T
Singapore is the hub for the largest growing sector of the
games inudstry. Great speakers, interesting and
professional industry insiders, and of course, signature
evening events.
http://asia.casualconnect.org

For press inquiries, please email

jessica@casualgamesassociation.org
Learn more about the games industry with the best
speakers, networking, lectures and data to help you
succeed in a crowded market at:
Casual Connect Asia in Singapore
17-19 May 2016
Casual Connect USA in San Francisco 18-20 July 2016
Casual Connect Tel-Aviv
November 2016
Casual Connect Europe in Berlin
February 2017

Casual Connect Asia in Singpaore

May 17-19, 2019

About Newzoo
Newzoo is an innovative global market research
and predictive analytics firm with a primary
focus on games. Newzoo provides its clients with
a mix of market trends, financial analysis,
revenue projections, consumer insights, data
modelling solutions and predictive analytics
services across all continents, screens and
business models and works for the majority of
top 25 public companies by game revenue.

ABOUT THE CASUAL GAMES ASSOCIATION

When it comes to the health of your business, the more things that work
together, the better. Which is why the Casual Games Association is a
critical portion of the success of your company and the industry as a
whole. It means that you and your team have access to cutting edge
educational resources and are connected to thousands of other game
industry professionals, members of the press and service providers
around the globe.
Learn more at http://www.cga.global

CGA.
CGA.