How big has the esports industry been since the pandemic?

The year 2020 marked history with the rise of Covid 19 infections around the world. Travel restrictions, the lockdown and other new rules and restrictions have affected all sports. Physical sports have been hit hard due to social distancing and lockdown regulations. Esports, on the other hand, is doing well as its physical counterparts shut down. The influence of esports has grown so much with the Covid 19 pandemic that bookies have included online sporting events in casino markets.

Over the past decade, the esports industry has grown exponentially. According to e-Sports UK, the industry topped 2020 global revenue with at least $ 950.3 million, and the customer base has grown to 450 million people. By 2024, the industry is expected to experience growth of up to $ 1.185 billion.

There are three notable effects of Covid 19 on the esports sector:

  • The pandemic has increased the engagement of esports and video game users.
  • Most gaming companies can now account for their profits since the start of the pandemic.
  • The existing trends within the gaming industry have accelerated since the start of the pandemic.

Covid-19 boosted engagement with the community

The gaming industry which includes gambling on sites available on best, just like the others, has come to the fore in supporting community initiatives on mitigating the effects of Covid-19. Sometimes the esports industry causes a gambling problem. However, the pandemic has revealed it as an industry that positively engages with the community. Esports engages in community initiatives such as charitable pledges, donations of excess computing power, and excess funds.

Computing power is essential in the era of the pandemic to help researchers better understand the virus, especially with its recent mutations. Response funds donated by the esports sectors are helping children at risk of contracting the virus and workers affected by the pandemic.

A boost in esport

Electronic sports are typical home activities. Most sports betting, for example, has reported an increase in registrations during the pandemic period. Nintendo and Tencent, two renowned Asian esports companies, saw their sales increase in the first quarter. Nintendo only reported having sold more than half of its games, a move that increased profits by 41%. Tencent’s revenue, on the other hand, was approximated at increase by 31 percent. There are reports of new games released during Pandemic Season doing much better than others in Standard Time.

Other engagement metrics tell the same story if you thought isolated sales and downloads don’t accurately represent how the market works. Verizon, a renowned digital company, reported 12% growth in digital video traffic, 20% in web traffic and 75% in gaming traffic. It seems most people are looking at esports as a way to make some extra cash during the status pandemic indoors and as a hobby activity. StreamLabs also reported 20% growth in web traffic on Twitch, YouTube Gaming, and Facebook Gaming.

The lockdown has shut down most of the world’s mainstream sports. This move led to the cancellation of most traditional sports, which means the only option to enjoy your favorite games and place a bet is to bet on esports and esports. 2020 has been a rare opportunity for the esports market to rise amid the screams. Due to the high levels of anxiety, more and more people continue to turn to gambling for relaxation.

Electronic sports have embraced new technologies

Change is a big reason why many businesses are closing. If you can’t catch up and adapt to changes in the economy, you risk being left behind. The Covid pandemic has caused the esports industry to reinvent itself. The industry is well known for implementing innovative technologies to grow and stay stable in the market. The sport offers great streaming options for fans around the world.

Traditional sports leagues have discovered the impact of adopting esports. It is the only way to survive in these times of pandemic. NASCAR, for example, began hosting online races and has since received 1.3 million total viewers through Fox and FS1. The FIFA ePremier League and the F1 Virtua Grand Prix Series have also realized the benefits of adopting esports.

Statistics showing growth for the esports market

A lot researchers and publications look into the world of esports. PwC recently received findings that at least two-thirds of people under the age of 35 watch or read in-game content during lockdown periods.

Setbacks in the market

The growth of esports during the pandemic has not been without change. The games are played online however, but live events are the most important in esports. Life events can include musical and performance events, both for activities and merchandise, soccer among others. They bring a lot of excitement to home viewers.

The pandemic has been accompanied by the cancellation of many events planned in advance. Unfortunately, the host societies had made payments for these events; event cancellations meant millions of dollars in lost revenue. This loss may be a minor blow to a business, but overall its millions of losses in the industry.

Here is a list of some of the events canceled with the impact of the pandemic:

  • East Coast Launch 2020
  • Fortnite World Cup 2020
  • Summer game party
  • ESL One Birmingham
  • EVO 2020 online
  • Capcom Pro Tour 2020
  • Chinese League League of Legends Pro
  • Dota 2 International 2020

Some of the above events continued but not as planned, while others did not occur; however, the logistical change has had an impact on the entire industry. Global lockdowns dramatically affected their ability to play. It was difficult for companies that took a long time to adjust, let alone the millions of dollars in losses they suffered.

Interesting related article: “Will esport join the Olympics?”