For a long time, video games were among the most popular pastimes. However, the industry began to shift when things became competitive, and video games became the base for a new kind of sport: Esports.
Esports, short for electronic sports, are events where fans watch competitors play their favorite game. Initially, this started off as a small subculture with few followers. Today, it’s an entire multi-billion dollar industry with millions of fans and countless events.
Going into the professional sports section means that Esports has begun to reshape the industry and entertainment. Let’s see how.
The Rise in Popularity
One of the many aspects that made Esports as popular as they are today is technological advancements. The digital nature is the main “selling point,” meaning people can enjoy these events whenever and wherever they want to. Platforms like Twitch and YouTube Gaming have made the process quite easy and allowed fans from all over the world to watch their favorite players.
Even though content is limited to certain areas, there are tools that can help with that. Some events and streaming options are limited to US residents only, and a USA VPN bypasses this restriction. This allows international fans to access content that would otherwise be unavailable.
When you look at the numbers, it becomes clear why Esports is considered a massive industry. With an audience of 575 million in 2024, we’re looking at numbers comparable with real sports events. This year’s League of Legends World event had 6.94 million concurrent views, making it the most-viewed Esports event in history.
Bridging the Gap Between Traditional Sports and Esports
The rise in popularity of Esports has pushed traditional sports organizations to consider dipping their toes into the digital gaming niche. This is why we began to see major leagues like the NFL, NBA, and FIFA launch their own Esports division. NBA 2K league or eMLS are only a few of the more popular ones to tap into this growing market. Bridging the gap between the real sport and the digital one means fans from one side will likely be interested in the other. This is a great way to increase fan bases and improve revenue, which is beneficial for both industries.
Focusing on digital sports means that many popular sports locations are hosting Esports events. For example, Madison Square Garden has hosted tournaments such as Counter-Strike or Valorant. This is just one example of how digital sports events are reshaping what we perceive as sports. Despite being a game, it’s still an event that relies on skill, strategy, and teamwork, similar to regular sports.
The Economic Impact
Bringing in more fans and bridging the gap will continue to popularize the niche, but it also offers many economic benefits. In the past several years, this industry grew significantly, reaching the $2 billion mark in 2023. It is expected to pass the $13.7 billion mark by 2032. The increase in numbers is a result of increased merchant sales, tickets for events, sponsorships, media rights, and more.
Sponsorships are the main driving force of this industry. Many brands are investing heavily in Esports, aiming to reach the younger, tech-savvy generation. This shift is due to the new generation’s less engagement with traditional advertising channels. Plenty of popular names are associated with Esports teams, such as Intel, Nike, Coca-Cola, and many others.
Another aspect of the Esports niche that has popularized massively in recent years is betting. It’s a lucrative segment that helps keep the revenue numbers high. To put that into perspective, the Esports betting niche was valued at $0.43 billion in 2023, and the numbers are expected to surpass $2 billion by 2032. This trend mirrors the one from the betting segments on traditional sports and is another aspect that will help additionally bridge the gap.
Technological Innovation
The world of Esports is relying on technological advancements to keep it popular, interesting, and engaging. Implementing new technologies in this niche ensures that it gets new and interesting features, which helps bring in more people on board. Technologies like virtual reality, augmented reality, and artificial intelligence are being implemented, enhancing immersion for players and spectators.
Virtual reality is becoming more and more popular in the world of Esports, allowing fans to experience the game as close to reality as possible. It puts fans in the front-row seats for the most engaging experience possible. Augmented reality is another type of technology that helps improve the experience. Specifically, it gives spectators access to stats and data while they’re watching the game, allowing them to get all the information without missing anything. Artificial intelligence, on the other hand, is aimed more towards the players and is used to create training and coaching scenarios.
Another technology that helps reshape the Esports industry is blockchain. A recently emerging trend is NFTs, which allow fans to own digital assets linked to their favorite games. There are also many play-to-earn models that enable players to monetize their skills. These innovations expand revenue opportunities and deepen fan engagement by offering new and unique ways of interaction.
Conclusion
For a long time, Esports was considered an extension of gaming, a small niche that few people were interested in. As technology progressed, this niche grew significantly, reaching today’s size. Clever technology implementations have helped the industry grow steadily, and it isn’t showing any signs of slowing down.