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eSports is poised for growth in 2020

esports is poised for growth in 2020. While the value so far has been captured by the platforms and publishers, new audiences and growth will open up the opportunity to other players in the esports ecosystem.

Lets start with some numbers:

  • Newzoo estimates the gaming market revenue will reach $189.6 billion in 2020, up from 148.8 billion in 2019.
  • According to a report by Quantum Tech Partners, approximately $1 billion was invested in the eSports category in 2019,
  • M&A transactions in esports reached $475 million in 2019, across 33 deals

As the global gaming industry continues to grow in 2020 and beyond, Quantum Tech Partners projects esports revenues will grow to $4 billion  the outlook for esports revenues, as it expects the industry to reach $4 billion in revenues by 2022, much higher than predicted by Goldman Sachs ($2.96 billion) and Newzoo ($1.79 billion).

Global games market is projected to grow in revenue and usage

But when it comes to eSports there’s a certain stagnation with regards to who is capturing the majority of the value: game publishers and the top streaming platforms. Judging by the growing interest in esports and the various 2020 predictions, that is expected to spread out to other parts of the esports ecosystem:

  • Viewership for esports events is projected to grow and break new records. Broadcasters are getting serious about esports providing ESPN quality coverage to the top competitions
  • The streaming platforms will also want a piece of the action and you can expect in general more content/coverage of esports will become available (and monetised!)
  • Real money betting and social betting are increasingly becoming popular, creating new revenue opportunities for streamers and more engaged audiences on gaming streams
  • Gamers wishing to improve their skills can now take part in training platforms which analyse their weaknesses in the game
  • Brands looking to reach the gamer demographic are looking to enter the space, partnering with streamers directly or sponsoring tournaments and competitions
  • Cloud gaming (and in the future 5G networks) will make console games accessible in the cloud via the mobile, growing audiences and fan based
  • Twitch, Mixer, Youtube, Caffeine, Facebook and other streaming platforms will continue to open up their streams for third party developers to better leverage their audiences and data

And the list goes on. Intel has announced it will host an esports tournament in Tokyo during the lead-up to the 2020 Olympics. esports stadiums are popping up everywhere, including the Fusion Arena, a $50 million stadium being built by Comcast in Philadelphia. We’re very excited about these trends at Remagine Ventures, and looking to shine a spotlight on the opportunities esports presents for startups.

Remagine eSports 2020 on Feb 5th in Tel Aviv

To that end, next week we are hosting our second annual esports event in Tel Aviv with a fantastic line up:

In attendance there will also be the top esports startups and investors in Israel. If you’re in Tel Aviv next week, we’d love to have you join us. Spaces are limited, please RSVP here: https://remagineesports2020.splashthat.com

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Co Founder and Managing Partner at Remagine Ventures
Eze is managing partner of Remagine Ventures, a seed fund investing in ambitious founders at the intersection of tech, entertainment, gaming and commerce with a spotlight on Israel.

I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.

I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
Eze Vidra
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