Niko Companions: Asia is 54% of the $1B international esports market

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Asia is greater than 54% of the $1 billion greenback international esports market, in line with market researcher Niko Companions.

Asia is the world’s largest and most vital area for esports, producing $543.8 million in revenues within the area in 2020. This can be a 4.9% enhance over 2019 regardless of the challenges of COVID-19, Niko Companions mentioned. Throughout 2020, esports operators needed to shut down their bodily occasions and shift to digital broadcasts of their occasions. But the Asian market nonetheless managed to develop, and it stays on a powerful course in 2021. Revenues for 2021 will possible be near $600 million, or 10.5% progress over 2020.

This excludes the income generated by video games and contains the income of the business of esports. The worth of esports licensing and media rights grew in 2020 as platforms sought content material and sponsors sought alternate options to relationships with conventional sports activities media. Esports’ means to maneuver to online-only play made them a well-liked different to reside media occasions impacted by new rules.

Making up for the lack of bodily revenues equivalent to merchandise and ticket gross sales, esports viewership in Asia boomed in 2020, rising to 618.4 million esports spectators in 2020. This can be a 21% enhance over the 510 million Asian esports spectators in 2019.


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Alexander Champlin, the director of esports analysis for Niko Companions, mentioned in an e mail to GamesBeat that the corporate assumes in-person occasions will proceed in China, however the remainder of the area will likely be slower to return to esports stadiums.

“The Dota 2 One Esports Singapore Main, one of many largest in-person esports occasions to happen in Southeast Asia in 2021 will possible be extra of a fluke than the beginning of a return to regular,” he mentioned. “Nonetheless, the business has already begun a powerful pivot away from in-person occasions because the cornerstone of esports. Model partnerships and streaming offers have gotten the center of the business in an online-only world. Most progress in 2020 got here from these two sectors of the business and we predict, even after in-person occasions resume, these will stay the segments that drive the market.”

Above: The LCS Championship is again in individual for North America. And the finals will likely be in-person in China.

Picture Credit score: Riot Video games

Lisa Hanson, the president of Niko Companions, mentioned in an announcement that after a number of troublesome months throughout the pandemic, a lot of the esports business was again on observe throughout the remainder of 2020. Whereas tournaments have been not in individual, sponsorship and media offers rose, and as one of many few live-sports industries capable of ship its product just about, esports was capable of court docket buyers and spectators from different segments.

Niko Companions expects licensing and partnerships to be the fastest-growing elements of the esports ecosystem as international viewership continues to rise.

Niko’s report covers the esports markets of China, Chinese language Taipei, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

TJ Esports’ LPL is continuous in individual, though they too had a COVID-19 induced false begin in Q1 and have been compelled to refund tickets. Riot/Tencent esports properties League of Legends and Honor of Kings have been additionally two of the one main esports occasions to happen in-person within the second half of 2020, and a number of the first to place in-person championships on the books for later this 12 months, Champlin mentioned.

“China is sort of again to regular conduct relating to to conferences, crowds, and in individual sporting and leisure occasions, so this suits with the present state of reside occasions,” he mentioned.

Relating to 2022, Champlin mentioned, “We predict the business will possible undertake a hybrid mannequin transferring ahead. As in-person occasions turn out to be extra possible the stability will begin to shift again on this route. Nations which have traditionally benefited from esports tourism, like many in Southeast Asia, will likely be faster to make this shift as soon as reside occasions turn out to be protected, whereas nations like China, Korea, Japan, and even India, with sturdy livestreaming ecosystems and home esports industries will method this with much less urgency.”

He added, “There are fairly a number of advantages to online-only occasions together with simplicity, scalability, and lowered overhead prices. A rising variety of on-line match platforms and elevated acceptance of on-line tournaments amongst advertisers and sponsors are making the transition again to in-person much less pressing than it seemed in early 2020.”


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