Esports Industry Continues to Grow Despite COVID-19

COVID-19 has impacted all industries, and the esports industry is no exception. According to reports from Newzoo, the global esports industry was projected to reach 1.6 billion U.S. dollars by 2023. While revenues are projected to fall during 2020 due to a decrease in sponsorships, the industry as a whole is expected to maintain momentum and continue growing. Much of the fall in revenue can be attributed to COVID-19-induced slowdowns in other industries, as necessary decreases in marketing budgets have a direct impact on sponsorships.

Another change in the esports industry is the cancellation of in-person events to comply with quarantine and mandated lockdowns across the globe. The shift to online events has increased viewership on streaming platforms. In April of 2020, Fortnite hosted a virtual Travis Scott concert, with over 27.7 million unique players participating in the live stream. This partnership between esports and a music artist speaks to the growth in collaboration with the entertainment sector.

Analysts predict that esports will directly benefit from COVID-19, as it has legitimized professional gaming, streaming, and the relevance of the esports industry. Esports has been growing for several years now, but the increased viewership during COVID-19 lockdowns has placed esports on an irreversible trajectory.

With health experts predicting a surge in COVID-19 cases during the winter months of 2020, mandatory lockdowns and quarantines may be reimposed in various countries. While these shutdown measures will negatively impact most industries, online streaming allows esports events to continue reaching audiences.