Special Sector Report – eSports
A billion dollar market in the making
In our strive to find interesting investment opportunities, we are constantly screening and analyzing companies and industries. This includes not only monitoring well established players and markets, but also emerging technologies and trends. That way, we were able to become early investors in e.g. mobile gaming back in 2009 and additive manufacturing in 2011, generating outstanding investment returns.
Now we have found the next industry that seems set to offer early investors the chance to outperform the market in the years to come. Besides positioning ourselves accordingly, we have decided to publish this Special Sector Report that will go through the industry’s fundamentals, its growth drivers and prospects. Furthermore, we have identified 5 listed companies, which enable you to participate in what we believe will be one of the most interesting sector themes over the coming years.
The industry we want to highlight in this Special Sector Report is called eSports. eSports, short for electronic sports, is an umbrella term for organized, competitive computer gaming, usually between professionals. In plain English: good old computer games have become serious business for professionals that make a living playing them. Around them, a huge industry is emerging with big bucks to be made.
eSports is one of the fastest growing aspects of gaming, and at first sight it is hard to believe how big eSports already is today. Millions of people consider themselves fans of both playing and watching games like League of Legends, DotA 2, and Counter Strike: Global Offensive. Fun fact: There are more League of Legends players in the world than there are people in France.
The biggest eSports events are already filling arenas and drawing viewership levels that dwarf most traditional sports. The 2013 League of Legends World Championship attracted 32 million online viewers, more than double the amount of the World Series of the US Major League of Baseball and even more than the deciding game in the NBA finals that year. The League of Legends final also managed to fill the same football stadium that hosted the World Cup semi-final in 2002 with 40,000 fans. DotA “The International” in 2015 meanwhile, saw competitors from around the world compete in Seattle, USA for a prize pot of over USD 18 million. Top-players can earn millions in price money and additional become stars on lucrative video platforms like MLG.tv, Twitch and YouTube.
According to market intelligence firm Newzoo, there were 205 million eSports viewers in 2014. By 2017 they estimate that this will grow to 335 million. This kind of popularity has led to those games making hundreds of millions of dollars from in-app purchases as well as fueling the surrounding eSports business. According to SuperData Research, the total global eSports market was expected to be valued at USD 748 million at the end of 2015, up from USD 612 million in 2014. Year-over-year revenue growth is driven by an increase in advertising as well as more brands entering the segment. By 2018, the eSports market is projected to reach USD 1.9 billion, driven by the growth of direct revenue sources such as betting sites and tournament platforms.
Get our exclusive 19-page eSports Special Sector Report now and find out how you can invest in this fast growing industry. We highlight 5 listed companies that are set to benefit from the tremendous growth.