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Who are the three major competitors in the esports industry and how do they differentiate themselves (products, target markets, brand positioning, etc.)?
Hello! Thank you for your question on the major competitors in the esports industry and how they differentiate themselves. I understand you would also like the know the estimated market size to understand the scope of opportunity in the industry. The market size for the esports industry is approximately $463 million in 2016, which I have detailed in more depth in my response. I've also included a spreadsheet with a summary of results for a competitive landscape of these major players.
METHODOLOGY
I used existing information on the market size from Venture Beat and Games Industry. I have summarized the data provided by those two sources below.
In the attached spreadsheet, I included information on the three major competitors in the esports industry, in the following categories:
-Company Overview
-Competitive Advantage (including brand positioning)
-Target Market
-Products & Services
-Pricing
The scope of the esports industry is huge. The industry includes several different segments, such as:
-Competitive Leagues/Platforms
-Major Franchise Teams
-Reporting
-Coaching & Training
-Networks & Niche Networks
-News Aggregation
-Fantasy eSports & Betting
For the purposes of this competitive landscape, I have focused on competitive league platforms, as they encompass a big part of the market. I encourage you to submit further requests for other segments that may interest you. We are happy to help!
According to my research, there are 3 major league platforms that dominate the market. These are specifically gaming platforms on which players can participate in eSports, as opposed to viewing and betting platforms. To determine which league platforms were the best, the clearest measure from available data was the number of registered users. Major League Gaming topped the list at 10 million users, while MTG-owned Electronic Sports League has approximately 6.9 registered users. FACEIT, the final competitor in the ring has approximately 6 million users. While smaller platforms also exist, these are the clear leaders in the industry for competitive eSports gaming platforms.
You will find a more detailed breakdown of the competitive landscape between these three companies in the attached spreadsheet.
MARKET SIZE
According to Venture Beat, the esports market is expected to grow to $463 million in 2016. This number is expected to grow to $1.1 billion by 2019. This 43% growth is due to a rise in esports enthusiasts (131 million total, up 27.7%) and another 125 million occasional viewers who tune in mostly to major events only. The market growth is beginning to slow (after a 67% growth rate in 2015), but is still growing at a healthy rate. Venture Beat's numbers seem to be on the conservative side.
Games Industry estimates that the market size in 2017 will pass $1 billion in 2017, much sooner than the Venture Beat's projections. They also report that the market will grow to $1.23 billion by 2019, also higher than Venture Beat projects. However, they do offer some insights to the growth beginning to slow.
The industry relies on advertising and sponsorships for approximately 74% of its revenue, which is beginning to create obstacles. Due to a "lack of credibility and reliability of accurately assessing the 'true' eSports audience," advertisers and sponsorships are wary of scaling up their involvement in the esports industry. Gambling and doping have also had a negative effect, but are still considered "growing pains" in the bigger scope of the industry. The rise of viewership is expected to combat some of these concerns, but there is still cause for concern in these areas as the industry continues to grow.
CONCLUSION
To wrap up, the esports industry growth is beginning to slow, but still growing at a healthy rate. The market is expected to grow past $1 billion in 2017, reaching up to $1.23 billion by 2019. Top competitors in the industry include FACEIT, MLG and ESL.
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