Rise of Esports Arenas

June, 2019

Esports is a form of online/offline video game competition conducted generally between professional players. Esports is hosted in Esports Arena - a building designed and constructed for hosting gaming competition with large HD displays and seating capacity for a large number of people.

Europe and North America are witnessing a growth in construction of Esports Arena mainly due to growing popularity of Esports among millennials. Most of the audience of Esports include a category of people who are more inclined for watching media through streaming rather than watching traditional TV broadcasting. Advertisers can target these group of people heavily through the ads displayed in Esports competitions. This has increased the revenue generation for Esports events and is driving the need for a greater number of Esports arenas.

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Cities in US such as Las Vegas that is famous for casinos, hotels, and gambling is witnessing a growing number of Esports arenas. Luxor Resort and Casino, which is one of the major casinos in Vegas has converted their night club to an Esports Arena and has named it as HyperX Esports Arena. The 30,000 sq. feet area is designed for hosting tournaments for major games including Fortnite, Overwatch, and PUBG. Philadelphia Fusion a US-based professional Overwatch Esports team has started constructing a $50 million Esports arena in South Philadelphia Sports Complex in March 2019. Apart from US, many Asian countries including China, South Korea, and Japan are also witnessing an increase in the number of Esports arenas. As of 2019, Japanese game publisher, Konami is currently in the process of building an Esports center in Tokyo. South Korea has been broadcasting Esports events since 2000 and has built a dedicated Esports stadium in 2005 in Yongsan district. Another major Esports arena in the country is Nexon Arena, which hosts events for mainly StarCraft II and League of Legends. China is taking huge strides in Esports market with a rapidly growing Esports viewers and growing number of professional gamers. China is one of the largest revenue generators in the global video game industry.

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Esports market is witnessing a growing number of audiences worldwide. This has led to an increasing number of Esports arenas. However, Esports is yet to reach mainstream in many developing countries, so there are a lot of untapped opportunities for the Esports vendors in the next 10 years with different revenue streams that are now being explored.

- Arjun Das
ICT - Research Analyst
Infoholic Research