Analyzing the Exponential Growth of the ESports Industry
A recent analysis conducted by an NGO reveals that the ESports industry is experiencing exponential growth worldwide. This growth has led to the organization of numerous competitions and has highlighted the need for government support in terms of infrastructure development. Additionally, the education sector must focus on nurturing the necessary skills required for the industry, while the business sector must keep pace with demand by accelerating the development of games and software.
Unprecedented Growth in the Global and Thai ESports Markets
Mr. Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPA) at the Ministry of Trade, emphasizes the remarkable growth of the digital content industry. This industry has witnessed an exponential growth rate and has become a driving force for the economy, without any limitations. As of 2021, the global ESports market is valued at over $190 billion (approximately 6 trillion baht), with the smartphone gaming market playing a significant role. The evolution of smartphones has enabled game developers to focus their attention on creating games for this platform, catering to the growing demand. In Thailand alone, there are currently 9.8 million gamers, and this number is projected to increase by an average of 11.4% per year, reaching 18.7 million by 2027. The preference for smartphones as a gaming platform has soared by 67% compared to other electronic devices such as computers and game consoles.
The ESports market in Thailand is predicted to have a value of 37.6 billion baht by 2022, with an average annual growth rate of 20%. From its initial worth of 18.5 billion baht in 2018, the market has steadily expanded to 22 billion baht in 2020 and is expected to reach 27 billion baht in 2021, ultimately hitting 37.6 billion baht in 2022.
Factors Driving the Growth of the ESports Market in Thailand
The continued growth of the ESports market in Thailand can be attributed to several factors. Firstly, the increasing number of game streamers has garnered more interest in the gaming market, attracting new players and viewers. Secondly, ESports competitions conducted through digital media have allowed individuals to participate and spectate without being affected by the COVID-19 pandemic. Finally, game development companies are shifting their focus to ESports as these games have longer product life cycles compared to regular games. This trend has further propelled the expansion of the ESports market, leading to the establishment of new teaching and learning courses in this field.
Mr. Poonpong emphasizes the immense potential and business opportunities within the ESports market. The popularity of ESports among the younger generation, coupled with easier access to electronic devices, has created a vast support market. Various business sectors can participate in the market through different channels. This includes direct involvement through investments in infrastructure and facilities for ESports competitions, as well as indirect participation as sponsors. According to a survey by The Nielsen Fan Insights (2021), audiences can recall up to 65% of participating sponsored brands and services, with 63% remembering the brands of products or services advertised during ESports competitions more effectively than billboard advertisements. Visitors are also 55% more likely to purchase sponsored brands compared to competing brands of similar prices. Therefore, businesses can leverage sponsorship opportunities to enhance brand awareness, proving more effective than traditional advertising methods.
The Opportunity for Business Growth and New Careers in the ESports Industry
As the ESports market continues to thrive, it presents ample opportunities for businesses involved in the industry to grow. The large customer base within the ESports market provides a platform for various brands to attract consumers through different means such as content creation, advertising, and events. This growth has also fueled the emergence of side businesses, such as event organizers and marketing agencies specializing in ESports. Moreover, the ESports industry has paved the way for new careers as ESports coaches, game casters, and streamers. The increasing number of viewers and individuals considering a career in this field testifies to its growing prominence.
The Ministry of Commerce, on behalf of the government, has implemented policies and initiatives that support ESports through game sponsorship programs and international events like the Bangkok International Digital Content Festival. These platforms provide opportunities for businesses involved in digital content production, including game producers, animation studios, and related industries, to showcase their potential and establish connections with buyers and importers from around the world. Such initiatives embed Thailand’s culture, lifestyle, and economic activities through various media and digital content.
Proposed Measures to Drive ESports Growth
To further propel the ESports industry, the government should emphasize the improvement of digital technology infrastructure in alignment with the gaming and software industry. Additionally, there is a need to review and enhance relevant laws, rules, and regulations that facilitate the ESports market while discouraging inappropriate behavior and violence. Encouraging businesses to become sponsors of ESports tournaments is essential to sustain the industry’s growth. This includes both direct involvement by manufacturers of electronic devices, software developers, event organizers, and marketing agencies, as well as indirect participation from businesses in sectors such as food, fashion, and entertainment. The ability to reach a large audience through ESports marketing provides an excellent opportunity for businesses to promote their products and services.
The NGO analyzed the growth direction of the ESports industry and found that it tends to grow exponentially. After acceptance around the world More competitions have been organized, which suggests that the government formulates a policy to support infrastructure. The education sector must develop labor skills for the industry. And the business sector has to speed up the development of games and software to keep up with demand.
Mr Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPA), Ministry of Trade, revealed that the FTP has been monitoring the situation of the digital content industry and found it worth keeping an eye on due to the exponential growth rate. And it also applies technology to drive the economy without limits. In 2021, the global E-Sports market is worth more than $190,000 million, or about 6 trillion baht, with a supporting factor, the smartphone gaming market . has evolved until it can play games on par with other types of devices, making game developers turn their attention to developing games to be played on smartphones. To support the growth of such markets and meet more user needs, and in 2021 there are as many as 9.8 million gamers in Thailand and they are expected to increase by 11.4% per year on average to 18.7 million in 2027. From the behavior of using phones smartphones and playing games on smartphones which has increased by 67 percent compared to other electronic devices such as computers, game consoles.
In Thailand, it is also estimated that the E-Sports market in 2022 has a value of 37,600 million baht and an average growth of 20 percent per year. Originally worth 18,500 million baht in 2018, it has grown to 22,000 million baht in 2020 and it is worth 27,000 million baht in 2021 before reaching 37,600 million baht in 2022.
As for the reason why the E-Sports market in Thailand has continued to grow 1. The number of game streamers has increased, causing more people to be interested in the game market. More new players and viewers of ESports in the market 2. ESports competitions are competitions through digital media, which allow people to compete and watch without being affected by COVID-19 3. Game companies turn to more ESports businesses because their product life cycles are longer than normal games, leading to a wide expansion of the ESports market Opening more new teaching and learning courses in ESports
“It can be seen that the E-Sports market continues to grow every year. There is a large support market. and have a high business opportunity in the market because it is becoming popular with the new generation along with easier access to electronic devices In addition various business sectors can participate in the market through many channels. Either direct is joint investment in the infrastructure and various facilities for ESports competitions which may require high investment, and indirectly is the participation as a sponsor (Sponsor) in ESports competitions, as a result of The Nielsen Fan Insights (2021) survey of E-Sports viewership worldwide suggests that audiences can remember up to 65 percent of participating sponsored brands and services, and 63 percent remember the brands of products or services advertised through the competition are better than billboard ads Visitors are 55% more likely to shop for sponsored brands than competing brands with the same. price difference. Businesses can take advantage of sponsorship to create awareness of their products and services as an opportunity. Better than other methods of advertising,” said Mr Poonpong.
Mr Poonpong said the growth of the E-Sports market is also an opportunity for businesses involved in the industry to grow. Especially when it comes to promoting marketing from a large customer base in the ESports market. Making various brands involved in attracting people in a variety of ways, be it content, advertising media, and events, leading to side businesses growing together with, for example, a group of experts in organizing e-events Vent (Event Organizer ) or Marketing Agency (Marketing Agency) and also help create new careers in the industry as E-Sports Coach, Game Caster and Streamer. Gamers (Game Streamer) at the moment, the number of viewers And the number of people who have interest in pursuing a career in this field is increasing.
on behalf of the Ministry of Commerce There are policies and actions that contribute to supporting E-Sports through game sponsorship programmes. digital content And there is an international event to support the business of game producers, animation or other businesses related to digital content, the Bangkok International Digital Content Festival, which is an opportunity for companies doing business related to digital content show potential including meeting buyers and importers from around the world. Thailand’s lifestyle in terms of society and economy is also embedded through the creation of various media or digital content.
In terms of suggestions for driving E-Sports, the government should focus on improving infrastructure related to digital technology to be in line with the gaming and software industry, as well as reviewing and improving relevant laws, rules or regulations to facilitate the ESports market, but at the same time does not support inappropriate behavior and violence. Encouraging business groups to become sponsors of the tournament will play an important role in driving the sustainable growth of the ESports market. Both businesses directly involved in ESports such as manufacturers of electronic devices, software, event organizers and marketing agencies, as well as other businesses not directly involved such as food and drink businesses, fashion businesses and E-Sports competitions such as a. Promote marketing that can reach a large number of people as another channel. It is an opportunity for businesses to use this channel to promote their products and services.
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