According to a new report by Jon Peddie Research (JPR), a technology management consulting firm, the eSports Gaming Hardware market will reach $856 million in 2017. The firm predicts the market segment will grow significantly over the next few years years, with annual sales over $2.2 billion by 2020.
The general market for PC Gaming Hardware exceeded $30 billion in 2016 and is expected to grow approximately 6% through 2019, in contrast to the 42% expected of eSports-geared machines. The Asia Pacific Region is expected to be the leader in both growth and market size due to its entrenched PC gaming culture, large population, and a lack of significant console traction. APAC is expected to grow 7% through 2019. However, the West’s appetite for high-end PC gaming systems remains strong, with North America and Western Europe both individually leading Asia Pacific for High-End hardware, albeit at lower growth rates of 5.78% and 6.63% versus 9.61%, respectively.
“Much of the current eSports research focuses on advertising and event revenue as well as game sales influenced by eSports tournament creation or adoption,” said Ted Pollak, Senior Video Game Industry Analyst at JPR. “Often overlooked is the fact that eSports is increasing hardware revenue in multiple ways. The first and most important factor is that eSports is minting new customers. Their initial system and peripheral purchases often measure over a thousand dollars. Additionally, hardware marketing via team sponsorships are encouraging new and existing gamers to select better parts and accelerate upgrades and rebuilds which also enhances the market.”
“Our analysis not only measures eSports influence across hardware segments, but it drills down to pricing tiers within each segment and does this for all major geographic regions globally,” said Jon Peddie, President of JPR. “If one adds our data to even the most conservative advertising, software, and event revenue, the market has already breached $1.5 billion. eSports is about and for the gaming community, not just who’s selling ads, or running conferences.”