An overview of the German Esports market
Germany is the most populous country in the European Union and one of the richest in the world. The population is well educated and expanding. This, combined with the high use of technology and the Internet, means that Esports and gaming tend to have plenty of opportunities in Germany.
In fact, Germany is one of the largest and most important (source) markets for games and hardware. According to Newzo, the German gaming market is 4.1 billion. Worth the dollar, making it the fifth largest in the world and the largest in the European Union. Half of that amount comes from the console segment, where mobile games account for $ 900 million. The share of PC games is slightly higher, at 1.1 billion. Revenue is estimated to grow by an average of 2–4 percent per year.
At least 88 percent of the population are Internet users – exactly 72.4 million. Of those 72 million, about 37 million are players, and 20 million spend the money on gambling. These are huge markets with an average consumption of $ 192 per. Year per Player. Of these 20 million, approximately 3.5 million can be considered Esports enthusiasts, meaning they attended or watched the Esports event. About 20 percent of the online population knows Esports. Tablet recording has been moderate, with most gamers spending time in front of a computer, smartphone screen, or television.
Oddly enough, almost half of all German players are women (47 percent) and the average player is 35 years old (source). The German Gaming Association says the average German player is 35 years old.
In terms of console popularity, the most popular is the PlayStation 4, which sold about 1.3 million units in 2015. The console market dominates total gaming revenue, with half of total revenue ($ 2 billion) coming from console sales, while PC and mobile devices each account for about a quarter ($ 1 billion). of the total amount. Most games still take place on computers (about half).
In terms of the popularity of Esport itself, the market is expected to grow at a CAGR of 27%. Deloitte estimates that the export market is currently around € 70 million ($ 76 million) and is expected to grow to € 130 million by 2020. This includes advertising, sponsorship, merchandise, premium content and free entry fees.
Newzo’s data also show that the ratio of paying to non-paying players is the most favorable in the world. About 70 per cent of all players pay for games, which is 5 per cent more than in China and 8 per cent more than in the UK. In Esport betting, it is smaller than the UK market, mainly due to the huge popularity of betting in the UK (and Australia). At present, the lack of regulation is very attractive, because the agreement between the German states had in fact collapsed and allowed unregulated access to the German market.
pay for games
Germany is also home to several video game studios producing AAA titles, as well as budget and market niches. In Germany, more than 500 companies are involved in game development and marketing – including Crytek, InnoGames, Gameforge and Deep Silver.
Germany also hosts many important international competitions that attract millions of spectators. An example is the ESL One Dota 2 tournament, which hosts ESL, which is itself a German company. Founded at the beginning of the new millennium, ESL is one of the oldest esport leagues. It currently has about 6 million active players and 500,000 clans.
In addition, Cologne is home to Gamescom, the world’s largest video game fair, with hundreds of exhibitors and more than 300,000 visitors a year. Some ESL events have also been organized (ESL Cologne, CS: GO tournament with 22,000 spectators). Riot Games, behind the League of Legends, has opened an office in Berlin to host the European Championships there.
Overall, the German Esports market offers plenty of growth opportunities. Segments with particularly strong growth potential include VR games and Esports betting. German game development companies are very interested in VR, and this is supported by the fact that one third of all Internet users plan to use such a device in the future. Several companies are currently active, including Crytek, which has several titles already developed. A lot of opportunities are expected in Esports betting, where the major player Unikrn also offers its betting services in Germany.