E-sports, which are a form of video games competitions, are expected to grow at a fast rate in the coming years, powered by the raising popularity of e-sports and the increasing purchasing power of younger generations once they get older

1. Excellence in business
Axon Partners Group
Investment Division
E-sports Industry
March 2018

2. E-Sports Are Growing at a Fast Rate
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Sources: SuperData Research; Newzoo.
 E-sports, which are a form of video games competitions, are expected to grow at a fast rate in
the coming years, powered by the raising popularity of e-sports and the increasing purchasing
power of younger generations once they get older.
Global E-Sports Revenues
(in $m)
• Global e-sports revenues reached $655m in 2017 and are
expected to reach $1,65bn by 2021, growing at a 26%
CAGR 2017-22021E
• The growth rate is expected to be higher in the coming
years, powered by the raising popularity of e-sports and
the increasing purchasing power of younger generations
once they get older
$194
$325
$493
$655
$906
$1.187
$1.488
$1.650
2014 2015 2016 2017 2018E 2019E 2020E 2021E
E-Sports Audience by Region, 2016
• As of today, over 40% of the global e-sports audience is
formed by fans form Asia-Pacific, with China and South
Korea being the leading countries in this region
• At Axon, we believe that just as with any other
sport, people who play videogames usually enjoy
watching others playing videogames
• That is why the percentages showed above are similar to
percentages of global gamers in the World by region
North
America
19%
Europe 25%
Asia-Pacific
44%
Rest of
World 12%
256m

3. E-Sports Industry Stakeholders
 E-sports players have several ways to connect with fans, from directly streaming their games
through a streaming platform to selling merchandise.
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E-Sports
Team
Events &
Tournaments
Retail
Streaming
Platform
Fan 1
Fan 2
Fan 3
• E-sports players start playing video games by live streaming through streaming platforms on their own
• The best players receive offers to play in professional teams
• The teams are invited to events and tournaments that are watched by thousands or millions of fans, who could attend the
event or watch it through a streaming platform (1)
• The teams sell their merchandising through their own website or retail companies
• Partners and sponsors pay the team for wearing their gadgets or logos
1
2
3
4
5
Partners &
Sponsors
Online Games
1
2 3
4
5
(1) As an example, Gamergy, the largest event in Spain, was watched by
352k people, 32k of which attended the event in person.
Player 1
Player 2
Player 3

4. E-Sports Will Take Over Spain
 In 2017, 3,9m Spaniards watched e-sports, expending a total of $9,2m. Given the Spanish
market conditions, we believe the Spanish market has the perfect conditions to become one of
the largest markets in Europe in the coming years.
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Sources: World Bank; Statista; Newzoo; Hobbyconsolas.
• Spain is the 9th largest gaming market in the World,
with gaming revenues reaching $1,9bn in 2017
• Moreover, if we calculate gaming revenues as a
percentage of GDP, Spain turns out to be the second
largest market after UK
• In 2017, Spanish gamers spent an average of $79, one of
the highest rates after Germany ($118), France ($95) and
Netherlands ($81)
% GDP
4,4 4,2
3,0
1,9 1,9
1,5
0,6
Germany UK France Spain Italy Russia Netherlands
0,13%
Gaming Revenues by European Country, 2017
(in $bn)
0,17%
0,12%
0,15% 0,11%
0,10%
0,07%
% Gamers by Age in Spain
• With a total of 24,1m gamers, Spain has a strong gaming
culture, being the European country with the highest
percentage of gamers, 52% of the total population
• The ratio increases on young generations, with Spain
having one of the highest ratios in the World for people
between 11 and 14 years old
• As young generations get older, their purchasing
power and influence will increase, which could
potentially result on an astonishing growth of the
Spanish e-sports market
77%
79%
68%
53%
37%
22%
6-10
11-14
15-24
25-34
35-44
45-64
Over 50% of
the Spanish
population
below 35
plays
videogames

5. Excellence in business
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