It’s happening. The Canadian gaming industry is growing at breakneck speed despite the global health crisis. In recent years alone, its value is estimated to have increased by 30% and is expected to exceed $200 billion by 2023.
What’s more, investment in esports has also increased, driven by revenue diversification in the gaming sector. Add-ons, expansions, in-game purchases, and monthly subscription services have created multiple revenue streams for eSports companies and their investors. The growth of live streaming games and league tournaments is also a key factor in the growth of the esports market.
While the eSports industry in the US and Asia is among the largest in the world, the influence of Canadian eSports and eSports shares in these countries is closing the gap.
Are These Companies Ready to Benefit from the Boom?
According to the Canadian Entertainment Software Association (ESAC), 23 million Canadians were considered gamers in 2020, and the gaming industry accounted for $4.5 billion for the country’s gross domestic product in 2019.
ESAC also reported that between 2019 and 2020, 35 percent of adults and 29 percent of children and youth engaged in esports. Additionally, more and more Canadians are participating in esports as spectators, with 40% of gamers participating in game streaming.
As well, data from analytics and research firm Newzoo shows that global gaming revenue could exceed $200 billion by 2023.
Companies such as Engine Media Holdings (TSXV:GAME), Enthusiastic Games (TSX: EGLX), and Score Media and Gaming (TSX: SCR) may be ready to take advantage of all this.
What are the catalysts driving this market shift?
Forced isolation has led to an increase in interactive game quests. Because of this, the popularity of computer and mobile entertainment in Canada is at its peak. Plus, access to game content has never been easier: all you need is a smartphone, laptop or console and an internet connection.
The epidemic has not subsided, quarantine restrictions have been maintained in many countries and the demand for games still remains high. Every publisher and developer are trying to fill a niche created with quality content for gamers.
Smartphones to Replace Gaming Consoles?
The mobile entertainment sector has grown over the years, as the smartphone market has also grown rapidly. Mobile technology is becoming more and more powerful and smartphone applications are approaching the level of computers and consoles. Monetization of mobile games is also very profitable, which is why the development of such projects is very popular and the budget for their promotion is huge.
Mobile content is also advancing on all fronts. By 2021, games for smartphones and tablets will account for 52%+ of the market, which is nearly $79 billion. Games for consoles (Xbox, Sony PlayStation, Nintendo Switch) accounted for almost 28%, while the proportion of games for desktops and laptops fell to 20%.
Incentives to Play Abound
Currently the online gambling industry is experiencing one of the peak points of its development. It becomes very easy to find your favorite playing card and playing card platform or slot. The number of different casino bonus programs is also increasing. Canadian players can easily find casino listings with 100 free spins no deposit offers and increase their chances of success. The demand for online casinos is expected to continue to grow and this is natural considering the current world situation. In this way, online gambling will continue to contribute to the development of the Canadian gambling industry.
The increase in payment services goes hand in hand with the growing popularity of mobile games as consumers become more attracted to paid mobile content. It is now possible to make purchases with just one touch on the smartphone screen.
Pay to Play in Crypto
Cryptocurrencies have also experienced a boom in recent years. More and more platforms are accepting Bitcoin payments. This allows players to maintain their own anonymity while playing online.
In recent years, more and more Canadians are gaining access to high-speed Internet connections. Modern communication stations are installed even in remote mountainous areas. This has enabled millions of people to become confident online users.
Canada is Firing on All Cylinders
Not surprisingly, the online gaming industry is booming in Canada. And this is not the end of its development. Interest in online gaming has increased markedly as many people are looking for ways to spend time at home and communicate risk-free.
It has to be said that 5G will be the online gaming engine of the future. This technology will make internet connections faster and more accessible. Thanks to 5G, the number of Canadian users who prefer to play on their phones will increase significantly in a few years.