Global esports revenues will surpass $1 billion in 2020 for the first time — without counting broadcasting platform revenues, according to market researcher Newzoo.

China is the largest market by revenues, with total revenues of $385.1 million in 2020, followed by North America, with total revenues of $252.8 million. Newzoo noted that it has re-evaluated the size of the esports market, based on improved methodologies. Some media have been critical of Newzoo’s hype around esports in the past.

Globally, the total esports audience will grow to 495.0 million people in 2020, Newzoo said. Esports Enthusiasts (people who watch more than once a month) make up 222.9 million of this number.

In 2020, $822.4 million in revenues—or three-quarters of the total market—will come from media rights and sponsorship.

In the coming year, the global esports economy will generate revenues of $1.1 billion, a year-on-year growth of 15.7%. Most of these revenues (74.8%) will come from sponsorships and media rights, which will total $822.4 million, a 17.2% increase from last year.

Consumer spending on tickets and merchandise will total $121.7 million, while another $116.3 million will come from game publishers’ investments into the esports space, via supporting tournaments through partnerships or as white-label projects with professional tournament organizers.

Newzoo also said the global esports audience will reach 495.0 million this year, made up of 222.9 million Esports Enthusiasts and a further 272.2 million Occasional Viewers. In 2020, the average revenue per Esports Enthusiast will be $4.94, up 2.8% from 2019.

“As the esports market matures, new monetization methods will be implemented and improved upon,” said Remer Rietkerk, head of esports at Newzoo, in the report. “Likewise, the number of local events, leagues, and media rights deals will increase; therefore, we anticipate the average revenue per fan to grow to $5.27 by 2023.”