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Sigmaintell Research: Market Analysis of Internet Cafes and E-sports Displays

Affected by the economic environment and the cutting of excessive industrial capacity, the home and commercial display market in mainland China is facing a downturn in demand, according to Sigmaintell Research. However, eSports display shipments continued to grow year-on-year. The main reasons for this are the impact of the electricity industry and the continuous improvement of the ecological environment of internet cafes.

According to the data, sell-in during the first quarter increased by 5.8 times compared to the same period last year. The mid-year sales promotion of the CE business will also promote the sell-in of eSports displays. In April, eSports displays shipped around 90,000 units, an increase of 6.5 times compared to the same period last year.

Source: Sigmaintell Research

On May 14th, the OCA officially announced six e-sports games have been selected for the eighteenth Indonesia Jakarta Asian Games. At the Hangzhou Asian Games, due to take place in four years’ time, eSports is expected to become a formal event. As a new sport, it has been gradually accepted by all sectors of society. The eSports industry has become a global capital investment trend. As the most populous country, more than 300 million of the world’s eSports players live in China. In the future, it will develop into the largest competitive market.

According to Sigmaintell’s data, during the third quarter of 2017, the overall operation of internet cafes rose steadily. Internet bar revenue and attendance rates maintained an upward trend during the first quarter of this year and the upgrading of hardware has been carried out, continuously. The increase in operating income and the reduction of display prices are driving the owners of internet cafes to actively upgrade eSports displays.

Mainland Esports Display Market 2 procSource: Sigmaintell Research

With the continuous development of the Chinese eSports market, manufacturers of peripheral hardware are vigorously exploring its potential. ESports display factories have begun to launch in China, while Taiwan’s Asus has greatly increased its share in the display market by investing in competition games and related teams.

In the second quarter of 2018, the market will carry out price adjustments to stimulate the purchasing power of consumers and internet cafes. According to Sigmaintell, sell-in numbers of e-sports displays in mainland China in the second quarter of 2018 are expected to reach 280 thousand, with the trend of steady growth maintained.