|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
44.8 Billion
|
|
CAGR
(2023-2028)
|
18.9
%
|
|
Fastest
Growing Segment
|
Sports Clubs
|
|
Largest
Market
|
North
America
|
Market Overview
Global
Sports Sport Market was valued at USD 44.8 Billion in 2022 and is anticipated
to project robust growth in the forecast period with a CAGR of 18.9 %through
2028. The growth can be attributed to the increasing
need for technology-based services in the sports arena driven by a strong
emphasis on the involvement of audience and entertainment activities and the
digital transformation of arenas/stadiums. The sports technology market has
witnessed developments in recent times owing to increased investments by
numerous organizations in adopting the latest technologies for tracking
players' performance and engaging fans. For instance, in February 2023, STATS
LLC extended its collaboration with United Soccer League. Through this
initiative, the company is offering Opta services to fan-facing platforms,
on-field performance, and broadcasting tools of USL. The market growth is also influenced by
the adoption of artificial intelligence, which helps in keeping track of
players' health, fitness, and safety. An AI integrated into wearable devices
such as watches and heart rate monitors to track the players' whereabouts off
the field and ensure player safety during workouts. For instance, in the
National Association for Stock Car Auto Racing, LLC (NASCAR), deep learning is
used for recognizing the patterns in data and can be used in several commercial
applications ranging from voice recognition to computer vision.
Key Market Drivers
Market
CAGR for sports technology is being driven by the rising adoption of emerging
technologies. The rising adoption of the latest appearing technologies with
data analytics, artificial intelligence (AI), and machine learning (ML)
throughout the different sporting leagues and events is anticipated to fuel the
sports technology market. The digital transformation of sports arenas for team
management viewership engagement demands technology-driven decision-making in
sports. The rising number of sports leagues across the globe is creating more
chances for infrastructural development and the adoption of advanced technology
services.
The
sports technology market is experiencing a transition due to the increasing
investments by numerous players in adopting cutting-edge technologies for
monitoring the health of players and stats performance when engaging viewers.
The sports technology market is growing due to the growing investment in ticket
sales, event marketing, and operations. The effective monitoring of sports by
their management teams is enhanced with the digitization and adoption of AI.
The new and improved technologies adopted by the professional-level sports
leagues include smart stadiums, data analytics, and performance-tracking
wearables. The emerging technologies and analytical tools are adopted by the
league team owners to improve the performance of the players and increase viable
business opportunities. There are various benefits, like profitability for
organizers, investors, and team owners, due to the transformation into a
franchise model.The sports event organizers investing in digital technologies
have resulted in the creation of unforgettable game-viewing experiences on
digital devices and in the stadiums. Technologies such as high-density Wi-Fi,
location-based service, digital kiosks, 360-degree ultra-high-definition
cameras, and digital signage are being mounted and instrumented by the stadium
owners to improve the spectator experience in the stadiums.
AR
and VR are being included in different stadiums to improve the experience for
fans and players, increase interactive advertising, improve sports
broadcasting, etc. Thus, driving the Sports Technology market revenue. There
are multiple software, hardware, and network elements that are integrated by
the sports technologies and can be complex to configure sometimes. Furthermore,
these systems are not able to integrate with new-generation smart devices
because of protocol issues. Hence outdated and traditional systems are not
capable of communicating efficiently with technologically advanced systems.
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Key Market Challenges
The
global sports market is a multibillion-dollar industry that impacts people's
lives on various levels. It encompasses a wide array of sports, each with its
own set of fans, athletes, and institutions. Some of the most popular sports in
the world include soccer, basketball, cricket, and tennis, which have fan bases
that transcend national borders. Additionally, there is a growing interest in
emerging sports like esports, which involve competitive video gaming, and niche
sports like ultimate frisbee and parkour.
At
the professional level, sports leagues and teams are major players in the
global sports market. For example, the National Football League (NFL) in the
United States, the English Premier League in soccer, and the National
Basketball Association (NBA) are among the most prominent and financially
successful sports organizations. These leagues generate revenue from ticket
sales, broadcasting rights, merchandise, and sponsorships, making them economic
powerhouses.
Moreover,
the sports market encompasses a vast ecosystem of ancillary industries.
Sportswear and equipment manufacturers, like Nike and Adidas, profit from
athletes and teams promoting their products. The sports media industry,
including television networks and digital platforms, broadcasts games and
related content, attracting advertisers and subscribers. Additionally, the
construction and maintenance of sports facilities, from stadiums to golf
courses, contribute to the market's economic vitality.
Challenges
Facing the Global Sports Market
The
global sports market faces numerous challenges that can be grouped into several
categories, including economic, social, and technological challenges.
Economic
Challenges:
Financial
Sustainability: Maintaining the financial health of sports organizations can be
challenging. Player salaries, stadium maintenance, and operating costs can
strain budgets, especially for smaller teams or in less popular sports.
Revenue
Inequality: In many sports, there is a significant revenue gap between the
top-tier organizations and smaller ones. This imbalance can hinder
competitiveness and limit the growth potential of less affluent teams.
Fan
Engagement: While sports remain a significant part of popular culture,
attracting and retaining fans in the digital age can be difficult. Changing
consumer behaviors and entertainment options make it challenging for sports to
maintain their viewership.
Social
Challenges:
Inclusivity
and Diversity: The sports industry is under scrutiny for its lack of diversity
and inclusion. Addressing issues of race, gender, and other forms of
discrimination is essential to promoting a more equitable and welcoming sports
environment.
Health
and Safety: Concerns about the physical and mental health of athletes are
growing. Concussions, injuries, and the long-term effects of competitive sports
are subjects of intense debate and regulation.
Sportsmanship
and Fair Play: The integrity of sports is at risk from issues like doping,
match-fixing, and unsportsmanlike conduct. Ensuring fair competition is an
ongoing challenge.
Technological
Challenges:
Media
Landscape: The way people consume sports is evolving rapidly. Traditional
broadcast models are being disrupted by streaming services and digital
platforms. The challenge is to adapt to these changes and monetize new forms of
distribution effectively.
Data
and Analytics: The sports industry is increasingly reliant on data and
analytics for performance improvement, injury prevention, and fan engagement.
Managing and securing this data presents both opportunities and challenges.
Esports
Growth: The rise of esports has presented both a challenge and an opportunity
for traditional sports. Esports have gained a significant following, and sports
organizations need to decide how to engage with this new form of competition.
The
Future of the Global Sports Market
Despite
these challenges, the global sports market holds considerable potential for
growth and innovation. Here are some key considerations for the future of the
industry:
Digital
Transformation: Embracing digital technology and data analytics will be crucial
for the future of sports. It enables better fan engagement, player performance
improvement, and the development of new revenue streams.
Inclusivity
and Diversity: Addressing social challenges is essential to maintaining and
expanding the fan base. Promoting diversity, equality, and inclusivity can
attract new audiences and players.
Health
and Safety: The industry should continue to prioritize athlete safety. This
includes research into injury prevention, mental health support, and minimizing
the long-term health risks of high-impact sports. Sports organizations can tap
into the global market by expanding their reach and seeking new fans and
revenue streams outside their traditional markets.
Sustainability:
Many sports organizations are beginning to address their environmental impact,
considering sustainable practices in stadium construction, transportation, and
waste management. Fan
Engagement: The industry should continue to invest in innovative ways to engage
fans, such as virtual reality experiences, interactive apps, and personalized
content.
In
conclusion, the global sports market is a multifaceted and ever-evolving
industry that faces a range of challenges across economic, social, and
technological dimensions. These challenges are balanced by significant
opportunities for growth and innovation, including digital transformation,
inclusivity, and sustainability. As the industry adapts to changing consumer
behaviors and technological advancements, it has the potential to continue
captivating and uniting audiences around the world, making sports a powerful
force in global culture and economics.
Key Market Trends
Global
Sports Market Is a Multibillion-Dollar Industry
The
global sports market is a multibillion-dollar industry that impacts people's
lives on various levels. It encompasses a wide array of sports, each with its
own set of fans, athletes, and institutions. Some of the most popular sports in
the world include soccer, basketball, cricket, and tennis, which have fan bases
that transcend national borders. Additionally, there is a growing interest in
emerging sports like esports, which involve competitive video gaming, and niche
sports like ultimate frisbee and parkour.
At
the professional level, sports leagues and teams are major players in the
global sports market. For example, the National Football League (NFL) in the
United States, the English Premier League in soccer, and the National
Basketball Association (NBA) are among the most prominent and financially
successful sports organizations. These leagues generate revenue from ticket
sales, broadcasting rights, merchandise, and sponsorships, making them economic
powerhouses.
Moreover,
the sports market encompasses a vast ecosystem of ancillary industries.
Sportswear and equipment manufacturers, like Nike and Adidas, profit from
athletes and teams promoting their products. The sports media industry,
including television networks and digital platforms, broadcasts games and
related content, attracting advertisers and subscribers. Additionally, the
construction and maintenance of sports facilities, from stadiums to golf
courses, contribute to the market's economic vitality.
Segmental Insights
End User Insights
The sports leagues segment
captured a revenue share of over 45% in 2022 owing to an increased usage of
technological solutions in the popular leagues to facilitate accurate
decision-making and improved fan experience. For instance, some of the popular
technologies used in soccer are Video Assistant Referee, goal-line technology,
and semi-automated offside technology among others.
The semi-automated offside
technology was employed in soccer for the first time during the FIFA World Cup
2022 in Qatar. This technology tracks the data points related to the ball and
the players obtained from the cameras fixed around the field at 50 times per
second, which helps the analyst team and the management to generate insights
from the game. This, in turn, is expected to drive the demand for the sports
leagues segment over the forecast period.
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Regional Insights
North America is home to some of the world's
most prominent and lucrative professional sports leagues. The National Football
League (NFL), Major League Baseball (MLB), the National Basketball Association
(NBA), and the National Hockey League (NHL) are prime examples. These leagues
have massive fan bases, attract significant television viewership, and generate
substantial revenue through ticket sales, broadcasting rights, merchandise, and
sponsorships. They set the standard for professional sports organizations
worldwide. Sports hold immense cultural significance in North America.
Events like the Super Bowl, the World Series, and the NBA Finals are not just
sporting competitions but also cultural phenomena. They bring people together,
generate excitement, and become important parts of the national and regional
identities. The cultural importance of sports in North America contributes to
their domination on a global scale.
Recent Developments
In September 2023, St. Louis CITY SC, a
soccer club based in St. Louis, Missouri, collaborated with Cisco Systems, Inc.
The partnership has enabled the club to leverage digital signage, Wi-Fi,
security, and networking solutions to offer an immersive matchday experience to
its fans.
May 2022: Infosys Limited is a global company
that offers next-generation digital services and consulting, and French Tennis
Federation (FFT) launched its recent development that will help in a new era of
technology-driven sports viewing and fan engagement.
Jul 2023: OPPO Technologies announced that it
will continue to empower global fans to immerse themselves in the excitement of
sports using its technology and innovation. OPPO aims to bring more passion and
inspiration to sports with its world-leading smart devices and technologies
while allowing global fans to capture, enjoy, and share moments from their
favorite sports.This year marks the 5th consecutive year of OPPO's partnerships
with Wimbledon and Roland-Garros, bringing the powerful connection between technology
and tennis. OPPO has been using its professional imaging technologies to
capture inspiring moments from the tournaments and bring them to tennis fans
worldwide.
Jul 2023: Solid-state Electronics, a
technology company, announced that it is set to redefine the future of e-sports
technology to meet the growing demand for advanced technology to enhance gaming
experiences. Integrating solid-state electronics into gaming devices promises
to revolutionize the e-sports industry, offering unprecedented gaming
experiences and setting new standards for competitive gaming.
Key Market Players
- Fitbit LLC
- IBM
- Telefonaktiebolaget LM Ericsson
- Cisco Systems, Inc
- FUJITSU
- SAP SE
- Oracle
- LG Electronics.
|
By Type
|
By Sport
|
By End User
|
By
Region
|
- Devices
- Smart
Venues
- Analytics
& Statistics
- Esports
|
- Soccer
- Baseball
- Basketball
- Ice
Hockey
- American
Football/Rugby Others
|
- Sports
Clubs
- Sports
Associations
- Sports
Leagues
|
- North
America
- Europe
- South America
- Middle
East & Africa
- Asia
Pacific
|
|
Report Scope:
In this report, the Global Sports Sport Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Global
Sports Sport Market, By Type:
o
Devices
o
Smart
Venues
o
Analytics
& Statistics
o
Esports
- Global
Sports Sport Market, By Sport:
o Soccer
o Baseball
o Basketball
o Ice Hockey
o American Football/Rugby Others
- Global Sports Sport Market, By End User:
o Sports Clubs
o Sports Associations
o Sports Leagues
- Global Sports Sport Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Global Sports
Sport Market.
Available Customizations:
Global Sports Sport Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Sports Sport Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]