|
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 Technology 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 Technology Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Global Sports Technology Market, By Type:
o Devices
o Smart Venues
o Analytics & Statistics
o
Esports
·
Global Sports Technology Market, By
Sport:
o Soccer
o Baseball
o Basketball
o Ice Hockey
o
American
Football/Rugby Others
·
Global Sports Technology Market, By End User:
o Sports Clubs
o Sports Associations
o Sports Leagues
·
Global Sports Technology 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 Technology Market.
Available Customizations:
Global Sports Technology 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 Technology 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]