Sports Analytics Market

Market Overview

The global sports analytics market size was valued at USD 3.19 billion in 2022. It is estimated to reach USD 16.45 billion by 2031, growing at a CAGR of 20.02% during the forecast period (2023–2031). The expansion of the global sports analytics market is boosted by the growing demand for real-time data access and increasing demand for predictive insights into fan preferences. In the coming years, the increasing significance of on-field data for analyzing team performance, monitoring injuries, tracking individual players, and optimizing the training curriculum of individual players is anticipated to drive the demand for sports analytics solutions.

"Sports analytics" refers to analyzing sports data, including player performance, business operations, and recruitment. It consists of both on-field and off-field analytics, including player and team analysis, health assessment, video analysis, supporter engagement, and ticket pricing. Participating in a competition benefits individual athletes, teams, and sports businesses. It contributes to the expansion of athletes' fan bases, the improvement of merchandise sales, and the acquisition of sponsorships.

Sports analytics aids in evaluating athletes' performance, encourages improved decision-making, and lowers operating costs. It improves in-game strategies, provides nutrition plans, and boosts performance. It also identifies a player with a greater risk of injury, enables the fitness staff to balance the overall exertion levels, and enrolls the player in conditioning programs. As a result, sports analytics is utilized globally in numerous sports, including football, hockey, cricket, and basketball.

Market Dynamics

Global Market Drivers

Growing Demand for Real-time Data Access

Consumers are spending a greater proportion of their spending online than ever before, and real-time data access has become the most important aspect of building a business. With advancements in technology and artificial intelligence, real-time data has emerged as a crucial factor for customer acquisition, one of the most essential aspects of any organization. Real-time data is required to make smart business decisions.

Additionally, major league sports analytics has grown tremendously in the last decade. This is due to the rapidly surging popularity of various sports, particularly team sports, and the development of tracking devices; currently, more data has become available. Therefore, the growing demand for real-time data access will drive the market's growth during the study period.

Increasing Demand for Predictive Insights into Fan Preferences

Fans are regarded as genuine brand partners for sports; therefore, there has been an increase in the demand for predictive insights into fan preferences by many organizations operating in sports and related industries to enhance fan experiences and better serve them. For example, IBM has worked with the Atlanta Falcons to provide a personalized game-day experience for their fans via mobile, combining analytics, cloud technology, social, and security.

Additionally, predictive models that can compute probabilities of sports win/loss prospects and analyze player performance have been designed to advance the field of predictive analytics. Many sports organizations attempt to anticipate fan desires and demands via team-specific mobile applications offering exclusive content and in-seat concession ordering. Sports media firms can now produce more detailed material at scale and conveniently provide it to fans. Thus, the increasing demand for predictive insights into fan preferences is expected to drive the growth of the global sports analytics market during the forecast period.

Global Market Restraint

Lack of Awareness About Technology in Sports

Introducing new sports technologies such as AI and ML has dramatically altered the sport and exercise science landscape. The impact of technology on people's worldviews has been profound. Technology has been used in sports for many years, including research activities, improved learning and coaching, and biomechanical analysis. It has become increasingly important, particularly in professional sports. Technology is also a significant aspect of modern sports, with some sports, such as motorsport, requiring it and others using it to boost performance. Thus, the lack of awareness about the advantages of using advanced technology in sports applications is anticipated to hinder market expansion.

Global Market Opportunities

Availability of Cost- Effective and High- End Computing Solutions

Sports organizations have been using HPC technology on and off the field, making it possible to analyze huge amounts of data in a single platform to make suitable decisions and changes. The solutions help track a player's performance and identify the areas where their activity needs improvement. Technological developments are expected to shape the future of the sports industry as the accelerated digital revolution provides more possibilities for the sports sector.

Moreover, digital platforms make it feasible to produce customized content and cultivate meaningful relationships with developers, real-time and static statistics, and geolocation applications to enhance the in-stage experience. Rapid technological advancements are essential to a sports organization's ability to win games, train players and coaches, run its business, and draw in, service, and keep fans. The rapid digital innovation resulting in the availability of cost-effective and high-end computing solutions is expected to present lucrative growth opportunities for vendors operating in the global market.

Regional Analysis

Based on region, the global sports analytics market is bifurcated into North America, Europe, Asia-Pacific, and the Rest of the World.

North America Dominates the Global Market

North America is the most significant global market shareholder and is anticipated to exhibit a CAGR of 18.9% during the forecast period. The regional market in sports analytics is expected to grow significantly as the demand for agile, scalable, and cost-effective computing is high. The market development in the region can be attributed to increasing urbanization, advances in digital technology, and higher disposable income. The region includes nations like the US, Canada, and Mexico. The US is anticipated to be the dominating country in the regional market due to its developed economy. In addition, the US has a greater concentration of companies than Canada and Mexico, so the country's high-end computing solutions are higher. The rising popularity of sports among the young population positively impacts societal integration and economic development. The growing popularity has led to the rapid growth of the sports industry, which has consequently increased the demand for the analysis of the players and their performances.

Europe is estimated to exhibit a CAGR of 20.3% over the forecast period. The global market in Europe is expected to witness significant expansion due to many developed countries' willingness to adopt new technologies. In the European sports analytics market, Germany is expected to dominate the sports analytics market in this region. The market growth in Germany is driven by the growing demand for sports activities, presenting exciting investment opportunities for key players. Similarly, the UK is projected to witness significant expansion over the forecast period because of increasing investment in sports technology for data-driven decisions. Enterprises across various industry verticals in the country are adopting sports analytics to adhere to stringent government regulations and quality standards.

In the Asia-Pacific region, the increasing preference of team managers and coaches to employ real-time data to formulate gaming strategies and coordinate training sessions is an essential factor that predicts the growth of sports analytics solutions. The leading global market companies based in the United States and the United Kingdom are expanding their operations in Asia-Pacific. In addition, government initiatives towards digitization and booming digital platforms are the factors in developing countries' regional markets. With a population of over 1.7 billion, China is the world's most lucrative legal sports analytics market. The country accounted for the largest market share in the region due to surging demand for sports analytics solutions and the growth of cloud infrastructure, such as the construction of data centers. With the rise of Internet penetration and digitization, the demand for analytics for complex data streaming has seen notable growth, thereby driving the growth of the Chinese sports analytics market.

The Rest of the World sports analytics market is expected to grow dynamically. The popularity of sports activities is growing in several countries of the region. The regional market's growth is largely attributed to the greater sports-wide adoption of analytics in this region. The region comprises the Middle East and Africa and South America. South America accounts for a significant share of the regional market. Countries such as Brazil, Peru, Chile, and Argentina are exhibiting a rise in adopting cloud-based solutions. Many businesses are adopting cloud solutions as they enable cost-saving and offer higher returns on investment, which boosts the growth of the South American sports analytics market.

Segmental Analysis

The global sports analytics market is segmented by sport, type, component, deployment model, and application. 

Based on sport, the global market is bifurcated into football, cricket, baseball, basketball, rugby, and others. 

The football segment dominates the global market and is projected to exhibit a CAGR of 17.7% over the forecast period. The enormous popularity of football across the world, particularly in European nations such as Germany, Spain, and the United Kingdom, can be attributed to the increased use of sports analytics. Leading football leagues, such as the UEFA Champions Leagues, the Premier League, and the Bundesliga, rely heavily on analytical data to determine their player lineups and game plans. In football, analytics can acquire precise insights about player performance, acceleration, passing patterns, and the number of touchdown passes. Football clubs continue to be interested in investing in this field to acquire a competitive advantage in the game, fueling the global market growth.

Based on type, the global market is segmented into on-field and off-field. 

The on-field segment owns the highest sports analytics market share and is estimated to exhibit a CAGR of 18.5% during the forecast period. In a sports setting, analytics has various on-field uses, including managing individual and collective performance. On-field analytics is concerned with increasing the performance of teams and players on the field. It delves into details like game strategies and player conditioning. Coaches may also utilize data to design dietary recommendations for their athletes and enhance their training regimes. In addition, analytics is frequently employed in developing tactics and team plans. With hundreds of games worth of data to examine, analysts may search for trends in formation, counter-tactics, and other relevant characteristics over a large sample size.

Based on components, the global sports analytics market is divided into solutions and services. 

The solutions segment is the most significant contributor to the market and is predicted to exhibit a CAGR of 19.02% over the forecast period. Sports analytics systems provide various solutions for creating analytical data, including real-time predictive analysis, pre/post-game analysis, data visualization, and motion/video analysis. Customized analytics solutions are also available from vendors based on the changing demands of teams and individual athletes. The solutions area has been completely revolutionized by advances in Virtual Reality/Augmented Reality (VR/AR), 2D/3D imaging, biometrics, video-based sensing, and Big Data analytics. Motion analysis, player tracking, and video analysis solutions utilize these technologies efficiently.

Based on the deployment model, the global market is divided into on-premises and cloud. 

The cloud segment is the most significant revenue contributor and is expected to exhibit a CAGR of 20.7% over the forecast period. Most sports analytics providers offer cloud-based solutions to help businesses maximize profitability and successfully automate equipment maintenance processes. By delivering safe and long-term data, the cloud deployment approach aids clubs and organizations in digitalizing sports performance. The growing demand for organized and visualized data will drive demand for cloud-based deployment models. The cloud sector provides advantages such as scalability and cost-effectiveness, privacy, data quality, and data integrity, which will likely contribute to the overall market's growth.

Based on application, the global market is divided into performance tracking and analysis, health assessment and injury prediction, fan engagement and digital experience analysis, event ticket pricing and merchandise sales, player scouting and valuation, and others. 

The performance tracking and analysis segment accounts for a large sports analytics market share and is expected to grow at a CAGR of 20.4% throughout the forecast period. Performance analysis evaluates a sport's performance to generate knowledge of activities that can influence decision-making, improve performance, and assist coaches and players in achieving their goals. This would include tactical evaluation, movement analysis, video and statistical databasing and modeling, and coach and player data displays in numerous team sports.

Video and data are commonly used in performance analysis. Coaches that use video and analytics to explain to their players what they did wrong or how they might improve in post-match remarks are becoming increasingly frequent. In the end, demonstrating objective facts is the most efficient and effective way to make a point.

Recent Developments

• March 2023- Rithmm, an innovative predictive-analytics sports betting application, announced its release and general availability for installation on the Apple App Store and Google Play. It was a finalist in the prestigious MIT Sloan Sports Analytics Conference startup competition, enabling users to make wiser, more intuitive wagers.
• March 2023- Cipher Sports Technology Group announced the launch of Convertr, an analytics and data-matching platform for sports wagering customers.