Sports Technology Market

Market Overview

The global sports technology market size was valued at USD 15.89 billion in 2022. It is estimated to reach USD 63.30 billion by 2031, growing at a CAGR of 16.62% during the forecast period (2023–2031). The global sports technology market is primarily driven by the surging number of sports leagues and upcoming national and international sports events across the globe. The coupling of technology and sports empowers a data-driven sports culture and drives the next generation of viewing, fitness tracking, and stadium experience.

Sporting technologies are, by definition, man-made techniques created to further human interests or objectives about a specific sport. Sports technology combines measurement and analysis, engineering science, and sports science to link the performance characteristics of sporting equipment to product design principles. It facilitates this by providing up-to-date knowledge of manufacturing processes and materials, enhancing sporting goods' performance and usability.

The utilization of instant replay and other technical assistance has been a longstanding practice in the realm of professional sports, serving as a means to help referees ensure accurate decision-making. Video replay systems have been used to review referee decisions in gridiron for decades. Athletes use technology in sports as a technical way to improve their training and competing environments to increase their overall athletic performance.

Market Dynamics

Global Sports Technology Market Drivers

Increasing Number of Sports Events

Over the past few years, the sports industry has witnessed significant growth due to rapid urbanization, the growing popularity of Esports, increased sports sponsorship, the emergence of multiple sports channels, and economic growth. The coupling of technology and sports empowers a data-driven sports culture and drives the next generation of viewing and the stadium experience. Countries such as India, China, Australia, Singapore, and Japan are building new stadiums and renovating the existing ones in the wake of increasing sports events in the region.

Moreover, Esport's growth has spurred the use of technology in the sports arena. The Esports industry has grown from small tournaments in gaming cafes to international tournaments with increased viewership and centralized gaming teams. The North American League of Legends Championship Series and two new Esports leagues—the NBA 2K League and the Overmatch League—were introduced by video game producers in 2018. The Esports industry is growing phenomenally in the U.S., South Korea, China, and other European countries, thereby driving the global market.

Growing Demand for Data-Driven Decisions and Operations

The rise of technological advancement in sports has made the industry incredibly data-driven over the past few years. The GPS technology, connected stadiums, and wearable deployments have given rise to vast amounts of data across the sports arena. GPS technology has been used in sports for quite a while, during competitions and training sessions. The Electronic Performance and Tracking System (EPTS) devices help track players on the pitch and gather vast amounts of data based on their performance, such as distance run, running speed, position on the pitch, and body conditions.

Furthermore, connected stadium technologies have evolved rapidly so that fans get connected to information while watching live sports events. Wearable sports technology has also helped sports professionals improve their team's performance and save their players from injury and illness. For instance, athletes use OptimEye, a device by Catapult Sports that tracks athletes' vitals accurately and allows coaches to monitor vitals in real time. The demand for the above technologies and the need to analyze vast data is driving the sports technology market growth.

Global Sports Technology Market Restraints

High Initial Investment and Longer Wait for Return on Investment

Sports technology has flourished in the past few years – from improving athlete performance to broadcasting technologies. The infrastructure layer of smart stadiums consists of physical hardware, operational software, and networking equipment, the installation and maintenance of which require a substantial investment.

Besides, the smart stadiums must be constructed in line with the stringent security regulations for the public executed by the sports authority, which upturns stadium construction costs. Moreover, the proprietor of the stadium needs to endure an extended period before recouping their initial investment. Hence, the stadium owners are unwilling to invest significantly at the early stage of stadium construction. This is anticipated to hamper the market's growth over the forecast period.

Global Sports Technology Market Opportunities

Rising Number of Events with Large Prize Pools and Growing Number of Sports Leagues

The rising sports events and franchise model transforms the sports industry into a commercial platform. The winning teams earn millions of prizes, with popular players drawing a significant salary. The prizemoney in Esports tournaments is comparatively more than in some popular sports competitions. The Dota 2 global championship Esports competition held in 2018 boasted a substantial prize pool of up to USD 25.5 million, with the victorious team securing a noteworthy sum of USD 11.2 million as their prize money. The F1 Esports tournament experienced a significant increase in prize money for the 2018-19 edition.

Furthermore, the franchise model transformed the sports industry by providing numerous benefits to players, fans, organizers, and investors. The growing franchise model allows investors to buy teams with territorial rights. A franchise can establish revenue-sharing models among games, events, merchandising, and players. As a result, the league franchise model creates an expectation of longevity and broadens revenue opportunities. Thus, growing price pools and increasing franchise models are expected to provide ample opportunity to gaming companies and players, thereby triggering the growth of the sports technology market.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global sports technology market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe is the most significant global sports technology market shareholder and is predicted to exhibit a CAGR of 16.3% during the forecast period. Europe is predicted to hold a prominent market share of smart stadiums owing to more than 1,200 stadiums. Digitalization and social media integration with these stadium technologies are expected to create new business avenues for smart stadium service providers. In addition, various football teams/clubs from Europe have built their stadium and spent significant revenue on integrating new technologies to create a memorable experience for their fans in stadiums. In 2019, Manchester City Football Group partnered with Cisco to install Cisco technology across the Etihad Stadium in the U.K. Manchester United also partnered with HCL technology to install a digital solution at Old Trafford. Germany is one of the region's most prominent countries, accounting for 27.5% market share. The demand in Germany is surging due to a demand for wearables to track and monitor health continuously.

Furthermore, the legalization of sports betting in several regions, like the U.S. and Europe, is expected to influence the market positively. The adoption of advanced technologies in European stadiums due to increased sporting events is an impetus to the sports technology market's growth. Moreover, increasing demand for a high-quality viewing experience and the rising popularity of Bring-Your-Own-Device (BYOD) drive market growth in Europe.

North America is anticipated to exhibit a CAGR of 16.2% over the forecast period. The U.S. dominated the North American market, with a revenue share of 81.2% in 2020, and is expected to remain dominant over the forecast period. The top four leagues in terms of revenue in the U.S. are the National Basketball Association (NBA), Major League Baseball (MLB), National Football League (NFL), and National Hockey League (NHL). These leagues and others are aggressively adopting a variety of sports technologies.

The Asia-Pacific is expected to become a strong contender in the sports technology market by the end of the forecast period. The region is growing at the quickest rate. The consistent adoption of smart devices and the looming proliferation of the latest technologies in the sports industry are expected to drive the Asia Pacific regional market. Due to low labor and operation costs, industry participants are also expected to shift their manufacturing facilities to the Asia Pacific. Moreover, countries such as China, India, Singapore, Australia, and Japan are renovating the existing stadiums and are simultaneously focusing on constructing new ones.

Segmental Analysis

The global sports technology market is segmented by technology and sports.

Based on technology, the global sports technology market is segmented into devices, smart stadiums, analytics and statistics, and Esports. 

The smart stadium segment owns the highest market share and is estimated to exhibit a CAGR of 16.02% during the forecast period. Over the past years, several sports industry developments have occurred. The growing sports league culture in developing countries and technological advancements in developed and emerging economies are expected to generate significant opportunities for the companies' solutions for smart stadiums. The smart stadium has numerous integrated solutions that enable the venues to enhance and fulfill the requirements and experience of players, fans, and medical teams.

Additionally, the surging adoption of Internet of Things technologies for the efficient management of stadium infrastructure and the growing emphasis on engaging and delighting fans on the premises are expected to push the need for smart stadium technologies over the coming years. Sports governing bodies worldwide have imposed several security norms for the construction of stadiums. For instance, the UEFA partners collaborated with the UEFA Stadium and Security Committee to frame UEFA Stadium Infrastructure and Safety and Security Regulations. This aspect has positively influenced the demand for deploying efficient technologies within the stadiums.

The device segment is further bifurcated into wearables, digital signage, and cameras. The wearable devices technology segment dominated the devices market with a revenue share of 45.3% in 2020 and is expected to continue to grow over the forecast period. Wearable devices benefit professional athletes, amateur athletes, and fitness enthusiasts. Some wearables include player safety assessment tools, real-time physical performance metrics, and injury prevention. The primary motivations for adopting wearable technology are evaluating team performance, optimizing the team's training curriculum, and monitoring individual player performance. During the FIFA World Cup 2018, Fábio Mahseredjian, a Brazilian fitness coach, tactically used the data regarding the players' programs, injury tendencies, GPS data, and other fitness-related parameters collected by wearable technology.

Based on sports, the global sports technology market is bifurcated into American football/rugby, baseball, basketball, cricket, golf, ice hockey, tennis, soccer, and others. 

The soccer segment dominates the global market and is projected to exhibit a CAGR of 17.5% over the forecast period. Soccer is one of the leading sports which leverages sports technology. Soccer is a fast-paced game, and the need for correct and quick officiating is promoting leagues to adopt sports technologies such as goal-line technology and video-assisted referring. Similarly, sports technologies ensure efficient, quick, and high-quality transmission of broadcast signals, thus offering an impetus to market growth. In soccer, sports technology is used to make informed decisions and gain actionable insights into a player’s player. In the 2018 FIFA World Cup, a Video Assistant Referee (VAR) was used to help on-field referees with controversial match decisions.

Moreover, the International Football Association Board approved the use of electronic tracking systems in 2015. In March 2018, FIFA allowed the respective teams to share the players’ data with the coaches during live matches. Such developments are encouraging the use of technology in soccer.

The basketball segment is expected to register strong growth during the forecast period. Technologies such as data analytics, predictive measurements, mobile apps, and wearables are changing the global basketball landscape. The National Basketball Association (NBA) is the first sports league in the U.S. to invest significantly in a motion-tracking system. The National Basketball Association (NBA) has used the SportsVU optical tracking system to monitor and analyze player movements in real-time. The utilization of data analytics and statistical analysis is becoming increasingly prevalent within the realm of baseball. The presence of an analytics department is observed in nearly all teams. Many professional baseball teams, such as the Chicago Cubs and Houston Astros, rely heavily on data analytics and statistics technology.

Recent Developments

• June 2023- CBS Sports announced their collaboration with the Israeli sports technology ecosystem Hype Sports Innovation to find new methods to enhance the US broadcaster's sports coverage.
• August 2023-Indian cricket sensation Dinesh Karthik and squash champion Dipika Pallikal joined as strategic partners with Bengaluru-based Sports Tech startup Fanplay IoT. They will help enhance Fanplay's products and plans, guide product development, and increase Fanplay's global exposure.