NEW YORK, June 16, 2023 /PRNewswire/ — The global sports technology market size is estimated to grow by USD 29,950.64 million from 2022 to 2027, according to Technavio. The market is estimated to decline at a CAGR of 23.36% during the forecast period. Europe is estimated to account for 36% of the global market during the forecast period. For more insights on the historic (2017 to 2021) and forecast market size (2023 to 2027) – Request a sample report
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Sports Technology Market – Segmentation Assessment
Technavio has segmented the market based on End-user (sports associations, clubs, and leagues), Technology (Artificial intelligence or machine learning, Internet of things, and Augmented reality or virtual reality), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).
- The market share growth by the sports association segment will be significant during the forecast period. To run their operations smoothly, sports association uses sports technology solutions such as sports plus. The primary uses of sports technology in a sports association are publishing program information to member clubs and individuals, selecting event venues, generating registration forms, and overviewing member activities. Sports associations also use sports technology for sports analytics and for publishing player ranking based on the analytics data available. Additionally, they use sports technology in promoting events and updating audiences and member clubs with the latest news. Hence, multiple benefits of sports technology will boost its demand from sports associations which, in turn, will fuel the growth of the market in focus during the forecast period.
By geography, the global sports technology market is segmented into Europe, North America, APAC, South America, and the Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global sports technology market.
- Europe is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The sports technology market in Europe is anticipated to record a steady growth rate during the forecast period. Europe was the leading geographical segment, with a high demand for sports technology in Western and Central Europe. The UK, Germany, Spain, Italy, and Finland are some of the major contributors. Hence, these factors such as the growth in the adoption of smart wearables and the growing demand for IoT-operated connected fitness devices drive the regional sports technology market.
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Sports Technology Market – Market Dynamics
Key factor driving market growth
The rising number of sports technology events is the prime factor driving the global sports technology market growth. Events using sports technology are not limited to online audiences. The use of sports technology in physical locations augments the target audience, actively encourages the concept of sports technology in the field, and improves the morale of sports technology players. The investment required to do so is relatively high and this restricts the participation of teams or players from various parts of the world. For instance, the US has sports technology arenas in seven different locations, while Meltdown sports technology bars are present at 27 global locations, and Wangyu Cybernet Cafes are present at around 1,000 locations worldwide. Additionally, the organizations that conduct sports technology events at physical locations are popular, especially in China, where six cities are making efforts toward becoming key sports technology hubs in the country. These cities are introducing policies and signing partnership deals or agreements to encourage sports technology events. Hence, these factors will fuel the growth of the market focus during the forecast period.
Leading trends influencing the market
The advent of visual technologies for sports is an emerging trend in the global sports technology market growth. Visual technologies such as VR and AI are gaining significance in general sports viewing and sports illustration. Furthermore, sports leagues, clubs, and coaches are increasingly using VR to deliver real-time experiences to aspiring players. However, VR allows athletes to train in real-world conditions using data collected during virtual training sessions. These data can be used to develop insights on player performance by providing the data to sports analytics platforms to enhance the performance levels of players through the introduction of different training sessions. VR allows athletes to have a better vision of the game, increase endurance, and predict the actions of opponents, thus, allowing them to enhance their techniques. Such developments are anticipated to continue, which will drive the growth of the market focus during the forecast period.
Major challenges hindering the market growth
System integration and interoperability issues are major challenges hindering the growth of the global sports technology market growth. Generally, the adoption of advanced technology has increased significantly in many industries, including the sports industry, creating challenges for system integration and interoperability. Vendors must provide IT solutions that integrate seamlessly with the end-of-the-sports industry’s user’s IT infrastructure. Technical glitches during operations can incur costs to clubs and leagues and reduce operational efficiencies. However, the integration of multiple IT systems on traditional IT infrastructure can create a lot of cross-platform system integration issues, which may impede the growth of the market in focus during the forecast period.