While the pandemic brought everyday life to a screeching life, sports technology continued to remarkably grow at a substantial rate.
According to a report by Grand View Research, the global sports technology market size was valued at $11.70 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 16.8 percent from 2021 to 2028.
The rising adoption of emerging technologies, such as the internet of things (IoT) and data analytics, along with social media integration, across various sports, is expected to drive the market over the forecast period.
“A strong emphasis on audience engagement and entertainment activities coupled with the digital transformation of stadiums is anticipated to drive the demand for technology-driven services in the sports arena,” the report explained.
The industry is experiencing a paradigm shift due to increasing investments by various organizations in adopting the latest technologies for monitoring players’ performance and engaging fans, among other activities.
In parallel, another report from ResearchAndMarkets also echoed the rise in their projection, saying that the global Sports Technology market, which is likely to amass revenue worth nearly $41.88 billion by 2026, will register a CAGR of nearly 21.4 percent during the period from 2020 to 2026.
Sports technology has gained humongous popularity in outdoor activities including football, rugby, cricket, and football.
“Apart from this, indoor sports activities are contributing notably towards the sports technology industry growth. The use of sports technology in swimming, badminton, and chess is likely to offer new growth avenues for the market over the estimated timespan,” the ResearchAndMarkets report highlighted.
It continued: “A prominent surge in the acceptance of wearable equipment by athletes across the globe is set to steer the expansion of sports technology industry over the forecast timeline.”
The report also stressed that the adoption of connected things in the sports activities is anticipated to play a major role in influencing the expansion of sports technology market in the years ahead. Sports technology assists in knowing the injury status of the players and helps the coaches as well as physiotherapists in lessening the pain.
The use of artificial intelligence (AI) in sports has brought automated ticket sales, raising athlete performance in sports events, enhancing athlete training, and assessing the performance of sportspersons.
“This, in turn, will steer the expansion of sports technology industry over the assessment timeline. With the onset of augmented reality and virtual reality in sports sector, the market for sports technology is anticipated to gain traction over the period from 2020 to 2026,” the authors of the report noted.
This surge of the global sports technology market has trickled down to other sports brands such as Nike who recently reported fiscal 2021 financial results for its third quarter ended February 28, 2021.
The company’s third quarter recorded revenues of up to $10.4 billion, up 3 percent compared to prior year and down 1 percent on a currency-neutral basis led by Greater China reported revenue growth of 51 percent.
In parallel, direct sales reached $4 billion, up 20 percent on a reported basis, and up 16 percent on a currency-neutral basis. NIKE Brand digital sales increased 59 percent, or 54 percent on a currency-neutral basis, with strong double-digit increases in all geographies.
North America reported revenue declined 10 percent due to supply chain challenges, including global container shortages and U.S. port congestion, impacting the flow of inventory and timing of wholesale shipments.