Sports

Revenue in the Sports market is projected to reach US$11.96m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.73%, resulting in a projected market volume of US$12.40m by 2029.
In global comparison, most revenue will be generated United States (US$49.76bn in 2024).
The average revenue per user (ARPU) in the Sports market is projected to amount to US$13.65 in 2024.

Definition:

The sports market encompasses various segments related to popular sports such as Soccer, Football, Basketball, Baseball, and Cricket. These segments include media, ticket sales, and merchandise sales, catering to the diverse needs of sports enthusiasts worldwide.

Structure:

Media: This market focuses on revenues generated from broadcasting rights, digital streaming services, advertising, and sponsorships related to sporting events. It encompasses television broadcasting, online streaming platforms, and radio broadcasts dedicated to Soccer, Football, Basketball, Baseball, and Cricket.
Ticket Sales: This part comprises revenues generated from the sale of tickets for live sporting events, including matches, tournaments, and championships in Soccer, Football, Basketball, Baseball, and Cricket. It encompasses sales from both physical ticket outlets and online ticketing platforms.
Merchandise Sales: This market includes revenues derived from the sale of sports-related merchandise such as jerseys, caps, memorabilia, equipment, and accessories associated with Soccer, Football, Basketball, Baseball, and Cricket. It covers sales through retail outlets, online stores, and official team or league merchandise shops.

Additional information:

The market metrics include revenues, users, average revenue per user, and market penetration rates. Revenues are primarily driven by consumer spending on media subscriptions, ticket purchases, and merchandise. Insights into the consumer market also encompass data on specific sports events, teams, and leagues, providing comprehensive analytics for informed decision-making.

Key players in the sports market include major sports leagues, broadcasting networks, sports apparel brands, and retail chains specializing in sports merchandise. For further details on the data presented, refer to the information provided alongside the respective data sets.

Ticket sales from games, such as league games
Revenue from merchandise, such as jerseys
Revenue from media rights, such as TV broadcasting

Revenue from player transfers, such as transfer fees
Tickets sold on the secondary market, such as on eBay
Revenue from licensing or sponsorship, such as from logos

The Sports market in Ethiopia has been steadily growing, but at a negligible rate. Factors such as limited access to resources, lack of infrastructure, and low participation rates in certain sports contribute to this slow growth. Additionally, the popularity and dominance of soccer in the country may limit the growth potential of other sports sub-markets. The potential for growth lies in increasing awareness and accessibility to sports, as well as improving overall sporting infrastructure.

Customer preferences: As Ethiopias population becomes more urbanized and modernized, there has been a notable increase in demand for fitness and wellness activities. This has led to a rise in popularity for gyms and fitness centers, as well as an influx of sports apparel and equipment brands. Additionally, the rise of social media and influence from Western cultures has led to a growing interest in team sports, such as soccer and basketball, among younger demographics. This shift towards a more active lifestyle and focus on physical health trends towards more Westernized norms, while still incorporating traditional Ethiopian cultural values surrounding teamwork and community sports.

Trends in the market: In Ethiopias Sports Market, the current trend is the rise of e-sports, with more events, tournaments, and teams emerging in the country. This trend has been fueled by the increasing access to technology and internet connectivity. Furthermore, there is a growing interest in traditional Ethiopian sports, such as distance running and football, with a focus on developing talent and infrastructure. These trends have significant implications for industry stakeholders, including increased revenue potential, opportunities for sponsorships and partnerships, and the need for investments in technology and infrastructure to support the growing market. Additionally, these trends reflect a shift in consumer preferences, with a greater demand for digital and immersive sports experiences. It is crucial for industry stakeholders to adapt and capitalize on these trends to stay competitive in the evolving Ethiopian Sports market.

Local special circumstances: In Ethiopia, the Sports Market has been heavily influenced by the countrys love for athletics. With a strong focus on long-distance running and a rich history in sports, Ethiopians have a natural inclination towards sports and fitness. The countrys diverse landscape also lends itself to various outdoor activities, such as hiking and cycling. Furthermore, the government has been actively promoting sports and physical activity as a means to combat health issues, leading to a growing demand for sports equipment and facilities. These factors create a unique market environment for sports in Ethiopia, different from other markets.

Underlying macroeconomic factors: The Sports Market in Ethiopia is heavily influenced by macroeconomic factors, including the countrys national economic health and fiscal policies. As with many developing nations, Ethiopias economy is still heavily reliant on agriculture, but the government has taken significant steps to diversify and modernize the economy in recent years. This includes investing in infrastructure and promoting private sector growth. However, challenges such as high inflation rates and limited access to credit continue to hinder market growth. As Ethiopias economy continues to develop, there may be increased opportunities for growth in the Sports market, but the countrys macroeconomic stability is crucial for sustained growth in this sector.

Data coverage:

The data encompasses B2C and B2B revenues. Figures are based on media spending, merchandise spending, and ticket spending. All monetary figures for merchandise and tickets refer to consumer spending on goods or tickets in the respective segment, which can be online and offline.

Modeling approach / Market size:

Market sizes are determined through a combination of bottom-up and top-down approaches, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per ticket, price on sport goods). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet consumption. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function or linear forecasting, as it fits the development of either strong growing markets or more sophistacted and saturated markets, such as soccer in Europe.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). We also account for the different cycles of international tournaments, such as world cups or continent cups. Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.