Sports - Indonesia

Indonesia

Revenue in the Sports market is projected to reach US$207.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.04%, resulting in a projected market volume of US$229.60m by 2029.
In global comparison, most revenue will be generated in the United States (US$49,760.00m in 2024).
The average revenue per user (ARPU) in the Sports market is projected to amount to US$16.54 in 2024.

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Analyst Opinion

The Sports market in Indonesia has been experiencing slow growth, affected by factors such as low investment in infrastructure, limited government support, and lack of popularity for certain sub-markets. Despite the potential growth of soccer and basketball, the overall market is hindered by the dominant influence of traditional sports and the economic challenges faced by the country. This has resulted in negligible growth in the Sports market in Indonesia.

Customer preferences: A growing trend in Indonesias Sports Market is the rising popularity of e-sports and online gaming. With the increasing availability of affordable smartphones and internet connectivity, more Indonesians are turning to virtual sports and gaming platforms for entertainment. This trend is further fueled by a younger generation that is highly tech-savvy and values the social aspect of online gaming. As a result, companies are investing in e-sports and virtual gaming events, while also incorporating gamification into their products and services to attract and engage consumers.

Trends in the market: In Indonesia, the Sports Market sector is experiencing a surge in the use of technology and digital platforms. With the rise of e-commerce and the increasing popularity of online shopping, sports brands are now focusing on creating a strong online presence to cater to the growing demand for sports products. This trend is expected to continue on an upward trajectory as more consumers turn to online channels for their sports needs. The implications of this trend are significant for industry stakeholders, as it requires a shift in marketing strategies and a focus on creating a seamless omnichannel experience for customers. Additionally, the use of data and analytics in the Sports market is gaining momentum, allowing businesses to better understand consumer preferences and tailor their offerings accordingly. This trend is expected to bring about a more personalized and targeted approach in the industry, benefitting both businesses and consumers alike.

Local special circumstances: In Indonesia, the Sports Market is heavily influenced by the countrys rich tradition of sports, such as Badminton and football, which have a strong following among the population. Additionally, Indonesias large and diverse population and its rapidly growing economy make it an attractive market for sports companies and brands. This market is also affected by Indonesias unique regulatory policies, such as the requirement for foreign companies to have a local partner to operate in the country. These factors play a significant role in shaping the landscape of the Sports Market in Indonesia.

Underlying macroeconomic factors: The Sports Market in Indonesia is heavily influenced by macroeconomic factors such as the countrys economic growth, political stability, and government policies. The growth of the economy has spurred disposable income among the population, leading to a greater demand for sports products and services. Moreover, the countrys government has implemented policies to strengthen and support the sports industry, creating a favorable environment for market growth. Additionally, the growing interest and participation in sports activities, especially among the youth, is driving the demand for sports products and services in Indonesia.

Methodology

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.