Sports

Revenue in the Sports market is projected to reach US$52.56bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.35%, resulting in a projected market volume of US$68.21bn 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$191.80 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 NAFTA has been experiencing steady growth, driven by factors such as increasing popularity of Soccer, American Football, Basketball, Baseball, and Cricket, as well as rising health awareness among consumers. However, minimal growth in the overall market can be attributed to factors such as high competition, changing consumer preferences, and the impact of COVID-19 on sports events and sponsorships.

Customer preferences: As the North American Sports market continues to grow, consumer preferences have shifted towards personalized fitness options and experiences. With the rise of health and wellness culture, there has been an increase in demand for remote coaching and virtual fitness classes. Additionally, the pandemic has accelerated the use of digital platforms for training and competition, highlighting the need for innovative and convenient sports technologies. As such, companies are investing in new tools and technologies to cater to these evolving consumer preferences.

Trends in the market: In the NAFTA region, the Sports market is seeing a rise in online platforms and streaming services for live sports events. This trend is driven by increased consumer demand for convenience and the growth of digital technologies. It also presents opportunities for industry stakeholders to reach a wider audience and increase revenue through targeted advertising. However, there are potential implications for traditional broadcasters and cable companies, as well as the live event experience for fans. Additionally, there is a growing trend towards incorporating technology into sports itself, such as virtual and augmented reality experiences for fans, and the use of data analytics for performance analysis and player scouting. This trajectory towards a more digital and data-driven sports industry has the potential to revolutionize the way viewers engage with and experience sports. Industry stakeholders will need to adapt and innovate in order to stay competitive in this evolving market.

Local special circumstances: In the North American Sports market, the geographical and cultural landscape plays a vital role in shaping consumer behavior and market trends. In Canada, the popularity of ice hockey and the strong community ties to the sport drive the demand for hockey merchandise and sports equipment. In Mexico, the passion for soccer and the influence of Latin American culture lead to a high demand for authentic team merchandise and sports events. In the United States, the strong presence of professional leagues and the widespread popularity of various sports contribute to the vast and diverse consumer base for sports products and services.

Underlying macroeconomic factors: The Sports Market market is substantially impacted by macroeconomic conditions, such as changes in global and national economic trends, shifts in government fiscal policies, and various other financial indicators. The performance of this market is closely tied to the overall economic health of the country, making it vulnerable to fluctuations in economic growth rates and consumer spending. For instance, during economic downturns, consumer spending on sports activities and merchandise may decrease, resulting in lower market demand and revenues. On the other hand, in times of economic stability and growth, consumers tend to have higher disposable income, which can positively impact the market. Moreover, changes in government policies, such as tax rates and trade agreements like NAFTA, can also significantly influence the Sports market in terms of pricing, production, and international trade.

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.