Sports

Revenue in the Sports market is projected to reach US$1.26bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.80%, resulting in a projected market volume of US$1.45bn 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$126.20 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 Nordics is experiencing slow growth, with various factors impacting this such as the sub-markets of Soccer, American Football, Basketball, Baseball, and Cricket. This can be attributed to declining viewership and engagement, increasing competition from other entertainment sources, and the impact of the pandemic on live sports events. However, with the rising popularity of virtual sports and digital platforms, there is potential for future growth in the market.

Customer preferences: With the rise of social media, there has been a significant shift in how sports are marketed and promoted to consumers in the Nordics. Brands are now leveraging social media influencers to reach a wider audience and connect with fans in a more personal and authentic way. This trend is also influencing consumer preferences, as individuals are more likely to trust and engage with recommendations made by influencers they follow on social media. Additionally, there has been a growing focus on promoting diversity and inclusivity in the sporting industry, reflecting the changing values and demographics of the region.

Trends in the market: In the Nordics, the Sports Market is experiencing a shift towards digitalization and technology integration. This trend can be seen in the rising popularity of fitness apps and wearable devices, providing users with personalized workouts and tracking their progress. In addition, there is a growing interest in virtual training and online coaching services, enabling individuals to access expert guidance and training from the comfort of their own homes. These trends are significant for industry stakeholders as they offer new opportunities for revenue streams and better customer engagement. Moreover, the increased accessibility and convenience of digital services in sports can attract a wider audience and improve overall participation rates. However, there may be potential implications for the traditional brick-and-mortar sports retailers and gyms, as the demand for their services may decrease with the rise of digital options. As such, adapting to the changing landscape and finding ways to integrate digital elements into their offerings may be crucial for the success of these stakeholders.

Local special circumstances: In the Nordics, the Sports Market is heavily influenced by the cultural value placed on physical activity and sports. The region has a strong tradition of outdoor activities and a high participation rate in team sports. This has spurred the growth of a dynamic sports industry, with a focus on sustainability and technology, such as innovative gear and training methods. In addition, the inclusive nature of Nordic society has led to a wide range of sports organizations and clubs, fostering a deep-rooted sense of community and support for both amateur and professional athletes.

Underlying macroeconomic factors: The Sports Market in the Nordics is strongly influenced by macroeconomic factors such as consumer spending, political stability, and trade policies. The regions strong economy and high levels of disposable income have driven consumer demand for sports products and services, while stable political environments and free trade agreements have allowed for the easy flow of goods across borders. The regions commitment to sustainability and innovation has also resulted in increased investment in eco-friendly and technologically advanced sports equipment and facilities, further boosting the markets growth. Additionally, the increasing popularity of healthy and active lifestyles among the regions population has contributed to the demand for sports and fitness products.

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.