Recreation Industry Overview

Spectator Sports Market Definition

The spectator sports market consists of sales of spectator sports services and related goods by entities that provide live sporting events for a paying audience. Spectator sports include the presentation of sporting events by teams and clubs or independent athletes. Owners of teams, horses, and so on that enter participants into racing events or other spectator sports events and the sports trainers who provide specialized services to support participants in sports events or competitions are part of this industry. The establishments that operate race tracks are also included in this industry. This industry comprises sports teams or clubs primarily participating in live sporting events before a paying audience; establishments primarily involved in operating racetracks; independent athletes engaged in participating in live sporting or racing events before a paying audience; owners of racing participants, such as cars, dogs, and horses, primarily engaged in entering them in racing events or other spectator sports events; and establishments, such as sports trainers, primarily involved in providing specialized services to support participants in sports events or competitions. The sports teams and clubs included in this industry may or may not operate their own arena, stadium, or other facility for presenting their games or other spectator sports events. Spectator sport revenues come from attendees and television (TV) viewers/radio listeners (TV pays licenses to the teams to stream the matches).

Esports Market Definition

The esports market consists of sales of esports and related goods by entities (organizations, sole traders and partnerships) that operate esports facilities. Esports or electronic sports are team-based sports played online and are supported by electronic systems in which all the functions are performed through a human-computer interface. Esports are played by professional gamers that are sponsored by business organizations, or from sporting organizations. There are various types of esports such as multiplayer online battle arena (MOBA), real time strategy, first person shooter, fighting, and sports. These games are played on various platforms such as PC, console, mobile, and others.

Amusement Parks Market Definition

The amusement parks market consists of sales of amusement parks entertainment and related goods by entities (organizations, sole traders and partnerships) that operate amusement parks and arcades. The amusement parks market also includes sales of amusement arcades such as family fun centers, pinball arcades, and amusement device parlors. This market includes sales of entry fees and ticket sales for rides, games, food and beverages, merchandise goods, and hotels and resorts. However, this market excludes sales of exclusive restaurants such as fast-food chains operating within the amusement parks. Amusement and theme park companies operate mechanical rides, water rides, water games (includes both spectator sports and crowd engagement games), events, games, shows, themed exhibits, refreshment stands and other visitor attractions for entertainment. The market by value in this report is defined as the revenues that enterprises gain from goods and/or services within the specified market and geography. It does not include revenues from resales either further along the supply chain or as part of other products. Only goods and services traded between entities or sold to end consumers are included. Whether specifically stated or not, the markets for goods include related services and the markets for services include related goods.

The fantasy sports market consists of sales of fantasy sports services by entities (organizations, sole traders, and partnerships) that are engaged in providing online gaming and betting services. Fantasy sports, often known as rotisserie sports or roto, are any of a variety of games that allow a player to play a virtual game or a virtual season of a league. These teams compete based on the statistical performance of those players in actual games. In fantasy sports, a player earn points based on real life statistics that are converted into fantasy points. The fans take on the roles of both general manager and field manager for their team, assembling a squad through a draft and deals and putting together lineups in desire of the highest statistical output.

The main types of fantasy sports are football, baseball, basketball, hockey, cricket, and others. Fantasy football is an interactive game in which people battle as general managers of virtual clubs against one another. Fantasy baseball is a game in which the participants serve as owners and general managers of virtual baseball teams of real Major League baseball players. Fantasy basketball is a game in which the players take the role of general managers of the fantasy teams they create from drafting actual National Basketball Association players based primarily on their basketball statistics. Fantasy hockey is a game where players build a team that competes with other players who do the same, based on the statistics generated by professional hockey players or teams where the majority of fantasy hockey pools are based on the teams and players of the ice hockey National Hockey League. Fantasy Cricket is an online game based on strategy where a player have to create a virtual team of real cricketers playing in real matches around the world and points are scored depending on how those players perform in real-life matches. The different usage types include free, paid, hybrid and is implemented in various platforms such as website, mobile application. It is used in both individual and team competitions.

The global fantasy sports market is expected to grow from $20.36 billion in 2020 to $22.31 billion in 2021 at a compound annual growth rate (CAGR) of 9.5%. The growth in the fantasy sports market is mainly due to the increasing youth population, growth in digital infrastructure, availability of affordable smartphones, increasing popularity of players in various sports, growing investment in internet infrastructure and the launch of fantasy sports applications. The market is expected to reach $38.60 billion in 2025 at a CAGR of 14.7%.

The increasing youth population is contributing to the growth of the fantasy sports market. With the present youth spending more and more time on smartphones and, by extension, social media, and fantasy sport has provided them with the possibility to connect and have more enjoyable conversations and competitions with their peers. According to the United Nations population projections, there were 1.2 billion people aged 15 to 24 in the globe in 2019, or around one in every six people. By 2030, the world's young population is expected to increase by 7% to 1.3 billion. Thus, the increasing youth population propels the growth of the fantasy sports market.

Artificial intelligence is a key trend gaining popularity in the fantasy sports market as it can help a player to focus on the decisions that matter such as whom to start with and which players to trade. Artificial intelligence (AI) is the capacity of a computer or a robot operated by a computer to do activities that normally involve human intelligence and discernment. Major players operating in the fantasy sports sector are focused on artificial intelligence technology to reduce the complexities in fantasy sports trading. For instance, in September 2020, IBM and ESPN introduced a new fantasy football app feature that uses IBM Watson's artificial intelligence to generate fair transactions and keep players informed. The feature develops on ESPN and IBM's efforts to use artificial intelligence to make fantasy football more interesting (AI).

In January 2021, Bally’s Corporation, a US-based gambling company acquired Monkey Knife Fight (MKF) for an undisclosed amount. The acquisition makes Bally's the third sports betting company in the USA to have a fantasy sports segment, and advances the company's long-term growth and diversification strategy to become the first truly vertically integrated sports betting and iGaming company in the USA with a B2B2C business model. Monkey Knife Fight (MKF) is a North America-based fantasy sports gaming website.

Major players in the fantasy sports market are DraftKings, Fan Duel, Fantrax, Nfl Fantasy, Dream Sports, Yahoo Fantasy, Bovada, Fox Sports Fantasy Football, Fantasy Pros, Good Gamer Corporation, Draft Team Fantasy Sports, 11Wickets, Battlefy, Mobile Premier League (Mpl), Sportito, and Winview Games.

North America was the largest region in the fantasy sports market in 2020. Asia Pacific is expected to be the fastest region in the forecast period. The regions covered in the fantasy sports market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the fantasy sports market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The global fantasy sports market is segmented -

1) By Sports Type: Football, Baseball, Basket Ball, Hockey, Cricket, Others

2) By Platform: Website, Mobile Application

3) By Usage Type: Free, Paid, Hybird

4) By Application: Individual Competition, Team Competition

Sports Market Definition

The sports market consists of sales of sports services and related goods by entities (organizations, sole traders and partnerships) that offer spectator sports and participatory sports. Spectator sports include teams or clubs and independent athletes that present sporting events before a paying audience. The racing team owners of racing participants that enter the participants into racing events or other spectator sports events and the sports trainers who provide specialized services to support participants in sports events or competitions are part of this industry. The establishments that operate race tracks are also included in this industry. The sports market consists of the sales of sports services and related goods by entities that provide live sporting events before a paying audience or entities that operate golf courses and country clubs, skiing facilities, marinas, fitness and recreational sports centers, and bowling centers.

The esports market consists of sales of esports and related services. Esports or electronic sports are team-based sports played online and are supported by electronic systems in which all the functions are performed through a human-computer interface. Esports are played by professional gamers that are sponsored by business organizations, or from sporting organizations.

The global e-sports market is expected grow from $0.97 billion in 2020 to $1.28 billion in 2021 at a compound annual growth rate (CAGR) of 32%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2.89 billion in 2025 at a CAGR of 23%.

The esports market covered in this report is segmented by game into multiplayer online battle arena (MOBA); real time strategy; first person shooter; fighting and sports.

The rising demand for video games and increasing awareness of esports contribute to the growth of the esports market. As technology is expanding so the video content, products, virtual reality, and video game competitions are increasing. Video gaming has become a transforming pop culture and redefining the ways that young people consume entertainment. In 2019, according to PwC's latest Global Entertainment & Media Outlook, the videogames market in the United States is expected to reach $30 billion by 2023. The revenue of esports in 2018 reached $1.43 billion and is estimated to reach $1.57 billion by 2019. Therefore, the rising demand for video games and increasing awareness of esports drives the market’s growth in the forecast period.

Match-fixing has always been a major challenge in the esports industry. Match-fixing in esports is when a player intentionally loses to win a bet. The esports market will be negatively impacted when viewers start to believe that esport is losing its integrity due to match-fixing. In 2019, in Australia, match-fixing in esports resulted in the arrest of six Australian gamers. Also, in 2018, according to the global Esports Survey 2018, a total of 78% of respondents stated match-fixing as a serious risk to the esports industry, which is expected to reach $1 billion by the end of 2018. Therefore, match-fixing limits the growth of the esports market.

Esports companies are investing in innovative new esports platform for increasing their revenue and expanding their consumer base and also for gaining a competitive edge over their rivals. For instance, in 2019, in Africa, NickX, an esports platform, launched by Viacom provides children with a tournament platform, using Nickelodeon gaming content. Also, for instance, in 2019, IKON, a USA-based gaming platform company launched a new platform that allows players to challenge fans and friends in games, such as league of legends and PUBG. Also for instance, in 2019, Mobile Premier League (MPL), an India-based mobile esports platform company launched its mobile esports platform in Indonesia.

In June 2019, Immortals gaming club, a USA-based company specialized in providing esports platform through the development of software such as video game software, acquired Infinite esports & entertainment for over $100 million. The acquisition is expected to help Immortals gaming club to become a part of franchised esports leagues and to become the world's largest esports organizations, boosting elite brands such as Immortals, OpTic, MIBR and LA Valiant. Infinite esports & entertainment is a USA-based esports and entertainment holdings company that specializes in electronic sports, online media and multi-gaming.

The major players covered in the global e-sports market are Modern Times Group MTG AB, Activision Blizzard Inc., Gfinity, PLC, Turner Broadcasting System, Valve Corporation, Tencent, Electronic Arts, Inc., Hi-Rez Studios, Nintendo, FACEIT, CJ Corporation, Kabam, Wargaming Public, Rovio Entertainment, GungHo Online Entertainment, Riot Games Inc., Epic Games, Alisports, Total Entertainment Network, King Digital Entertainment PLC, Zynga Inc., Gamevil Inc., Cloud9, Team SoloMid, Team Liquid, Echo Fox, Fnatic, Gen.G Esports, 100 Thieves, G2 Esports, Immortals.

The countries covered in the global e-sports market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global e-sports market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global e-sports market is segmented -

1) By Game: Multiplayer Online Battle Arena (MOBA), Real Time Strategy, First Person Shooter, Fighting And Sports

2) By Platform: PC, Console, Mobile, Others

3) By Revenue Source: Sponsorship, Advertising, Merchandise & Tickets, Publisher Fees, Media Rights

The online gambling market comprises of revenue generated by remote gaming activities by means of the internet using desktop and mobile devices. The market includes gambling establishments developing online sports betting, casino, bingo, lotteries, and poker games, among others.

The global online gambling market is expected grow from $64.13 billion in 2020 to $72.02 billion in 2021 at a compound annual growth rate (CAGR) of 12.3%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $112.09 billion in 2025 at a CAGR of 12%.

Increasing adoption of smartphones with improved internet accessibility is driving the online gambling market. Globally, the average use of mobile devices compared to desktop computers or laptops is significantly greater. In most countries, the mobile users account for about 80% of all users in the online gambling industry. According to the study published on the Rub90 portal, the share of gamblers preferring smartphones to participate in gambling grew by 117% between 2012 and 2018. According to the report Gambling Participation in 2019: behavior, awareness and attitudes, 18% of the respondents gambled online at least once while 21% of the respondents gambled in 2019. According to Cisco company's annual report, globally, the total number of internet users is projected to grow from 3.9 billion in 2018 to 5.3 billion by 2023 at a CAGR of 6 percent, and smartphones will grow at a 7 percent CAGR. This in turn is expected to drive the online gambling market.

Online gambling laws vary wildly from one region to other. Most countries have their own local laws that deal with the relevant legal and regulatory issues. Countries such as the USA, have much more complex gambling regulatory processes. Moreover, in countries like India, gambling is under strict control. With each individual country implementing different gambling laws, it's tough to be familiar with them all. Nevertheless, all gambling sites should be compliant with any laws that they are subject to, to ensure gambling sites are operated lawfully, ethically, and are safe. The established and reputable licensing authorities impose a strict code of conduct on the licensees, who have to adhere to the necessary regulations if they are to maintain their licenses. The strict and varying laws across the countries are likely to challenge the market growth.

Technologies such as Blockchain, IoT and VR are changing everything in every field including online gambling. Virtual Reality and VR Headsets have gained a lot of popularity in recent years and are revolutionary addition to the world of online gambling. With VR, one can actually enter into a virtual casino and play all the games without having to travel. However, fraud and cheating were majorly concerning the users in online gambling. A lot of online casinos and online gambling sites have been accused of not being transparent and hiding their internal workings and the methods for their dealings. These concerns can be addressed using blockchain technology. With blockchain technology, everyone will be able to see exactly what is going on behind the scenes. Games such as SlotsMillion, Casino VR Poker, and The Gear that are played through VR are engaging the customers and are shaping the online gambling industry.

In January 2019, MRG (Mr Green Ltd) was acquired by one of the world's largest betting and gaming companies William Hill PLC for $321.22 million. Following the acquisition of MRG by William Hill PLC, the MRG brands will be part of the William Hill. Mr Green Ltd., is an online gambling company.

The major players covered in the global online gambling market are 888 Holdings PLC, Bet365 Group Ltd., Betsson AB, William Hill PLC, GVC Holdings PLC, Kindred Group PLC, Sky Betting & Gaming, Stars Group Inc., Ladbrokes Coral Group PLC, Paddy Power Betfair PLC.

The countries covered in the global online gambling market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global online gambling market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global online gambling market is segmented -

1) By Game Type: Betting, Casino, Lottery, Poker, Online Bingo, Others

2) By Device: Desktop, Mobile, Others

The recreation market consists of sales of the use of recreational facilities, and recreational services and related goods by entities (organizations, sole traders and partnerships) that provide recreational services. Recreational activities include taking part in sporting activities and visiting museums, historical sites, zoos and parks and also witnessing spectator sports and events. Gambling except casino hotels can also be considered to be part of recreation market. The recreation market is segmented into amusements; arts and sports.

The global recreation market is expected to grow from $1253.24 billion in 2020 to $1425.74 billion in 2021 at a compound annual growth rate (CAGR) of 13.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The recreation market is expected to reach $1916.35 billion in 2025 at a CAGR of 8%.

Asia Pacific was the largest region in the global recreation market, accounting for 33% of the market in 2020. North America was the second largest region accounting for 30% of the global market. Africa was the smallest region in the global recreation market.

The recreation market growth is aided by stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global GDP growth will be 3.2% in 2019 and 3.5% in 2020. Recovering commodity prices, after a significant decline in the historic period is further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, India's GDP is expected to grow at 7.2%, whereas China is forecasted to register GDP growth of 6.0% in 2020 . Stable economic growth is expected to in end user markets, thereby driving the market during forecast period. This continued economic growth is expected to increase investments in the end user markets and be a driver of the recreation market as greater affluence allows consumers to visit recreation centers.

The outbreak of the Coronavirus disease (COVID-19) has acted as a massive restraint on the recreation market in 2020 as governments globally imposed lockdowns and restricted domestic and international travel limiting the need for services offered by these establishments. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in closure of recreational facilities such as amusement parks, museums and casinos with countries entering a state of lockdown and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the recreation market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Amusement parks are increasingly using virtual and augmented reality technology to provide an immersive experience to customers. Virtual reality is a 3D, computer generated environment which can interact with a person, whereas augmented reality turns an environment into a digital interface by placing virtual objects in the real world. Amusement parks are implementing this technology in rides and theater-based attractions. For instance, Plopsaland De Panne in De Panne, Belgium has a new virtual reality wooden roller coaster called Heidi The Ride, which can reach speeds of more than 43 mph. Amusement park SeaWorld has started operating a new Kraken Virtual Reality Roller Coaster in Orlando. The Weave Breaker coaster brings the reality of jet skiing in an amusement park. Universal Studios have The Walking Dead mazes with augmented reality elements.

Major companies in the market include The Walt Disney Company; Las Vegas Sands; Universal Studios; MGM Resorts; Merlin Entertainment Group.

The countries covered in the global recreation market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global recreation market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global recreation market is segmented -

1) By Type: Amusements, Arts, Sports

Subsegments Covered: Amusement Parks, Gambling, Museums, Historical Sites, Zoos, And Parks, Independent Artists And Performing Art Companies, Sports And Arts Promoters, Spectator Sports, Participatory Sports