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.
Spectator Sports Market Size
The global spectator sports market reached a value of nearly $143.8 billion in 2019, having grown at a compound annual growth rate (CAGR) of 7.3% since 2015, and is expected to grow at a CAGR of 7.5% to nearly $192.1 billion by 2023.
Growth in the historic period resulted from emerging markets growth, and rapid urbanization. Factors that negatively affected growth in the historic period were climate change, shortage of sports officials, and doping scandals impact sports.
Going forward, rising sponsorships, increase in internet accessible devices, multiple sports channels to capture viewership, and economic growth will drive growth. Factors that could hinder the growth of the spectator sports market in the future include threat from home entertainment, increasing regulations on sports, and epidemic disease outbreak.
Spectator Sports Market Drivers
The key drivers of the spectator sports market include:
Rising Sponsorships
The increasing sports sponsorships are expected to be a key driver of the sports market in the forecast period. In 2018, the global sports sponsorship market was valued at $46 billion, and it is expected to reach $49 billion by 2023, driving the sports market. Sponsorships generally help sports organizations in setting up and marketing the sports events to increase audience engagement. As a result, the sponsorship help driving the demand for sports, which is expected to continue in the forecast period.
Spectator Sports Market Restraints
The key restraints on the spectator sports market include:
Increasing Regulations On Sports
The sports industry is regulated by international and country-specific regulations, which pose a challenge to the sports market. For example, the introduction by the Association of Summer Olympic International Federations (ASOIF) of a compliance certification system based on control mechanisms, democracy, development, integrity and transparency has underlined the need for all sports entities to ensure adequate internal procedures to be implemented, monitored and regularly updated. Similarly, the UK’s Governance Code, which has recently been adopted, applies to all sports bodies that receive public funding. Regulations such as these increase the compliance costs for sports organizers, restricting the market’s growth.
Spectator Sports Market Trends
Major trends influencing the spectator sports market include:
Mobile Ticketing
Sports organizers and race organizers are implementing mobile ticketing to provide a hassle-free ticket purchase experience. Mobile ticketing is the process where customers can buy and validate the tickets using mobile phones. Event organizers production and distribution costs associated with traditional paper-based ticketing channels is eliminated with the implementation of mobile ticketing. Apart from this, the data exchanged digitally through ticket transactions enables sports organizers to learn more about fans and generate insights to formulate marketing strategies. FC Barcelona, a Spanish professional football club, has implemented mobile ticketing and eliminated paper tickets by introducing a new system that allows fans to scan a bar-code on their phones to gain access to matches. Pocono Raceway has launched a mobile ticket delivery system that allows fans to have their tickets delivered to their mobile devices and have their tickets scanned at the sports venue directly from their mobile devices.
Virtual Reality To Enhance Spectators’ Experience
Sports organizers are implementing virtual reality (VR) technology to improve the spectators’ experience in sporting events. Virtual reality generates images, sounds and other sensations that simulate a physical presence in an imaginary environment. Clubs and teams are experimenting with simulated and 360-degree environments to enhance the match viewing experience of the spectators by allowing them to have a virtual walkthrough of the stadium or the race track and view the match at different angles. For instance, the NBA game between the Sacramento Kings and San Antonio Spurs was broadcasted in VR. Similarly, National Association for Stock Car Auto Racing (NASCAR), an American auto racing sanctioning and operating company which is known for stock-car racing has created an interactive fan area at the race tracks with the implementation of virtual reality.
Opportunities And Recommendations In The Spectator Sports Market
Opportunities – The top opportunities in the global spectator sports market segmented by revenue source will arise in the media rights segment which will gain $14.4 billion of global annual sales by 2023. The top opportunities in the global spectator sports market segmented by media type will arise in the traditional media segment which will gain $11.6 billion of global annual sales by 2023. The top opportunities in the global spectator sports market segmented by type will arise in the sports team & clubs segment which will gain $35.1 billion of global annual sales by 2023.
Market-trend-based strategies for the spectator sports market include mobile ticketing, virtual reality to enhance spectators’ experience, analytics for pricing tickets, emerging markets are investing in sports, fusion of sports and entertainment, sponsorships to partnerships, corporate social responsibility and sustainability, rising demand for smart arenas/stadiums. Player-adopted strategies in the spectator sports industry include developing strategic partnerships and collaborations to improve operations, strengthening business and service offerings through acquisitions, and investing in new infrastructure, and improving its international presence.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends that spectator sports companies consider focusing on adoption of mobile ticketing facilities, fusion of sports and entertainment, adoption of VR And AR, personalization of fan engagement, offering sports tourism, expand in emerging markets, expansion through Pay TV viewership, implement dynamic pricing, leverage social media to maximize reach, increase visibility through a high-performance website, partner with big brands, offer goods and services to women, increase offerings to paralympic sportspersons.
Spectator Sports Market Segmentation
The spectator sports market is segmented by type.
By Type-
The spectator sports market can be segmented by type
The sports team & clubs market was the largest segment of the spectator sports market segmented by type, accounting for $108.6 billion or 75.5% of the total in 2019 and racing & individual sports market is expected to be the fastest-growing segment going forward at a CAGR of 8.4%.
By Revenue Source -
The spectator sports market can be segmented by revenue source
a) Media Rights
b) Tickets
c) Sponsorship
d) Merchandising
The media rights market was the largest segment of the spectator sports market segmented by revenue source, accounting for $38.81 billion or 27.0% of the total in 2019 and is expected to be the fastest-growing segment going forward at a CAGR of 8.2%.
By Media Type -
The spectator sports market can be segmented by media type
a) Traditional Media
b) Non-Traditional Media
The traditional media market was the largest segment of the spectator sports market segmented by media type, accounting for $29.69 billion or 76.5% of the total in 2019 and is expected to be the fastest-growing segment going forward at a CAGR of 8.6%.
By Geography–
The spectator sports market is segmented into
o North America
USA
Canada
Mexico
o Western Europe
UK
Germany
France
Spain
Italy
Denmark
Switzerland
Ireland
Sweden
Netherlands
Austria
Belgium
Portugal
Norway
Finland
o Asia Pacific
China
Japan
India
Australia
Philippines
Vietnam
Indonesia
Malaysia
New Zealand
Hong Kong
Singapore
South Korea
Thailand
o Eastern Europe
Poland
Russia
Romania
Czech Republic
o South America
Peru
Argentina
Chile
Brazil
Colombia
Venezuela
o Middle East
Saudi Arabia
UAE
Turkey
Israel
o Africa
Nigeria
Egypt
South Africa
North America was the largest region in the spectator sports market, accounting for 35.1% of the global market in 2019. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest growing regions in the spectator sports market will be Africa and Asia-Pacific, where growth will be at CAGRs of 11.3% and 11.2% respectively. These will be followed by Middle East and the Eastern Europe, where the markets are expected to grow at CAGRs of 10.2% and 8.6% respectively.
Spectator Sports Competitive Landscape
Major Competitors are:
• FC Barcelona
• Dallas Cowboys
• Real Madrid
• Manchester United Football Club
• New York Yankees
Other Competitors Include:
• New England Patriots
• Los Angeles Dodgers
• New York Giants
• Boston Red Sox
• Washington Redskins
• Canadian Football League
• Sacramento Republic FC
• North Carolina FC
• Cruz Azul
• Toronto FC
• Nashville Soccer Club
• Miami FC
• Arsenal F.C.
• Aston Villa F.C.
• Chelsea F.C.
• Valencia CF (Valencia Club de Fútbol)
• Juventus F.C.
• ATK Football Club
• East Bengal Football Club
• FC Goa
• Sydney Football Club
• Petaling Jaya City FC
• Persija Jakarta
• Wuhan Zall F.C.
• Hebei China Fortune F.C.
• Chongqing Dangdai Lifan F.C.
• Beijing Renhe F.C.
• Xinjiang Tianshan Leopard F.C.
• AC Sparta Prague
• Bohemians Praha
• Wisla Kraków
• FCSB
• CSKA Moscow
• Clube de Regatas do Flamengo
• Palmeiras
• Club de Deportes Santiago Wanderers
• Millonarios F.C.
• Clube Atlético Mineiro
• Hapoel Haifa F.C.
• Galatasaray S.K.
• Ettifaq FC
• Trabzonspor
• Al-Ahli Saudi FC
• Olympic Club
• Ismaily SC
• Kaizer Chiefs F.C.
• Orlando Pirates F.C.
• Bidvest Wits F.C.
• Enyimba International F.C
