Sportstech trends: 8 reports from the sports industry under the microscope

A peak is in sight, but we are still in the valley. "The investment figures are lower than in previous years," says Rohn Malhotra, founder of the market analysis company SportstechX. Start-ups are finding it more difficult to raise capital, investors are concentrating more on existing portfolios. However, there are a few downsides to this trend: the long-term potential of the sports tech market remains strong, as sport is becoming increasingly important as an asset class. How do analysts notice this? Rohn Malhotra says:

1. Serious backers are getting in: "More intelligent capital is flowing into the market. These are not billionaires buying a sports team for fun, but serious investors who expect long-term returns."
2. The big tech companies are playing along: "Apple, Amazon, Netflix and Google are now investing in sports rights. They are all hungry for content, and sport offers the best content potential."
3. Ex-athletes are investing: "Athletes are becoming a new generation of high-net-worth investors targeting the sports market."
4. Technology reaches a wider audience: "The democratization of technology is now making tools accessible to a wider audience."

Big tech is turning the sports tech market upside down - from media to fan experience: traditional rights holders are struggling with monetization. At the same time, companies such as Amazon are increasingly entering into partnerships for sports broadcasts - and integrating AI. Apple secures broadcasting rights for Major League Soccer and experiments with VR in the NBA. The beneficiaries: the fans. Thanks to AI, fans receive customized content in real time. Companies offer AI-based statistics and personalized commentary during live events. Others analyze live media content to generate highlight clips.

Web3 and blockchain are redefining fan engagement. Supporters enjoy digital collectibles and NFTs of their favorite clubs. New providers of BodyCam technology are putting athletes' perspectives directly on screen. Finally, start-ups are broadcasting more immersively: viewers of gaming events can jump directly into digital arenas as invisible avatars - and follow their favorite players across the pitches.

Speaking of gaming: 2025 will be the first year of Olympic e-sports games. The market is also set to develop. The global size could triple to USD 10.7 billion by 2032 - with an annual growth rate of 13%. "E-sports is growing in the Asian market in particular," explains analyst Aarti Dhapte from Market Research Future. "Young target groups in particular are connecting with this type of sport, as almost everyone has access to a smartphone."

From games to gyms: fitness technologies are on the rise, with investment in fitness tech rising to 43.5% of the total sports tech market last year - a significant increase from 28.6% in previous years. What is also on the rise: B2B solutions, which are now funded at almost the same level as their B2C siblings. Germany is one of the frontrunners: companies such as eGym (provider of smart fitness equipment), Urban Sports Club (booking network for sports and fitness) and Sports Alliance (software for sports and health facilities) received a lot of money.

"The sports industry benefits the most from wearable technology," says Aarti Dhapte from Market Research Future. She explains: "Wearable technology provides athletes and coaches with real-time data on heart rate, speed and exertion, which ensures optimized training plans and better recovery. In soccer, American football, ice hockey and basketball, they help to improve performance and minimize the risk of injury (see Trend 6). One start-up, for example, uses AI-based wearables to provide athletes with real-time insights into injury risks and training results. When it comes to regeneration, another start-up is using wearable devices that accelerate recovery with tiny electric shocks.

Natalia Karbasova also sees preventive health solutions as one of the market drivers. She is the CEO of FitTech Company, which brings together decision-makers from the industry in a business club. "I believe that ecosystems for healthcare in combination with lifestyle devices will conquer the market." Devices such as sleep trackers or ECG analyzers will increasingly contribute to early detection and create sustainable preventive healthcare. Companies are also working on other measurement tools, for example to "enter the untapped market of continuous urine tests."

"This is not just science fiction, but is being driven by large companies such as IBM, Oracle and SAP," explains Shivani Zoting, analyst at Precedence Research. What she means is that providers are relying on AR overlays that superimpose real-time information on gameplay. And this example is part of what analysts call "smart stadium technology". According to Precedence Research, this segment was the largest of the entire sports technology market in 2022 with a share of 43% - and is expected to grow at around 15% per year until 2032. IBM reports that over 80% of fans want personalized content and real-time interactions, particularly through AI-powered technologies.

In addition to augmented reality, the following technologies are being used in stadiums to represent the trend:

• Fans are using a real-time texting platform to book seat upgrades without an app. This makes switching to better seats quick and easy, while stadiums optimize capacity utilization.
• One startup uses AI to analyze the purchase probability index of visitors. Fans receive targeted offers for tickets and merchandise, which personalizes the fan experience and increases sales.
• A new platform connects fans for a shared journey to the match day, a car-sharing service in the sports context.

And from the stands to the pitch: artificial intelligence (AI) is fundamentally changing talent scouting and training. The importance of data-based analyses and AI-based tools is growing rapidly. AI-supported data analysis enables teams to evaluate athletes more precisely and provide targeted support. Athlete Management Systems (AMS) support the monitoring and personalization of training programs and help clubs to develop young talent in a structured way.

Recent examples of this trend:

• One provider uses AI to analyze training data and develop targeted recommendations for athletes - FC Barcelona's youth team is said to already be using it.
• A start-up's LiDAR-based tracking system provides detailed movement data such as acceleration or deceleration.
• A new 3D tracking technology analyzes player and ball movements for performance analysis. By integrating it into the fan experience, it also offers immersive experiences.

Analysts from Market Research Future estimated the size of the market for AI in sport alone at USD 4.6 billion in 2024, with the market set to grow to USD 27.9 billion by 2032. An estimate that includes products for all target groups: Athletes, clubs - and fans. Artificial intelligence, and this is no great surprise, will be everywhere.