The sports-tech industry is expected to grow at a CAGR of 13%, from Rs 26,700 crore in FY24 to Rs 49,500 crore by 2029, as per FIFS-Deloitte report titled ‘Beyond the Field: India’s Sports Tech Revolution’. The report developed by Federation of Indian Fantasy Sports (FIFS) in partnership with Deloitte highlights that the Indian Fantasy Sports industry, a part of the Fan Engagement sub-sector, is the largest contributor to the sports-tech industry in India with revenues touching Rs 9,100 crore in FY24.
The sector however is bracing for impact as a result of the change in GST laws. Not only is the sector expected to de-grow by 10% in FY25, but the industry is also expected to post a reduced CAGR of 7% for FY24 to FY29, compared to the earlier forecasted CAGR of 30% for FY22 to FY27. This degrowth is driven by almost 50% hit on the FS companies’ margins as a result of companies absorbing the impact of increased GST. Further, the risk of retrospective taxation has made the investors wary of the sector with the investments going down by 90% in 2023 and no new investments being made in the sector in 2024.
Talking about the report, Joy Bhattacharjya, Director General, FIFS said, “The sports technology industry in India is poised to unlock new levels of athletic excellence, fan engagement and overall growth in the sports industry. It can be a critical lever in elevating the sports experience for both the fans and athletes. As India progresses in its sporting prowess, technology will play a key role in improving athlete performance, enhancing fan engagement to make sports a mass movement and enabling early identification and nurturing of talent. This combined with the development of world-class sports infrastructure will be pivotal in making India a sports superpower.”
Moreover, sports play a vital role in shaping the culture, economy and identity of a nation. Fans and sportspersons form the core of the entire sports ecosystem and are the primary driving force behind the advancement and popularity of sports. The Government through the Draft National Sports Policy 2024 has reinforced its aims to strengthen the sporting culture and ecosystem from the grassroots to the national level and leveraging sports for economic development.
Prashanth Rao, Partner Deloitte India said, “India’s sports technology ecosystem is at an inflection point, with the market projected to grow at a 13% CAGR to Rs 49,500 crore by FY29. Technology especially with the advent of digital, is not only providing data for enhanced athlete performance but is also creating immersive fan experiences, leading to increased multi-sport following across demographics and opening newer avenues of business and business-led collaboration. Fantasy Sports continues to be a key driver in this evolution, fostering deeper engagement and community building while also contributing significantly to employment generation and economic impact, with the industry expected to post a CAGR of 7% until FY29 and create 17,500 direct and indirect new jobs by FY27.”
Sports Technology will play a key role in realising this objective by enhancing the experience for sports fans and analysing and improving athlete performance and training. While the sector is still in its nascent stage in India and poised to grow, there is already significant technology adoption in areas such as fan engagement, sports gaming, and data and analytics-based decision-making.