Sports Events Market: A Global Growth Story

The global sports events market is experiencing significant growth, driven by factors like increasing disposable income, a burgeoning middle class, and the rising popularity of major sporting events. According to a new report by Allied Market Research, the market, valued at $184.61 billion in 2021, is projected to reach a staggering $609.07 billion by 2031, exhibiting a robust compound annual growth rate (CAGR) of 10.5% from 2022 to 2031.

Key Market Drivers and Opportunities:

Several factors are contributing to this expansion. The growing sports events industry, rising per capita income, and increasing disposable income are key drivers. Furthermore, the widespread appeal of major events like the Olympics and the Cricket World Cup, coupled with increasing digitization in developing economies like China and India, are fueling market growth. The increasing adoption of digital ticketing and the global proliferation of smartphones present significant opportunities for the market.

Lacrosse, one of the oldest team sports in the world has been recently driven into the mainstream by Professional Leagues and the World Lacrosse organization, landing a spot in the 2028 Olympic Games in Los Angeles, drastically accelerating investments and valuations within this category.

Challenges and Segmentation:

Despite the positive outlook, the market faces challenges, including the volatility of ticket pricing and the complexities of price management.

The market is segmented by revenue source, age group, and region. In 2021, the tickets segment dominated the market, generating $63,865.1 million in revenue and is projected to reach $202,205.6 million by 2031, growing at a CAGR of 10.0%. The convenience and transparency offered by digital ticketing are major contributors to this growth, reducing black ticketing practices.

By age group, the 21 to 40 years segment held the largest market share in 2021, accounting for approximately 49% of the market. This segment is also expected to witness the highest CAGR of 11.1% from 2022 to 2031, driven by the active participation of this demographic in various events, including exhibitions, conferences, sporting events, seminars, and concerts.

Regional Dominance and Key Players:

North America led the market in 2021 and is expected to maintain its dominance throughout the forecast period. The region's high revenue share, exceeding 50% in 2020, is largely attributed to the increasing viewership of sports beyond football in the United States. The popularity of leagues and relatively newer professional organizations such as the UFC, and the PLL, long-standing pro teams like the Los Angeles Lakers, and Golden State Warriors, both digitally and through in-person events are significantly contributing to this growth.

Growth Prospects and Emerging Trends:

Several key trends are shaping the future of the sports events industry:

• Global Sporting Events: Major international events drive significant demand and boost local sports industries.

• Technological Advancements: VR, AR, and advanced broadcasting technologies are enhancing fan experiences and driving demand.

• Fan Engagement:  Organizations are focusing on personalized experiences and digital integration to attract and retain fans.

• Economic Impact: Global economic factors play a crucial role in the market growth of specific teams, organizations.

• Health and Wellness: Growing health awareness is increasing participation in various sports and fitness activities. Pickleball is a great example of this factor.

• Esports: The rise of esports is creating new opportunities for event organizers and sponsors.

These trends are expected to shape the future of the sports events market, creating new avenues for growth and innovation, including heavy integration into the K-12 educational system.