- ATSN finds that sports tech company creation has grown by 11.8% per annum in the past decade
- 90% of companies headquartered in Victoria, New South Wales and Queensland
- AI, Web 3.0 and metaverse among top emerging trends presenting new opportunities
Australia’s sports technology sector is now worth AUS$4.25 billion (US$2.78 billion), putting it equal in value with the country’s financial technology sector, according to a study by the Australian Sports Technologies Network (ATSN).
The ‘Sports Innovation Report for 2023’ uncovered 758 companies that make up Australia’s sports tech ecosystem, which employs 13,438 people, and found that company creation in the sector has grown by 11.8 per cent per annum in the past ten years.
The report identified 115 companies as ‘industry leaders’, including 2XU, SWEAT, VULY and PTP, which together generated around 87 per cent of the total sector revenue.
The ATSN identified ten major themes providing strategic opportunities for the industry, including environmental, social and governance (ESG) and smart apparel, which have accelerated digital transformation across leagues, teams and federations globally in recent years.
The report also noted a rapidly growing sports tech ‘cluster’ along Australia’s eastern seaboard, with 90 per cent of companies headquartered in Victoria, New South Wales and Queensland. Victoria continues to lead the way as the backbone of Australia’s sports tech sector, with 41 per cent of these companies based in the state. However, the ATSN stated there remained plenty of opportunity for other states to make their mark in the sports tech sector ahead of the Brisbane 2032 Olympic and Paralympic Games.
Other key findings in the report include a decline in merger and acquisition (M&A) and capital raising activities in the 2023 financial year compared to 2022. This is due to the significant tightening of access to investment capital, driven by rising interest rates and inflationary pressures. M&A activity has slowed to around AUS$500 million (US$327 million) in 2023, compared to more than AUS$1 billion (US$654 million) last year, according to the ATSN.
The mass participation and active living market is dominating the sports tech sector, with the ASTN noting the majority of companies (56 per cent) provide their products and solutions to this space, followed by the business of sport and entertainment market (46 per cent) and professional and elite sport (14 per cent).
The report added that the bulk of companies (66 per cent) develop their solutions using information and communication technologies (ICT), followed by advanced materials (23 per cent) to build their products.
In terms of emerging sports tech trends, the ATSN listed artificial intelligence (AI), active living, fitness and wellness, Web 3.0, the metaverse, gaming and blockchain, virtual sports of tomorrow, and smart apparel, equipment and wearables as their top picks for presenting new opportunities. The report also identified ESG, sports digital ethics, privacy and security, women in sports tech, investment and venture capital, and global trade and business matching.
Looking ahead, the ATSN predicts Australia’s sports tech sector will continue its upward trajectory and enjoy sustained growth with a new wave of technologies emerging in preparation for Brisbane 2032. This is expected to be mirrored internationally, with the global sports tech industry, which was estimated to be worth US$22.9 billion in 2022, set to grow by 13.8 per cent annually to more than US$41.8 billion by 2027.
“Rapid growth in sports tech is reshaping the sports industry as we know it and unlocking new revenue streams,” said Dr Martin Schlegel, chair of the ASTN.
“Australia’s sports tech sector has proved it has now moved out of its nascent stage as it goes head-to-head with Australia’s booming fintech sector. Australia continues to prove that it’s one of the world’s leaders and long-term pioneers in sports technology and innovation.
“The sector has exceeded all expectations in this year’s report as the sector surpasses AUS$4 billion in revenue.”
