2023 was an influential year for the business of sports, especially in Asia. Correspondingly, with the welcoming of the new year of 2024, we are thrilled to outline some of our major predictions on how the sports industry will evolve and continue to thrive throughout 2024.
Here are the trends we’ve identified as crucial to watch in 2024:
- AI AND AUTOMATION BECOME A MUST-HAVE
- ESPORTS MAKES A SWIFT RECOVERY
- STADIUMS EVOLVE INTO SOMETHING GREATER
- SPORTS MEDIA REVOLUTION CONTINUES
- SPORTS TECH CONSOLIDATION GAINS MOMENTUM
- DATA IN SPORT TAKES CENTRE-STAGE
Besides the key trends above, we will also highlight some trends that should be on your radar in 2024:
- Cybersecurity in sports
- Fan Engagement and Personalization
- Women’s Sports going to the moon?
- Celebrity ownership skyrockets
The above predictions will potentially create another hugely influential year into the sports world so without further ado, let’s get started!
AI AND AUTOMATION TRANSFORMING THE SPORTS LANDSCAPE IN 2024
In the rapidly evolving landscape of 2023, we saw automation and GenAI-processing solutions emerge as transformative forces, transcending digital maturity levels and operational objectives across diverse sectors.
2024 is going to see the integration of AI as a pivotal pillar in sports executives’ data interpretation processes, facilitating the conversion of digital fans into paying subscribers and enriching commercial strategies through the creation of personalized content that resonates with stakeholders and sponsors.
Pioneering partnerships between AI & Sports, like Arsenal Women & intelligent automation company ABBYY, will supercharge strategic AI adoption and integration in sports > enhancing fan experience on matchdays and at home, while streamlining on & off field activities for higher efficiency and income.
(Picture: Breakthrough)
As sports entities engage AI firms through sponsorships, anticipating enhanced fan interaction and centralized data access, major Clubs such as Manchester United and FC Barcelona are already showcasing AI applications like chatbots providing streamlined interactions, offering instant responses and personalized content.
AI algorithms analyze fan data to create tailor-made content, from news articles to videos, enhancing fan connection and providing clubs with valuable insights into fan preferences.
AI won’t take our sports jobs yet, but it is certainly unavoidable in 2024. With it’s vast potential to impact and improve both sports business and performance, success will be dependent on strategy and investment.
ESPORTS COMING OUT OF ITS ‘WINTER PERIOD’ STRONGER THAN EVER
In 2024, the gaming industry is set for significant growth, driven by augmented reality (AR) and virtual reality (VR) technologies, AI, and machine learning (ML).
Quest 3 leads in VR, outpacing PSVR 2 and Apple Vision Pro due to cost and compatibility issues. The global esports market, valued at US$1.3 billion in 2022, reached US$1.7 billion in 2023 and is expected to hit US$4.3 billion by 2024. Cloud gaming, powered by 5G, enhances accessibility.
FaZe Clan’s collapse, once valued at over $1 billion, ended in a $17 million all-stock acquisition by Gamesquare in October 2023, exposing financial challenges in esports. European and Asian esports teams, with a more sustainable growth approach, are closer to profitability. Despite financial issues, esports clubs are attracting newer sponsors going into 2024.
The 2023 League of Legends World Championship in South Korea set records with 6.4 million concurrent viewers and a 1.3 million average during its 116-hour run.
In 2024, industry optimism aligns with Asian fan interest, predicting an 8% annual growth in the esports audience, reaching 640 million spectators by 2025. China remains a key player, contributing 400 million fans to the total in Asia.
EVOLUTION OF STADIUM EXPERIENCES AND INNOVATIONS IN 2024
The evolution of modern stadiums reflects a shift towards versatility beyond sports, with European football giants like FC Barcelona investing €1.5bn to make Camp Nou a versatile year-round entertainment hub. Real Madrid invested €1.2bn on their Santiago Bernabéu stadium, showcasing a retractable roof and underground pitch storage.
Innovations, including retractable roofs as seen in Tottenham’s £1bn stadium, inspire clubs like Manchester City to elevate fan experiences and generate additional revenues through a reinvention into entertainment destinations.
The smart stadium market is projected to reach $34.5 billion in 2028, driven by the demand for technologically advanced venues due to the rise in sporting events. In Asia, 81% of stadium operators aim to integrate IoT for streamlined administration and improved fan experiences.
Fans’ desire for a more immersive experience from stadiums has fostered the growth of innovations like PACIFA’s 3D virtual venue technology and mobile ticketing, completely transforming the ticket-buying process.
(Picture: AST Partner: PACIFA)
It’s not just about commercial gains, as exemplified by the Golden 1 Center in it’s use of IoT to enhances player performance with real-time data on player movement.
In 2024, Asian states will continue to strategically invest in sports infrastructure to boost sports tourism, economic diversification and competitiveness in hosting international events. Notable projects include the Hangzhou International Sports Centre, Anil Agarwal International Cricket Stadium, Sheikh Hasina International Cricket Stadium, Rafi Cricket Stadium, Kai Tak Sports Park, and new Riyadh, Qiddiya, and Dammam Stadiums.
Additionally, there’s a focus on the renovation of four other venues for the 2027 AFC Asian Cup in Saudi Arabia. AST has previously highlighted these significant projects, reflecting the region’s commitment to fostering sports infrastructure and events.
SPORTS MEDIA REVOLUTIONS & DEEPER FAN ENGAGEMENT FOR ASIAN FANS
The global sports media industry is on the brink of surpassing US$60 Billion – with 2023 seeing a plethora of landmark deals and results.
NFL Game Pass International’s focus on personalized viewing, access to live games, events, and international first-party data led to a transformative rights sale to DAZN in 2023, emphasizing Fan Value and CLV (with their 80% annual subscriber retention) in sports media rights.
MLS’s $2.5-billion deal with Apple targets Gen Z and millennials, while Formula One’s use of non-live media through OTT has proliferated to every major sports rightsholder.
In Asia, sports media experiences significant growth, highlighted by the IPL signing record deals for both TV & Digital broadcast for upwards of a whopping US$6 Billion (2023-27). F1 TV Pro launched successfully in India, showcasing industry efforts to hold out for broadcasters willing to meet the expected media rights valuations.
The shift to OTT streaming, seen in One Championship’s collaboration with Amazon Prime Video, emerging platforms like SportRadar’s OTT, and the K-League, broadens audience engagement and provides data for advertisers.
The trajectory of sports media in Asia in 2024 promises continued growth, fostering innovation, data-driven strategies, and brand building amid the dynamic shift to OTT platforms.
ACCELERATION OF SPORTS TECH CONSOLIDATION
Recent data shows the global sports tech sector generated $10.1 billion in Q3 2023, with 317 transactions. In the dynamic sports tech realm, 2024 will be pivotal, marked by a flurry of strategic investments, platform partnerships, mergers and consolidation.
Greenfly’s acquisition of Miro AI strengthened its position with MLB, PGA Tour, and Real Madrid partnerships, enhancing fan experiences.
TeamSnap’s acquisition of MOJO Sports enriches youth sports tech, and ai.io’s acquisition of Intel’s 3D Athlete Tracking positions it as a global marker-less motion capture leader.
Game Theory’s Matchday.ai acquisition introduces computer vision and AI to casual sports, validating technology for everyday players, reflecting a transformative wave in sports tech.
(Picture: Intel)
Movella Holdings and Teamworks’ partnership integrates athlete movement analytics, redefining movement digitization.
Liberty Media’s US$282 million takeover of QuintEvents emphasizes tech integration’s multifaceted nature.
The 2024 forecast anticipates increased activity in fan engagement, AI, ticketing, and venue management, reaffirming sports tech’s outperformance. This collective momentum solidifies 2024 as a landmark year for sports technology.
DATA IN SPORT TO TAKE CENTER STAGE
The Sports Analytics Market in 2024 is poised for exponential growth, driven by the integration of data science, artificial intelligence, and advanced analytics. This surge is fueled by sports organizations and franchises increasingly relying on analytics to gain a competitive advantage and optimize player potential.
In the realm of sports analytics, there is a growing interest in both amateur and professional athlete data. Advanced wearable and tracking devices play a crucial role in performance tracking and biometrics, providing real-time insights into metrics such as speed, distance covered, heart rate, and fatigue levels for performance optimization.
(Picture: Medium)
Predictive and prescriptive analytics, driven by data-driven algorithms, are utilized to predict game outcomes, suggest optimal strategies, and prevent injuries, empowering coaches with informed decisions.
Video and image analytics, featuring sophisticated tools, contribute to player scouting, opponent analysis, and referee decision-making, offering comprehensive insights into game dynamics and strategy.
This technological evolution is not only evident in professional sports franchises but also extends to broadcasters and media outlets using analytics to enhance sports coverage with data-driven insights, interactive statistics, and engaging visualizations for viewers.
Beyond these anticipated opportunities, AST spotlights a few must-follow trends for your radar in 2024.
From celebrities steering sports ventures to the ever-evolving landscape of cybersecurity, and the personalized embrace of fan engagement, explore uncharted territories shaping the sports horizon.
OTHER TRENDS TO WATCH:
- CELEBRITY OWNERSHIP TO SKYROCKET
Celebrities like Ryan Reynolds and Rob McElhenney built on their success at Wrexham AFC with F1 team Alpine, alongside Michael B. Jordan, Anthony Joshua, and Trent Alexander-Arnold. Simultaneously, TMRW Sports, backed by Justin Timberlake and “Ninja,” has attracted significant investment.
Tiger Woods and Rory McIlroy’s involvement in TMRW Sports’ venture, The Golf League, indicates a shift toward modern fan experiences. The sports industry showcases innovation, transformative technologies, and celebrity entrepreneurs, while in esports, notable names like Lionel Messi, Diogo Jota, Danill Medvedev, and Vinicius Junior strategically invested to tap into engaged fan bases to create innovative revenue streams.
- WOMEN’S SPORTS
Deloitte forecasts global revenues for women’s elite sports to exceed $1 billion for the first time in 2024, indicating a significant shift towards increased financial support. In preparation for the 2025 World Cup in England, strategic actions are vital to seize emerging opportunities and foster collaborations in women’s rugby.
Michele Kang, owner of Washington Spirit, acquired London City Lionesses, ushering in a new era of multi-club ownership and private investment in women’s football. The objective will be to improve infrastructure, broaden the fanbase, and incorporate advanced technologies.
- CYBERSECURITY IN SPORTS BECOMES ESSENTIAL
In 2024, global sports organizations, prompted by the 2021 cyber attack on Manchester United, will prioritize cybersecurity with over 80% relying on online systems. The Japanese Olympic Games showcased AI’s effectiveness against cyber threats, while Paris 2024 has deployed over €17 million for comprehensive cybersecurity, reflecting insights from major athletic events.
- ENHANCED SUSTAINABILITY IN SPORTS BUSINESS
In the 2023 Asian Games, a focus on sustainability was evident with the use of renewable resources, highlighting the potential for eco-friendly major events. Craig Levine, Co-CEO of ESL FACEIT, notes that 2024 marks a shift towards sustainability in the esports industry, driven by decreasing renewable energy costs, and anticipates increased profitability for organizations adopting eco-friendly infrastructures.
- FAN ENGAGEMENT AND PERSONALIZATION
In 2024, sports properties are poised to better partners for brand marketers, emphasizing their unique ability to capture high-quality fan data. The fan experience economy evolves with Generation Z and affluent consumers reshaping analytics-driven experiences through personalized content, gamification, and augmented reality; enhancing fan involvement with sports events.
In retrospect, 2023 set the stage for a transformative period in the sports industry, particularly across Asia. As we embrace 2024, our predictions foretell a year of unprecedented evolution and prosperity for the sports landscape.
As we traverse this exciting journey into 2024, the sports industry beckons with promises of innovation, engagement, and growth. Stay tuned as we navigate through these trends, contributing to yet another influential chapter in the ever-evolving world of sports.
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