ARTIFICIAL INTELLIGENCE IN SPORTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Artificial Intelligence in Sports Market Size and Trends

The Global Artificial Intelligence in Sports Market is estimated to be valued at US$ 6.12 Bn in 2024 and is expected to reach US$ 30.98 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 26.1% from 2024 to 2031.

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The global Artificial Intelligence in Sports market is expected to witness significant growth during the forecast period. This is mainly due to the growing adoption of advanced technologies such as ML and computer vision by sports organizations and teams. AI helps in strategic player performance analysis, injury detection, game strategy analysis, personalized coaching and scheduling, and real-time stats for fans. AI virtual assistant and chatbots are also gaining popularity for enhancing fan experience. Moreover, rising investments by tech giants to develop innovative AI solutions for sports is another key factor driving the market growth. However, the lack of skilled workforce and data privacy & security concerns could hamper the market growth to some extent during the forecast years.

Expanding use of analytics and data science

The integration of data science and advanced analytics techniques is one of the major drivers fueling the growth of the artificial intelligence in sports market. Sports organizations are generating vast amounts of data from various sources such as player biometrics, game stats, videos, social media, and more. Analyzing this wealth of data can provide valuable insights to gain a competitive advantage. AI and machine learning algorithms are allowing teams and coaches to analyze player performance, predict injuries, assess risk factors, develop simulation models for scenario planning, and optimize strategies. Advanced data analytics using AI is also improving the fan experience. It enables better media coverage, personalized recommendations, and enhanced in-game experiences. The ability of AI to capture, organize and derive intelligence from large, diverse sports data sets will help stakeholders maximize returns on their investments.

Market Concentration and Competitive Landscape

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Increasing adoption of smart wearable devices

The growing adoption of smart wearable devices in sports is another key factor fueling the Artificial Intelligence in Sports market. Technologies like smart watches, fitness trackers, and virtual/augmented reality gear allow precise tracking of biometric metrics of players including heart rate, sleep patterns, calories burned, distance covered, speed variations, and more. When combined with AI, these devices can generate personalized insights. They are also enabling new immersive fan experiences. Sports organizations are actively collaborating with wearable companies to gain competitive advantages. Such data-driven abilities of AI-enabled wearables are enhancing player performance and driving their widespread acceptance in various sports.

Key Takeaways from Analyst:

Another key opportunity lies in enhancing the fan experience. AI presents ways to personalize the sports viewing experience through recommendations, highlights, predictions, and virtual/augmented reality. This deeper engagement through AI and data analytics can help sports organizations increase revenues through higher viewership and merchandise sales.

However, high initial investment and costs for implementing advanced AI technologies could act as a restraint. There are also challenges around data privacy and regulating the use of data. Regions like North America and Europe currently lead in AI spending and investment for sports. Meanwhile, Asia Pacific is witnessing significant interest from countries wanting to utilize AI to improve player performance and drive sports industries.

Going forward, the market expect to see an increasing focus on AI-powered analytics, predictive modeling, and simulations. Adoption will be driven by top leagues and clubs looking to gain competitive advantages. Applications involving biomechanics, injury prevention and recovery are also likely to see strong growth.

Market Challenges: High costs of AI solutions

The high costs involved in the deployment and adoption of AI solutions is one of the major factors restraining the growth of global artificial intelligence in sports market. Developing advanced AI models require huge investments in R&D, data collection, training of algorithms and employing skilled workforce such as data scientists and engineers. These excessive costs make AI technologies out of reach for many smaller sports organizations and leagues who have limited budgets.

Market Opportunities: Scope of AI in enhancing sports experience of disabled athletes

The use of AI has immense potential to enhance the sports experience of disabled athletes and create greater opportunities for inclusion. Advanced technologies can help disabled individuals overcome physical limitations and adapt sports equipment to assist them in competing at an equitable level with their non-disabled peers. For example, AI powered prosthetics and exoskeletons are allowing paralympic athletes to run and move with enhanced agility, speed and precision. Similarly, advances in visual and audio aids are helping athletes with visual or hearing impairments to better sense their environment and competitors during gameplay.

Going forward, as AI capabilities continue to progress, the market may see more personalized solutions that are tailored specifically for individual types of disabilities. Advanced analytics and sensors and be integrated into sports equipment and venues to gain a deeper understanding of each athlete's unique abilities and limitations. This data can then be leveraged to simulate fair competition and simulate realistic scenarios to help improve training. Robotic technologies may also assist with tasks like coaching, feedback and making on-the-fly adjustments to equipment in response to an athlete's physical output or changing conditions.

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Insights By Component - Software Dominates Due to its Robust Capabilities

In terms of Component, the Software segment is estimated to hold 58.3% share of the market owing to its robust capabilities to handle a wide range of tasks associated with artificial intelligence in sports. Software tools leverage sophisticated algorithms and machine learning models to process extensive data streams from diverse sources, including sports video footage, sensor data from venues and equipment, and social media. This capability facilitates in-depth statistical analysis of players, teams, and matches, enabling accurate outcome predictions and performance enhancement. Additionally, software solutions support simulation and virtual reality training for athletes, while providing coaching staff with advanced tactical analysis. With cloud-based deployment, these tools can be easily updated and scaled to meet the evolving demands of the sports industry. Furthermore, software licensing presents a more cost-effective alternative for organizations compared to the expenses associated with hiring specialized professionals or developing in-house AI teams.

Insights By Deployment - Cloud-based Deployment Leads in Agility and Scalability

In terms of Deployment, the Cloud-based segment is estimated to hold 55.1% share of the market owing to its unmatched agility and scalability. Cloud models allow artificial intelligence solutions in sports to harness massive amounts of computing power on-demand based on real-time needs. This helps sporting organizations avoid hefty and recurrent infrastructure and maintenance costs of on-premise servers. Cloud technology facilitates continuous upgrades of AI tools through the latest algorithm and model enhancements provided by vendors. Its pay-as-you-go pricing model is particularly advantageous for budget-constrained sports teams and leagues, offering a more flexible alternative to the lengthy procurement processes associated with on-premise licenses. Additionally, cloud solutions enable 24/7 global access to AI capabilities via web and mobile platforms, supporting remote coaching and training initiatives.

Insights By Application - Data Analysis Dominates Through Deeper Insights

In terms of Application, the Data Interpretation & Analysis segment is estimated to hold 40.1% share of the market owing to its ability to generate deeper strategic insights. Sports AI tools evaluating massive historical and real-time data sources can recognize intricate patterns to predict individual player and team performance with greater accuracy. Coaching staff leverage these insights to develop strategic recruitment, training, and tactical plans. Concurrently, comprehensive data analysis enables teams and leagues to enhance fan engagement through targeted marketing strategies, customized ticket pricing, and tailored merchandise designs. Moreover, data analytics tools are increasingly employed to adjudicate close finishes in matches by analyzing high-frame-rate video data. These objective assessments have improved transparency and resolved disputes in numerous instances.

Regional Insights

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North America has been dominating the global artificial intelligence in sports market with an estimated 35.7% share in 2024. The presence of major tech companies and sports organizations in the region is the primary reason behind its dominance. Countries like the U.S. and Canada have strong technology infrastructure and several top universities focused on AI research. As a result, they produce highly skilled workforce which is utilized by the tech giants for developing sophisticated AI products and solutions for sports.

Furthermore, top leagues of major sports like NFL, NBA, MLS, etc. based in North America are early adopters of AI technologies. They are investing heavily in implementing various AI platforms for improving player performance, enhancing fan engagement and gaining insights into the game. For example, NBA has partnered with SAP to develop customized analytics solution for coaches and players. Such active adoption of AI at professional level encourages amateur clubs and organizations to also incorporate AI-powered tools in their system.

Moving from the dominating region, Asia Pacific has emerged as the fastest growing regional market for artificial intelligence in sports. Countries like Indonesia, Thailand, Vietnam, Malaysia, and Philippines are witnessing rapid growth in their economy and sports industry. With increasing internet and smartphone penetration in the region, there is a surge in interest among amateur clubs and individual players to adopt AI-based solutions. They ensure accessibility of such tools for players at all levels to analyze their games and optimize performance.

Additionally, growing local manufacturing capabilities of hardware and availability of software developers in Southeast Asian countries is attracting global tech companies to establish R&D centers. This helps in the localized development of customized AI products as per the requirements of sports organizations and players in the region. Overall, a perfect mix of economic growth, rising sports engagement and improving local tech capabilities is fueling the fastest growth of Asia Pacific in the global artificial intelligence in sports market market.

Market Report Scope

Key Developments

• In November 2023, Loughborough University and Signify Group, a global leader in leveraging AI to combat online abuse and threat, announced a strategic partnership to collaborate on academic research into online abuse in sports. Signify has a proven track record in the sector, conducting high-profile projects with leading organizations in international football, tennis, cricket, esports, rugby, basketball, and athletics.
• In October 2023, IBM, a leading provider of global hybrid cloud and AI solutions, and ESPN announced their continued use of AI models built with Watsonx to transform fantasy football data into insights. These models are expected to generate more than 48 billion insights for fantasy managers this year, including recommendations for mutually beneficial trade opportunities and identifying waiver wire players best suited to meet specific team needs.
• In October 2022, Veritone, Inc., a leader in enterprise artificial intelligence (AI) solutions, launched SPORTX - an intelligent marketplace that enables sports federations, leagues, and content producers to license short-form sports video content to media buyers worldwide. SPORTX uses Veritone's AI-powered platform to automatically index, tag, and deliver rights-cleared video assets to buyers, allowing them to efficiently access and utilize the content for editorial, highlights, and digital purposes such as news, social media, and user-generated content. This new platform provides sports rights holders with an opportunity to maximize the monetization of their digital assets and reach new audiences globally.
• In May 2023, Sportradar, a leading global sports technology company, announced significant investments in advancing its artificial intelligence (AI) and machine learning capabilities to drive innovation in the sports betting industry. By automating data collection through digital systems, Sportradar is able to gather deeper, more comprehensive insights into sports events and athlete performance. This enhanced data enables Sportradar to create new value-added products and services for its sportsbook operator clients, helping them optimize trading, risk management, and customer engagement strategies.
• In October 2022, Epoxy.ai, an AI/ML-based personalization technology company providing tools to help sports leagues, betting companies and media entities develop new forms of customer acquisition, engagement and retention, announced the launch of Audience Cloud - the gaming industry's first sports media and betting-specific insights platform. Audience Cloud leverages purpose-built AI to provide an ongoing, comprehensive view of sports fan behavior, enabling enhanced data-driven analysis to optimize sports gaming and media experiences.

*Definition: The Global Artificial Intelligence in Sports Market refers to the use of advanced computing technologies like machine learning, deep learning and neural networks to analyze sport's data. It assists athletes, teams, leagues and federations in areas like advanced scouting, player training, health monitoring, match analysis, fan engagement, and fraud detection. The AI solutions provide valuable insights to improve performance, gain competitive advantage, enhance fan experience, reduce injuries and generate more revenue for the sports industry globally. The market is growing rapidly as investment in AI for sports is increasing.

Market Segmentation

•  Component Insights (Revenue, US$ Bn, 2019 - 2031)
  • Software
  • Services
•  Deployment Insights (Revenue, US$ Bn, 2019 - 2031)
  • Cloud-based
  • On-Premises
•  Application Insights (Revenue, US$ Bn, 2019 - 2031)
  • Player Analysis
  • Fan Engagement
  • Data Interpretation & Analysis
  • Others
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Amazon Web Services, Inc.
  • Apple Inc.
  • Catapult Group International Ltd
  • Fujitsu Limited
  • Google LLC
  • IBM Corporation
  • Intel Corporation
  • Microsoft Corporation
  • Movella Holdings Inc.
  • NEC Corporation
  • Oracle Corporation
  • Perform Group
  • Qualcomm Technologies, Inc.
  • Salesforce.com Inc.
  • SAS Institute, Inc.