India's sports landscape is set to undergo a profound transformation, with projections indicating that the industry could reach a valuation of $130 billion by the year 2030. This ambitious forecast emerges from the report titled ‘Think Sports: Unlocking India’s $130B Sports Potential’, released earlier this year by Google and Deloitte. The anticipated 14% compound annual growth rate (CAGR), almost double the pace of the country's GDP, reflects significant changes in the way Indian consumers engage with sports.
Key driving forces of this transformation include increased government funding, an ascendant multi-sport culture, widespread digital adoption, and a surge in quality sports-related content. The report details not only the economic implications of this growth but also highlights the potential for social change, such as fostering youth development and empowering communities. It further posits that the sports sector in India could create around 10.5 million jobs and generate $21 billion in indirect tax revenue by 2030.
Rohan Padha, a partner at Deloitte, elaborated on critical growth trends influencing the industry. He noted the "rising government investment in sports," citing that the sports budget has expanded by 1.6 times over the last five years. Moreover, current infrastructure projects valued at $2.39 billion are now integral to the National Investment Pipeline.
In addition to traditional avenues, he underscored the dramatic shift toward digital content consumption. A staggering 90% of Indian sports fans report using digital platforms to access sports, with the increase in smartphone and internet penetration driving this trend forward. The report notes that sports-related films and documentaries saw a significant increase in production, up 47% from 2017 through 2024 compared to the previous period.
As a part of this evolving ecosystem, esports are also gaining traction. State governments in regions such as Meghalaya, Uttar Pradesh, Tamil Nadu, and Gujarat have announced plans to establish esports tournaments, signalling a growing recognition of gaming as a legitimate competitive arena. However, Padha noted that the current landscape needs more tournament opportunities to make esports a viable career path, with the number of events in 2023 anticipated to rise from 22 to 35.
In terms of revenue generation, the impact of digital streaming models is also noteworthy. The industry has welcomed a new revenue stream, with media rights for both TV and digital valued similarly during recent auctions. Emerging pricing models, like one-time payments for single events, aim to broaden access to a wider audience.
Technological advancements, including AI and augmented reality, are reshaping the industry, allowing for innovations such as automatic ball and player tracking and extensive video data analysis. Furthermore, the report indicates that Gen Z's digital-first approach is opening novel commercial avenues in the sports sector. Non-live content, including highlights and podcasts, is currently outperforming live content consumption by 20% across all demographics.
Shifts in consumer behaviour reveal distinct preferences among Generation Z compared to their millennial and Generation X counterparts. Notably, 41% of Gen Z use smartphones as their primary device for live content—a higher percentage than other generations—indicating a preference for mobile engagement. Additionally, Gen Z fans average 6.6 hours weekly engaging with sports content and show a strong willingness to purchase merchandise influenced by advertising during sporting events.
Interesting emerging sports, such as Pickleball and Padel, reflect changing audience dynamics, with 90% of fans expressing interest in multiple sports beyond cricket. While cricket continues to account for approximately 90% of sports viewership and revenue in India, the overall market is poised for diversification, with non-cricket sports likely to develop larger fanbases in the coming years.
Amidst varying successes of different sports leagues, lessons learned suggest that leveraging technology for enhanced fan engagement and creating incentives for sponsors are key strategies for emerging sports to flourish. High-quality non-live content and unique value propositions may be pivotal in attracting and retaining audiences.
Finally, with increasing interest in sports tourism, there are notable opportunities for branded content, especially in on-ground experiences that extend beyond traditional advertising avenues. As the demand for immersive and engaging fan experiences continues to rise, the monetisation potential for offline channels will likely become an area to watch in the coming years.
Source: Noah Wire Services