You Will Never Believe These Bizarre Truth Behind Sports Analytics Software Development

 It is a sports industry that has seen many unprecedented challenges in 2020. Find out in our latest blog here why 2021 is the perfect time to get into the sports industry.

If you love sports, now is a good time to start a business.

We have just experienced one of the largest periods of growth in the history of the industry, with an average growth of 4.3% since 2014. The sports software industry was valued at nearly $488.5 billion in 2018 and is now growing to an estimated $500 billion.

Of course, these numbers alone cannot explain the drivers of the explosion and (especially for entrepreneurs) cannot determine where the money is now or whether it will continue to flow.

To answer these questions, we first need to break down the industry into its components and see which of the key players are violating the objectives.

What is the $500 billion sports industry made of and which sectors are growing the fastest?

The sports industry is very diverse and includes all income-generating activities from sports, from television broadcasting to fitness, ticketing, betting and advertising to sponsorships or merchandise.

The economic research firm has just published an extensive research report that analyzes the growth of the sports training software industry from 2014 to today and forecasts trends for the next two years.

For their research, they divided the industry into two main sectors, depending on the type of engagement:

Participation (fitness and recreation centers, public sports, sports facilities such as local golf clubs, marinas, gyms, personal training, etc.)

Audience (sports clubs and teams, event revenue, media rights, sponsorship and merchandising)

Of these, the participation sector has the largest share in the sports market - about 56%. Of all the different types of businesses in the sector, fitness and leisure centers dominate, accounting for around 40% of the total participating sports sector.

The spectator sports sector is projected to be the fastest growing sector of the two, with a forward growth rate of 5.9%. Media rights revenue had the largest share in this area at 23.7% in 2018, and the merchandising market is expected to grow at the fastest 7% in the future.

Sports with the largest share in the financial market:

As mentioned earlier, the total value of the sports industry is estimated to be around $500 billion. Nearly half of this turnover is generated by the spectator sports sector. Competitive sports and all the businesses around it generate sales of about 250 billion dollars every year.

Each sports analytics software development has a $250 billion percentage market share in professional sports. It is not surprising that association football (soccer) ranks first with a large majority. Anyone who follows a big "super club" like Real Madrid will know that football attracts a lot of investment and a large global audience.

Football / association football (43%)

American football (13%)

Baseball (12%)

Formula 1 (7%)

Basketball (6%)

Ice Hockey (4%)

Tennis (4%)

Golf (3%)

Strongest developing countries in 2020 and beyond.

The emergence of new markets in countries with rapid urbanization and development (such as China) has contributed to the growth of the entire industry and will continue to do so.

According to the Business Research Company, the rapid growth of the global sports coaching software industry from 2014 to 2018 may be due to two main factors: the rapid growth of developing countries and rapid urbanization.

North America is currently the largest market for the sports industry and accounts for about 30% of the world market. After the United States, Western Europe, the Asia-Pacific region and other regions followed in terms of market share.

China and India are one of the two largest emerging national markets and offer many opportunities for business expansion across industries.

The Asia-Pacific region and the Middle East will be the fastest growing developing countries with growth forecasts of 9.04% and 6.2% respectively over the next few years.

The United States will continue to grow at a rate of 6%, while South America is also expected to grow at 5.3%.

So, apart from developing countries and urbanization, what is driving growth so far?

As you can see on the Forbes list of Most Valuable Sports Companies, clothing and TV distribution companies have produced top-rated brands in recent years and now dominate the industry. Just behind are big sports club franchises like the Dallas Cowboys, Yankees and Real Madrid.

Here are some of the reasons why these dominant companies are growing and driving growth in their sector and the industry as a whole.

The increasing demand for sportswear in developing countries and the increasing participation of women in sports have contributed to the growth in this field.

The expansion of TV licenses to include new digital technologies offers added value to companies using this space. New streaming media and mobile technology have expanded global audiences and generated new advertising revenue, while traditional television contracts continue to be a lucrative source of revenue.

Sports clubs such as Real Madrid have developed successful new approaches to branding and have taken steps to increase brand awareness in emerging markets by creating new audiences.

Fitness is growing rapidly, driven by a new generation of health-conscious consumers as well as developing countries, leading to the growth of participatory sports.

Where to go next for Sports Training Software?

The sports industry is expected to continue to grow, valued at $614.1 billion by 2022. In particular, several key trends are designed to drive growth and unlock new business opportunities:

The evolution and growth of digital technology, including new streaming services, mobile viewing, virtual reality, and more.

The expansion of digital betting and gambling means that the sports betting industry will grow.

European (soccer) or soccer ball is gaining popularity in the American market.

The popularity of eSports is growing and is expected to continue to grow along with the development of increasingly sophisticated VR technology.