India's sports technology industry is on track for substantial expansion, with revenue expected to grow from Rs 26,700 crore in FY24 to Rs 49,500 crore by FY29, representing a compound annual growth rate (CAGR) of 13%. According to a report titled 'Beyond the Field: India’s Sports Tech Revolution', published by the Federation of Indian Fantasy Sports (FIFS) in collaboration with Deloitte, the sports-tech ecosystem is rapidly evolving, driven by innovations in fan engagement, sports data and analytics, and foundational technologies.

Key Drivers of Growth

The report identifies three primary segments driving growth in the sports technology sector:

Fan Engagement: This segment includes fantasy sports, sports ticketing, gaming, and immersive experiences that enhance audience participation and connect fans with their favorite sports and athletes.

Sports Data & Analytics: This area focuses on leveraging historical data and wearable technologies to improve athlete performance, enhance training strategies, and optimize business operations through data-driven insights.

Foundational Technologies: This encompasses the use of cloud computing, 5G networks, Internet of Things (IoT), social media platforms, and digital payment solutions that underpin the infrastructure supporting the sports industry.

Challenges in the Fantasy Sports Market

While the fantasy sports segment has been a key player in India's sports-tech boom, it is now facing a slowdown in growth due to changes in tax regulations. Although the industry generated revenues of Rs 9,100 crore in FY24, it is projected to experience a 10% decline in FY25. The growth outlook has been revised to a 7% CAGR from FY24 to FY29, a significant drop from the previously anticipated 30% CAGR for FY22 to FY27.

The main factor behind this deceleration is the introduction of higher Goods and Services Tax (GST), which has affected company profit margins. It is estimated that the sector has seen a 50% reduction in earnings due to the new tax structure. Additionally, concerns over retrospective taxation have made investors wary, leading to a 90% decline in funding during 2023, with no new investments expected in 2024.

Industry Leaders Call for Policy Reforms

Industry leaders have stressed the need for policy reforms to support the growth of sports technology. Joy Bhattacharjya, Director General of FIFS, highlighted the transformative potential of the industry, stating, "The sports technology industry in India is poised to unlock new levels of athletic excellence, fan engagement, and overall growth in the sports industry." He called for policies that foster technological advancements and innovation in sports.

Prashanth Rao, Partner at Deloitte India, pointed out the critical role digital advancements play in shaping fan experiences. He emphasized that while the fantasy sports sector is facing challenges, it remains a key driver in the sports-tech evolution. He also noted that the sector is expected to create 17,500 new jobs (direct and indirect) by FY27, further demonstrating its economic impact.

Government's Role in Shaping the Future

The Indian government has expressed its commitment to enhancing the sports ecosystem through the Draft National Sports Policy 2024. The policy aims to improve sports culture and infrastructure in the country. As the sports-tech industry expands, experts argue that a progressive regulatory framework will be essential to sustaining growth. A balanced tax regime and policy stability are needed to encourage innovation and investment in this rapidly evolving sector.

With increasing adoption of technology in fan engagement, gaming, and data analytics, sports technology is set to play a vital role in shaping India’s sporting landscape. It will not only bridge the gap between fans, athletes, and businesses but also contribute to long-term economic growth by creating new opportunities and strengthening the overall sports ecosystem.