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The sports sponsorship market size is estimated to grow by USD 22.64 billion at a CAGR of 6.02% between 2022 and 2027. The increasing sports sponsorship spending reflects the industry's attractiveness to brands looking to connect with audiences through sports events and athletes. The emergence of new sports leagues provides opportunities for growth and diversification within the industry. The rapid growth of the sports industry and international sporting events not only boosts the demand for sports-related products and services but also drives innovation and investment in sports technology and infrastructure.
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This market report extensively covers market segmentation by type (signage, digital activation, club and venue activation, and others), application (competition sponsorship and training sponsorship), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The signage segment is estimated to witness significant growth during the forecast period. This segment includes revenue from naming rights claims (title sponsorship, kit sponsorship, and product sponsorship) and permanent stadium signs, fixed panels, rotating panels, and video screens. Factors such as the growing number of new sports leagues and the success of existing leagues have boosted advertising investment from sponsors, propelling the growth of this segment in the global sports sponsorship market. The US, the UK, China, India, Australia, and the United Arab Emirates (UAE) are some of the key markets for the signage segment.
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The signage segment was the largest segment and was valued at USD 21.77 billion in 2017. The success of domestic sports leagues such as the Premier Badminton League (PBL), Indian Super League (ISL), and Pro Kabaddi League (PKL) has prompted sponsors to renew their title sponsorship rights. Most of these leagues started in 2019. Therefore, several sponsors are expected to invest further to acquire billboard rights for these new leagues in the future. Therefore, due to increased investment from sponsors, the growth of the signage segment is expected to accelerate year-on-year during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as the emergence of new sporting events and growing sports sponsorship spending are driving the growth of the North American market. Football, baseball, basketball, motorsports, and rugby are the main sports that attract major sponsors in the region. The US is the most important market for sports sponsorships in North America. The country's major leagues include the National Basketball Association (NBA), National Football League (NFL), National Hockey League (NHL), Major League Baseball (MLB), and the US and North American Soccer Leagues.
Furthermore, the integration of technology and analytics in sports sponsorships will be a key trend in the market. Analytics will enable the sponsors to keep a better track of their return on investment (ROI) over a sponsored sports event. Major sponsors in the industry have already started the integration of analytics in their sports sponsorship programs. For example, PepsiCo Inc. (PepsiCo) secured a wide-ranging partnership with SoFi Stadium. Under this partnership, PepsiCo will gain category-exclusive marketing, promotional rights, and sponsorship for the development of SoFi Stadium. Therefore, the sports sponsorship market in North America is expected to grow during the forecast period.
The market is driven by a variety of factors, including commercial interests, brand recognition, and global sports events. Brands seek to enhance brand loyalty and reach new audiences through sponsorship of athletic endeavors like basketball, cricket, and hockey. Data analytics and information technologies play a crucial role in targeting audiences and measuring the impact of sponsorships. Augmented reality and digital experiences are transforming the way brands engage with fans, offering innovative digital activation opportunities. The market's growth is fueled by the increasing commercialization of sports and the need for data-driven marketing strategies to maximize returns on investment. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The emergence of new sports leagues is one of the key factors driving the growth of the market. The rise of new sporting events worldwide is creating fresh opportunities for sponsorships across a variety of sports. This includes the introduction of new tournaments as well as the expansion of existing ones to new locations. These developments not only enhance brand recognition but also promote the commercialization of sports through various commercial services. Understanding communication patterns is crucial for sponsors to effectively engage with audiences in these events. These initiatives draw larger audiences, leading sponsors to increase their investments in these events.
The increasing number of new sporting events globally is also attracting sponsors for various sponsorship opportunities. Commercial interests are driving sponsors to explore diverse application categories within athletic endeavors to reach broader audiences. This trend is leading to the use of data analytics and data-driven marketing strategies, as well as digital activation, to enhance sponsorship impact and engagement. Sporting organizations depend on sponsors for funding, products, and services, which ultimately benefit all involved parties. Therefore, the rise of sporting events is expected to attract new sponsors to enter the market in the coming years.
Analytics gaining prominence in sports sponsorship is the primary trend in the market. Marketing analytics helps sponsors to gather social media insights from their customers before, during, and after sporting events. This helps sponsors better understand what people are saying about their financial brands. Marketing analytics also analyze customer reach. The number of people exposed to the sponsor's marketing to message in sponsorship activation.
Moreover, the most shared branding is probably also the most valuable. Because its reach extends far beyond the game and TV audience. This will allow sponsors to double down on the most photographed locations for their logo and reduce or remove sponsorship from places that do not get photographed as often. Hence, such factors will boost the growth of the market during the forecast period.
The lack of efficient tools to measure actual returns on investment (ROI) affects the growth of the market. Gold standards for measuring incrementality, ROI, and marketing mix models have failed to calculate accurate values. That makes it difficult for companies that have spent billions of dollars on sponsorship deals but can't track their actual return on investment (ROI).
Moreover, sponsorships have become an integral part of marketing strategies. although many companies have not yet been able to effectively quantify the impact of this spending on high-spending events such as the ICC Cricket World Cup, FIFA World Cup, and the Olympics. Therefore, the lack of efficient tools for measuring ROI can discourage sponsors from investing in sporting events around the world. Hence, these factors are expected to impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adidas AG: The company offers sports sponsorship to UEFA Euro, FIFA World Cup, and the Women's World Cup.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a dynamic landscape influenced by changing consumer behavior and emerging market trends. Businesses seek to capitalize on the fan experience and enthusiasm for sports through endorsement deals and influencer partnerships. With a focus on global progression, the market analyzes competitor market status by country and market leaders in different regions. Social causes and neighborhood community leagues drive partnerships with a purpose, while digital media and online streaming platforms offer new avenues for engagement. Despite supply chain disruption and regional conflicts, the market thrives on opportunities presented by virtual reality and virtual sports for enhanced fan engagement and revenue generation.
The market is a complex ecosystem driven by factors such as capital markets and economic changes. It involves various aspects like club & venue activation, individual athletes, and sports teams. Understanding the market requires analyzing concentration ratios, key player financial records, and industry profitability reporting. Mergers & acquisitions play a significant role in shaping the landscape, while social media marketing and social networks amplify sponsorship reach. Cycling, racing, and tennis are among the popular sports categories attracting sponsorship funds. The market's growth is influenced by technology impact and the ability to capitalize on opportunities while mitigating threats.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
Market growth 2023-2027 |
USD 22.64 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adidas AG, Anheuser Busch InBev SA NV, Electronic Arts Inc., Etihad Airways PJSC, Hero MotoCorp Ltd., HX Entertainment Ltd., Hyundai Motor Co., MACRON SPA, Nike Inc., PUMA SE, Qatar Airways Group Q.C.S.C., Red Bull GmbH, Renault SAS, Rolex SA, Samsung Electronics Co. Ltd., Super Group SGHC Ltd., and The Coca Cola Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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