Global sport sponsorship market set to grow by US$22.6 billion in years to 2027

February 12, 2024

The expansion of leagues and the creation of new ones is set to see the global sports sponsorship market increase by US$22.64 billion between 2022 and 2027, accelerating at a compound annual growth rate (CAGR) of 6.02% during the forecast period.

According to a newly released report form leading technology research and advisory company Technavio, this rise not only amplifies opportunities for sports teams and athletes but also amplifies fan engagement within evolving sports leagues.

The report, Sports Sponsorship Market by Type, Application and Geography, also advises that the integration of sports technology, sports nutrition, and sports drinks, alongside an increase sports gambling, sports tourism and sports training and coaching services, will also contributes to the market's progression.

Among trends identified in the report, Technavio identify the growing prominence of analytics, particularly within sport analytics companies, pointing out that this trend encompasses various factors, including the integration of analytics in sports events, stadiums, merchandise, endorsements, and the rapidly growing domain of esports.

It points out that sports media outlets and event organisers are increasingly reliant on sports data analytics to enhance strategies, marking a significant shift in how sponsorships are approached and leveraged within the sports sponsorship market.

Technavio also indicate that the foremost challenge impeding the global sports sponsorship market is the absence of efficient tools to accurately measure returns on investment (ROI) with this deficit affecting sponsorship agencies, fitness and wellness brands, sports betting companies, and stakeholders involved in broadcasting rights. This inability to precisely gauge ROI impacts various sectors, including sports facilities, ticketing platforms, social media platforms, and sports medicine and healthcare, hindering comprehensive evaluation and optimisation of sponsorship strategies.

Technavio’s report has segmented the market based on 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).

The signage segment is expected to experience notable expansion during the forecast period, encompassing revenue from naming rights (like title, kit, and product sponsorship) and various stadium signs such as permanent, fixed rotating panels, and video screens. Increased advertising investments from sponsors, driven by the rise of new sports leagues and the success of existing ones, are boosting growth within the global sports sponsorship market's signage segment. Key markets for this segment include the US, the UK, China, India, Australia and the United Arab Emirates.

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