The Sports Technology market may grow by 85% to Rs. 49,500 crore (US$ 5.70 billion) in four years: Federation of Indian Fantasy Sports (FIFS) and Deloitte

India's sports technology market, which includes apps, devices, and sensors, is expected to grow by 85% to Rs. 49,500 crore (US$ 5.70 billion) over the next four years, according to a joint report by FIFS and Deloitte. The report estimates that the market generated Rs. 26,700 crore (US$ 3.08 billion) in revenue in FY24 and is projected to grow at a compound annual growth rate (CAGR) of 13% by FY29. Deloitte India Partner, Mr. Prashanth Rao, highlighted that digital technologies enhance athlete performance and fan engagement, increasing multi-sport interest and new business opportunities. Fantasy sports remain a major contributor to this growth, fostering deeper community engagement. They are expected to create 17,500 direct and indirect jobs by FY27 despite a reduced CAGR of 7% until FY29.

However, the sector faces challenges due to the government's 28% Goods and Services Tax (GST), the same as the gambling tax rate. This has led to a decline in the fantasy sports industry, with a 10% de-growth projected in FY25 and a significant 50% margin hit for companies. As a result, investments in the fantasy sports segment dropped by 90% in 2023, with no new investments in 2024. Despite these challenges, FIFS Director General, Mr. Joy Bhattacharjya, emphasized that India’s sports technology industry is set to enhance athletic excellence, fan engagement, and overall growth in the sports sector, making it a crucial driver for the future of Indian sports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.