With the Brisbane Olympics now just 8 years away, Australia’s sportstech is already booming, growing 10% in both employment and revenue over the past 12 months to be worth $4.69 billion annually, according to new analysis.
The third edition of the Australian Sports Technologies Network’s (ASTN) annual Sports Innovation Report concludes that the sector is moving from the ‘growth stage’ to ‘maturity stage’ amid market consolidation, increasing capital from sophisticated investors and the widespread adoption of tech in sport.
The 2024 ASTN Sports Innovation Report
ASTN Dr Martin Schlegel said that with nearly 15,000 people employed in sportstech, and its value represents 12% of the $40 billion local sports industry, it makes substantial economic and employment contributions.
“As the industry matures, it becomes increasingly attractive to investors and stakeholders, promising continued innovation and development,” he said.
“This marks a new chapter for Australia’s local sportstech ecosystem, showcasing its resilience and adaptability in a rapidly evolving market.”
Dr Schlegel said the report identifies a range of factors leading to a growing maturity, including rapid growth with the integration of digital technologies globally.
And it’s not just at the professional level – think consumer adoption of smartwatches, connected fitness systems, and training apps, which represent a 177% increase in new sportstech companies over the past 12 years.
“Technological innovation is at the heart of the sportstech sector’s growth,” Dr Schlegel said.
“From mobile solutions and big data analytics to wearable technology and advanced materials, the diversity and sophistication of technologies being developed are truly impressive.”
Source: ASTN
Locally, the report counted 765 Australian sportstech companies in operation at June 2024. Interestingly, it’s a broad church that includes everything from sports streamer Kayo to ticketing platform Humanitix, sportswear retailers and brands Ripcurl and Lorna Jane, as well as Rebel, esports platform Immutable and Kayla Itsine’s fitness app, Sweat.
While the rate of growth slowed between 2022 to early 2024, disrupted by Covid, 87 new sportstech startups emerged amid broader consolidation and closures.
ASTN estimated that the sector’s M&A and capital raising activity in FY2024 was around $500 million, with increased interest from both domestic and global investors.
And Victoria takes the gold medal when it comes to sportstech companies, with 40% headquartered there.
And while the Paris Olympics are currently underway, the Brisbane 2032 Olympics and other major sporting events, along with significant infrastructure investments, are expected to drive further growth and innovation in the sector.
Dr Schlegel said sportstech intersects with many of the enabling capabilities which are part of the priority areas of the Australian economy identified by the National Reconstruction Fund.
“The next decade promises exciting opportunities for growth and innovation both domestically and internationally,” he said
“We can expect advancements in artificial intelligence, positioning, timing and sensing, advanced information and communication technologies as well as advanced manufacturing and materials or quantum technology will help to shape the future of various industries.”
Here are some of the key findings of the 2024 Sports Innovation Report, which can be downloaded here.
● Maturing sector: The sector is shifting from the ‘growth stage’ to ‘maturity stage’, marked by widespread adoption of technologies
● Market value: The sportstech industry is now worth A$4.69 billion annually, a 10% increase over the past 12 months. This figure represents 12% of the total sports industry.
● Local growth slowing: There are 765 Australian sportstech companies as of June 2024. The rate of new company establishments has slowed since 2022, reflecting the sector’s maturation.
● Company closures and startups: Between 2022 and early 2024, 76 companies closed, while 87 new companies were established.
● Stable M&A and Capital Raising: 2023-24 saw consistent A$500 million in activity from previous year.
● Emerging Investors: 2023-24 saw the rise of strategic and sophisticated investors not previously seen in the sector.
● Revenue and employment growth: The sector’s revenue increased from A$4.25bn in 2023 to $4.69bn in 2024, with sector employment rising from 13,438 to 14,906 people.
● Market leaders: The top 15% of companies generate 85% of the sector’s revenue and employ 70% of its workforce.
● Sector composition: The majority of companies (58%) serve the Mass Participation & Active Living market, followed by the Business of Sport & Entertainment (43%), and Professional & Elite Sport (18%).
● Technology utilisation: Most companies (66%) use Information and Communication Technologies (ICT) for their solutions, with significant applications in mobile solutions, performance science, and big data analytics.
● ASTN Accelerator success: Over half of ASTN’s alumni from the Growth-Stage Accelerator raised more than A$75 million over the last five years.
● Eastern seaboard dominance: 92% of the industry is located along the Eastern Seaboard, with Victoria leading in sportstech activity (40%), followed by New South Wales (30%) and Queensland (19%).
Source: ASTN
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