New Delhi: India’s sports technology market is projected to grow at a 13% CAGR, expanding from INR 26,700 crore in FY24 to INR 49,500 crore by FY29, according to a report released by the Federation of Indian Fantasy Sports (FIFS) in collaboration with Deloitte. Titled ‘Beyond the Field: India’s Sports Tech Revolution’, the report was unveiled in the presence of Honourable Minister of State for Youth Affairs and Sports, Smt. Raksha Khadse.
Key Growth Drivers of India’s Sports Tech Industry
The report highlights three key subsectors driving the sports technology industry:
- Fan Engagement – Comprising fantasy sports, ticketing platforms, and digital sports gaming, this segment enhances fan interaction with teams and athletes.
- Sports Data & Analytics – Involves wearables and data providers that analyze player performance, aiding teams and businesses in decision-making.
- Foundational Technologies – Includes cloud computing, 5G, IoT, social media, and digital payment solutions, which form the backbone of the sports-tech ecosystem.
Fantasy Sports Faces Slowdown Amid Regulatory Changes
Fantasy Sports (FS), which contributes INR 9,100 crore to India’s sports tech market, has been the industry’s biggest revenue driver. However, the revised GST laws have led to a projected 10% decline in revenues for FY25, while the industry’s CAGR has been revised to 7% for FY24-FY29, down from the previously estimated 30% CAGR for FY22-FY27.
The tax burden has resulted in a 50% decline in margins for FS companies, forcing them to absorb increased costs. Additionally, investor sentiment has weakened, with a 90% drop in investments in 2023 and no fresh capital inflows in 2024 due to concerns over retrospective taxation.
Government and Industry Leaders Weigh In
Speaking at the launch event, Smt. Raksha Khadse emphasized the role of technology in shaping India’s sports ecosystem. “The sports culture is gradually growing in our country, and it’s crucial to integrate it with technology. AI-driven analytics will help assess and develop athletes for the future,” she said.
Joy Bhattacharjya, Director General of FIFS, underscored the need for regulatory clarity. “As the FS industry navigates regulatory crossroads, India must embrace sports technology with progressive policies. A viable tax regime and responsible gaming standards will be crucial in unlocking its full potential,” he stated.
The Road Ahead for Sports Tech in India
Despite the challenges in fantasy sports, the overall sports-tech sector is positioned for significant growth. Prashanth Rao, Partner at Deloitte India, noted that “India’s sports-tech ecosystem is at an inflection point, with digital advancements fostering immersive fan experiences and multi-sport engagement. The sector is expected to create 17,500 new jobs by FY27.”
To sustain this growth, the report recommends:
- Strengthening India’s sports infrastructure
- Fostering sports-tech startups
- Implementing balanced policies for innovation and stability
With the Draft National Sports Policy 2024 reinforcing the government’s commitment to grassroots sports development and economic growth, India is positioning itself as a global sporting powerhouse. As sports technology evolves, enhanced fan experiences, data-driven athlete training, and regulatory stability will determine the sector’s future trajectory.
