FIFS-Deloitte Study Sees Indian Sports-Tech Market Growing 85% To Rs 49,500 Crore By 2029

Sports technology market in India, comprising apps, devices, sensors, etc, are expected to grow by 85% to Rs 49,500 crore in the next four years, a joint report by fantasy games body Federation of Indian Fantasy Sports and Deloitte said on Thursday.

The report estimates that India's sports-tech market generated Rs 26,700 crore in revenue in the financial year 2024 and is projected to grow at a compound annual growth rate of 13% by financial year 2028-29.

"India's sports technology ecosystem is at an inflection point, with the market projected to grow at a 13% CAGR to Rs 49,500 crore by FY29," Deloitte India Partner, Prashanth Rao said.

He said that the advent of digital technologies are not only providing data for enhanced athlete performance but is also creating immersive fan experiences, leading to increased multi-sport following across demographics and opening newer avenues of business and business-led collaboration.

"Fantasy sports continues to be a key driver in this evolution, fostering deeper engagement and community building while also contributing significantly to employment generation and economic impact, with the industry expected to post a CAGR of 7% until FY29 and create 17,500 direct and indirect new jobs by FY27," Rao said.

The report has included fan engagement, sports data and analytics, and foundational technologies for the projection.

The GST imposed by the government on the fantasy sports industry was at 28%, which is the same as gambling tax rates, leading to muted growth for the sector over the next few years.

According to the report, the fantasy sports sector is expected to de-grow by 10% in FY25, but the industry is also expected to post a reduced CAGR of 7% for FY24 to FY29, compared to the earlier forecast CAGR of 30% for FY22 to FY27.

"This degrowth is driven by a whopping about 50% hit on fantasy sports companies' margins as a result of companies absorbing the impact of increased GST," the report said.

Post GST rule on fantasy sports, the investments in the segment have gone down by 90% in 2023 and no new investments being made in the sector in 2024.per cent

FIFS, Director General, Joy Bhattacharjya said that the sports technology industry in India is poised to unlock new levels of athletic excellence, fan engagement and overall growth in the sports industry.

"It can be a critical lever in elevating the sports experience for both the fans and athletes," Bhattacharjya said.