India's sports technology market is on a strong growth trajectory, with projections indicating an 85% growth over the next four years. According to a joint report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte, the market, which includes sports apps, devices, and sensors, is expected to reach ₹49,500 crore (US$ 5.70 billion) by FY29. The market's revenue for FY24 was estimated at ₹26,700 crore (US$ 3.08 billion), growing at a compound annual growth rate (CAGR) of 13%.

Key Drivers of Growth

Digital technologies are playing a crucial role in enhancing both athlete performance and fan engagement, making them a key driver of the market’s rapid expansion. These innovations have sparked multi-sport interest and opened new business opportunities. Additionally, fantasy sports continue to be a major contributor to this growth, with an increasing number of fans engaging through virtual sports platforms.

The sector’s growth is also leading to new job opportunities, with 17,500 direct and indirect jobs expected to be created by FY27. This highlights the potential of sports technology to drive employment and economic growth within the industry.

Challenges Facing the Sector

However, the sector is not without its challenges. The government's 28% Goods and Services Tax (GST) on fantasy sports, which is the same as the tax rate on gambling, is having a negative impact on the industry. As a result, fantasy sports companies are projected to see a 10% de-growth in FY25, with some facing a 50% margin hit. This tax policy has led to a 90% drop in investments in fantasy sports in 2023, with no new investments forecasted for 2024. This reduced investment is likely to impact the overall growth trajectory of the fantasy sports market within the sports technology sector.

Outlook for the Future

Despite these challenges, the outlook for India's sports technology sector remains positive. Mr. Joy Bhattacharjya, Director General of FIFS, emphasized the importance of this sector in driving athletic excellence, fan engagement, and overall sports sector growth. India’s sports technology market is set to become a critical driver for the future of Indian sports, helping to transform the country into a global leader in sports innovation.

The growth of the sports technology market is likely to be increasingly shaped by digital advancements, innovative fan experiences, and ongoing developments in fantasy sports platforms. As the market evolves, it presents significant opportunities for investors, companies, and sports enthusiasts alike.

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