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 Minister of State for Youth Affairs and Sports, 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.
Speaking at the launch event, 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.
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: “Technology especially with the advent of digital, is 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.
“To sustain this momentum, a progressive and supportive regulatory framework is essential. While initiatives such as the Draft National Sports Policy 2024 are a step in the right direction, fostering innovation and ensuring long-term policy stability will be crucial in driving sustained growth. Strengthening India’s sports infrastructure, fostering sports-tech startups, and implementing balanced policies will not only elevate the sector but also position India as a global sporting powerhouse.”
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.
Report highlights
*India’s sports tech market generated INR 26,700 crore in revenue in FY24, projected to grow at a CAGR of 13% by FY29.
*Sector comprises fan engagement, sports data & analytics, and foundational technologies.
*Fantasy Sports (FS) industry, the biggest driver of the sports technology industry, is pegged for muted growth over the next few years as a result of the changes in the GST law
