New York, Jan. 05, 2024 (GLOBE NEWSWIRE) — In a recent Technavio report titled Sports Sponsorship Market, it is projected that the market will grow rapidly in the coming years. The market size is estimated to increase by USD 22.64 billion, accelerating at a CAGR of 6.02% during the forecast period. North America is anticipated to contribute 30% to the overall market growth. Request Sample Report
The expansion of new sports leagues serves is a significant driver of the global sports sponsorship market’s growth. This rise not only amplifies opportunities for sports teams and athletes but also amplifies fan engagement within evolving sports leagues. Additionally, the integration of sports technology, sports nutrition, and sports drinks, alongside the increasing realms of sports gaming, sports tourism, and sports training and coaching services, contributes significantly to this market’s dynamic progression.
The market’s growth is being driven by the emergence of new sporting events and the increasing spending on sports sponsorships. Majorly sponsored sports in the North America region include football, baseball, basketball, motorsports, and rugby. Among North American countries, the United States stands out as the most significant market for sports sponsorships. Notably, prominent leagues such as the National Basketball Association (NBA), National Football League (NFL), National Hockey League (NHL), Major League Baseball (MLB), as well as the US and North American Soccer Leagues, contribute significantly to the sports sponsorship market. Download the sample report
Technavio highlights the emerging trends and challenges of the Sports Sponsorship Market:
The prevailing trend in the sports sponsorship market centers on the gaining prominence of analytics, particularly within sports analytics companies. This trend encompasses various factors, including the integration of analytics in sports events, stadiums, merchandise, endorsements, and the rapidly growing domain of electronic sports (Esports). Notably, sports media outlets and event organizers increasingly rely on sports data analytics to enhance strategies, marking a significant shift in how sponsorships are approached and leveraged within the sports sponsorship market.
The foremost challenge impeding the global sports sponsorship market is the absence of efficient tools to accurately measure returns on investment (ROI). This deficit affects sponsorship agencies, fitness and wellness brands, sports betting companies, and stakeholders involved in broadcasting rights. The inability to precisely gauge ROI impacts various sectors, including sports facilities, ticketing platforms, social media platforms, and sports medicine and healthcare, hindering comprehensive evaluation and optimization of sponsorship strategies.
Companies like Adidas AG, Hyundai Motor Co., and Rolex SA are major players in the sports sponsorship market. For more details on the companies and their offerings, download the sample report here
Technavio has segmented the market based on type (signage, digital activation, club and venue activation, and others), application (competition sponsorship and training sponsorship), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The signage segment is expected to experience notable expansion during the forecast period, encompassing revenue from naming rights (like title, kit, and product sponsorship) and various stadium signs such as permanent, fixed rotating panels, and video screens. Increased advertising investments from sponsors, driven by the rise of new sports leagues and the success of existing ones, are boosting growth within the global sports sponsorship market’s signage segment. Key markets for this segment include the US, the UK, China, India, Australia, and the United Arab Emirates (UAE).
The sports sponsorship market is experiencing growth due to the rise of new sports leagues and increased advertising investments from sponsors, especially in signage, digital, and venue activation. Challenges like the lack of efficient ROI measurement tools persist, impacting sponsor interest. However, the integration of technology and analytics is aiding in ROI tracking. North America’s resurgence post-COVID-19 is expected to significantly contribute to market expansion. The market offers opportunities and challenges, shaping the evolving landscape for industry stakeholders. Buy the report now
Related Reports:
Sporting Events Market: The Sporting Events Market is projected to grow by USD 90.42 billion with a CAGR of 8.23% during the forecast period 2021 to 2026.
Esports Market: The esports market is estimated to grow at a CAGR of 21.81% between 2022 and 2027. The size of the market is forecast to increase by USD 3,515.1 million.
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