MUMBAI: India's sports technology market, currently valued at Rs 26,700 crore, is projected to grow at 13 per cent annually to reach Rs 49,500 crore by 2029, according to a new report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte.
The report, Beyond the Field: India's Sports Tech Revolution, unveiled in New Delhi yesterday by minister of state for youth affairs and sports Raksha Khadse, reveals that fantasy sports, the largest segment, faces headwinds due to recent GST changes.
"The fantasy sports industry has seen revenues touch Rs 9,100 crore in FY24 but is expected to decline by 10 per cent in FY25,” said FIFS director general Joy Bhattacharjya.
The sector's growth forecast has been revised down to seven per cent CAGR through FY29, from an earlier projection of 30 per cent.
"Technology is creating immersive fan experiences and opening newer business avenues,” said Deloitte India partner Prashanth Rao. However, he noted that investments in fantasy sports dropped 90 per cent in 2023, with no new investments in 2024, primarily due to GST impacts and retrospective taxation concerns.
The report identifies three key subsectors: fan engagement, sports data and analytics, and foundational technologies. Despite current challenges, the industry's GST contribution is expected to more than double to Rs 3,520 crore in FY24 from Rs 1,480 crore in FY23..
The report highlights significant consumer adoption, with 89 per cent of Indian sports fans reporting that emerging technologies have enhanced their viewing experience. Between 2018 and 2023, the sector attracted cumulative investments of Rs 27,500 crore, with fantasy sports securing Rs 10,800 crore of this funding.
India's current one per cent share of the global sports technology market and four per cent of the APAC region suggests substantial growth potential. However, industry leaders elaborate that realising this potential requires a supportive regulatory framework, stable tax policies, and industry-wide standards for responsible gaming.
Minister Khadse emphasised the government's commitment to the sector, stating, "The integration of technology with sports is crucial as we enter the era of AI. Sports technology will be particularly important in analysing and developing our athletes for the future."
The sector is expected to create 17,500 direct and indirect new jobs by FY27, marking its growing importance in India's digital economy.
