Digital Sports Industry, encompassing both physical and virtual realms, forecasted to reach a whopping USD 13,505.5 million by the year 2034.
The Phygital Sports Market, a fusion of physical and digital sports experiences, is witnessing a rapid expansion across the globe. This growth is driven by several factors, including technological innovations, growing consumer engagement, and the rise of global events.
According to recent reports, the Asia Pacific region is leading this growth, fuelled by the booming e-sports sector and tech investments. Europe, on the other hand, is focusing on enhancing the viewer experience with fan engagement tools and wearables, aiming to create a more immersive and interactive environment.
Football dominated the sport type segment in 2024, accounting for a 25.6% share. However, basketball and hockey also show significant growth in the Phygital Sports Market. Innovative technologies like Virtual Reality (VR) and Augmented Reality (AR) are being used for better training in sports such as dancing, racing, cycling, and shooting.
The Phygital Sports Market was valued at USD 1,546.3 Million in 2024, with North America leading the regional market with a 32.5% share, amounting to USD 502.55 million. The market is projected to reach an impressive USD 13,505.5 Million by 2034, growing at a Compound Annual Growth Rate (CAGR) of 24.2% during the forecast period.
The Internet of Things (IoT) led the technology segment in 2024 with a 22.3% share, while AI supports all tech with data analysis in the Phygital Sports Market. These technologies help monitor and prevent injuries in real-time, ensuring the safety and well-being of athletes.
Fans who use AR are 67% more likely to buy merchandise, indicating a positive impact on revenue generation. Moreover, AR and Mixed Reality (MR) are boosting the fan experience and player skills, making phygital sports more engaging and interactive.
Related markets such as smart sports equipment and fantasy sports are also showing strong growth, indicating the sector’s expansion. The Smart Sports Equipment Market was valued at USD 2.9 billion in 2024 and is projected to reach USD 7.7 billion by 2034, growing at a 10.3% CAGR. The Fantasy Football Market, a digital competitive sport segment, was valued at USD 27.2 billion in 2023 and is expected to reach USD 87 billion by 2031, with a 13.8% CAGR from 2024 to 2031.
The emerging nature of phygital sports as a combined physical-digital experience means that precise consolidated market size estimates are still developing. However, existing adjacent markets confirm robust upward trends, suggesting a bright future for the Phygital Sports Market.
In the Phygital Sports Market, Europe is striving to increase viewer engagement and interactivity through fan engagement tools and wearables (technology). Meanwhile, the rising popularity of innovative technologies like AR and VR in training various sports such as dancing, racing, cycling, and shooting (technology, sports) is driving significant growth. Moreover, the use of AR could potentially increase merchandise sales by 67%, indicating a positive connection between technology and finance in this sector.
