New report predicts ongoing growth for Australia’s sports tech industry

The Australian Sports Technologies Network (ASTN) has today released its inaugural report on the nation’s sports technology sector, showing that it is only just getting started, but is quickly building to be one of the most mature and interconnected sportstech industries in the world.

Marking ASTN’s 10th anniversary, the Sports Innovation Report 2022 quantifies the rapid evolution of the sports tech sector over the past decade, showing is on track to reach unprecedented levels.

With the global sports tech industry estimated to be worth $US17.9 billion in 2021, and it is expected to grow by 17.5% per annum to more than $US40 billion by 2026.

ASTN estimates the value of the sports tech sector locally at almost $ 3.1 billion revenue annually, employing nearly 10,800 people. And over the past decade, the number of local sports tech companies has grown from 224 to 605 by 2022, representing a 170% increase.

Advising that with increased demand for Australia’s innovation and technologies, the sportstech industry is on track to reach unprecedented levels if it embraces the emerging trends pinpointed in the report, ASTN Chair, James Demetriou stated “Australia is punching above its weight and is now regarded as one of the top five nations globally in sports tech.

“We are building one of the world’s most advanced and integrated sports innovations ecosystems over the next decade leading up to several major events in Australia’s sporting calendar including the 2032 Summer Olympic Games.

“The future looks fit for sportstech businesses if the industry is to follow the trajectory of the past 10 years. Job creation, economic growth, and trade and investment are on track to be among the great legacy achievements of which Australia can be immensely proud.”

Key trends
The report also identifies 10 major themes that provide strategic opportunities for the industry derived from conversations with industry leaders, startup businesses and government. 

Demetriou noted “to reach their full potential and to keep pace globally, there are real line-break opportunities that these firms should be taking advantage of that will further enable them to ride the wave of success they have enjoyed in past years.

“The topic of sustainability is consistently high on the global news agenda and sports is playing a leading role in promoting and supporting sustainability. Not only is it the right thing to do but it will give them a competitive advantage.”

Key Report Findings:
• Victoria leads the way as Australia’s centre for sports innovation, representing 44% of the industry, followed by NSW at 27% and Queensland at 20%. ASTN estimates that nearly half of jobs are currently located in Victoria as of the top 118 largest sports tech companies, 46 are based in Victoria.
• Information and Communications Technologies (ICT) most highly adopted tech category: Of the technology categories that sports tech businesses are adopting to develop their solutions, 61% were ICT-based (particularly around capturing and distributing sports content), 16% were advanced materials (such as those used for apparel and equipment that could be fibres or composites), 13% were sensors and devices whilst 9% were health, medical and biotech.
• Collaboration is key: There are now around 70 sportstech networks /clusters, 90 sports technology accelerators and more than 100 dedicated sports tech investors globally.
• The big players are leading the way: The ASTN has identified 118 sportstech companies as industry leaders and has estimated that in 2022 that these companies employ more than 8,000 people and generate $2.72 billion revenue per annum, or 89% of the total revenue of the industry. 
• Emerging sports tech trends: Some of the trends outlined in the report, that form part of ASTN’s five-year strategy, include women in sports tech, sustainability and ESG (environment, sustainability, governance), artificial intelligence, smart apparel, equipment and wearables, and investment and venture capital into Australian sports companies.

Looking forward, Demetriou added “we are committed to strengthening the Australian sports tech sector by providing leadership in the commercialisation, development and promotion of Australian inspired sports technologies while also bringing together experts with startups and the wider community to facilitate innovation.”

The report will be officially launched at ASTN’s 10-year anniversary event this eve, 2022 at its headquarters in the Melbourne suburb of Cremorne, with a expert panel of industry leaders will discuss 10 years of sports tech, and some of the industry opportunities available.

For more information, please visit www.astn.com.au