July 13, 2024
Sports Hospitality Market

Expanding Sports Sponsorships to Fuel Growth of the Global Sports Hospitality Market

The global Sports Hospitality Market is estimated to be valued at US$ 17.45 Bn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The sports hospitality market involves services which provide sports fans access to premium and luxury experiences at sporting events. This includes ticketing options, fan engagements, premium seating, private suites, club lounges, dining options and sports-related activities and tours. Sports hospitality companies work with various sports franchises, leagues, venues and events to curate exclusive experiences for both individual and corporate clients. The sports hospitality industry helps generate additional revenue streams for sports properties and enhances fan engagement.

Market key trends:

One of the key trends in the sports hospitality market is the growing focus on sponsorships by sports leagues and franchises. Sports sponsorship provides brands highly visible platforms to promote their products and services. Large sports hospitality and events companies are partnering extensively with sponsors to offer tailored brand experiences at sporting fixtures. Fan-focused brand activations and sponsor perks are helping generate new sponsorship revenues. Additionally, the rising popularity of eSports and expanding global fanbases of major leagues is expected to further drive the demand for premium sports viewing and networking opportunities. Companies are innovating their offerings to capitalize on these trends and expand their international footprints.

Porter’s Analysis

Threat of new entrants: The sports hospitality market requires high investments and capital to enter. The established players enjoy economies of scale and brand recognition making it difficult for new players to enter.

Bargaining power of buyers: Buyers have moderate bargaining power as there are many suppliers providing similar sports hospitality services. However, customized services and packages increase switching costs for buyers.

Bargaining power of suppliers: The suppliers of venues, official sponsors and athletes have some bargaining power. The established sports hospitality companies bargain to get attractive deals and packages from suppliers.

Threat of new substitutes: There exists potential threat from new digital technologies that provide virtual experiences. However, the fan experience and thrill of live events make sports hospitality an unique experience with less threat of substitutes.

Competitive rivalry: The market is dominated by global brands with strong brands, however regional mid-size players compete on basis of personalized services.

Key Takeaways

The Global Sports Hospitality Market Size is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing spending on live sporting events and experiences. The market size is estimated to be US$ 17.45 Bn in 2023.

North America dominates the global sports hospitality market with highest revenue share. This is attributed to presence of major league teams and increasing corporate spending in the region. However, Asia Pacific region is expected to witness fastest growth in the forecast period owing to infrastructure developments and international sports events taking place in China and India.

Key players operating in the sports hospitality market are Keith Prowse, RTR Sports Marketing Ltd, ATPI Ltd, RK Sports Hospitality, White Label Hospitality, CSM Sports and Entertainment LLP, DTB Sports Hospitality and Event Management Limited, Honey & Co. Ltd, Wood Media Group Ltd, Hospitality Finder, Legends International, On Location Experiences, QuintEvents, Sportsworld, The Sports Travel Company, TLA Worldwide, VIP Sports Events, World Sports Group, IMG, Wasserman, Octagon, WME Sports, CAA Sports. These players compete on basis of brand, technology, services portfolio and regional presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it