2020 marks the year where Asia’s GDP will overtake the combined GDP of the rest of the world. Forecasts project that the region is will contribute nearly 60% of global growth by 2030.
While Asia has always been heavily focused on technology, housing many of the world’s leading tech and hardware firms. More recently, attention has also been turning towards the application of technology in the emerging regional sports industry.
US $31 billion. That is what the overall sports technology market is estimated to be worth by 2024! Football was the largest segment in the global sports technology market in 2018, while basketball was the fastest growing segment.
9 out of 19 major global players in the sports technology market are from Asia.
The leading companies in the sports technology market includes IBM, Cisco, Garmin, Fitbit, Apple, Oracle, and Activision Blizzard from the US, Ericsson, SAP, and Modern Times Group from Europe, and Fujitsu, LG, NEC, Panasonic, Samsung, Sharp, Sony, Tencent, and CJ Corporation from Asia.
Increased tech innovation
The sports industry has undergone a rapid transformation in recent years and the rising sports tech industry in Asia is now attracting international interest. As sport at the professional level grows in stature, the use of technological innovation in sport is being increasingly integrated to level out the playing field and close the proverbial gap.
According to market forecasts for the period of 2019-2023, the APAC region will register the highest sports technology market growth.
Sport is very much a results-driven business, and where technological investments are concerned, a particular area of emphasis is placed on performance data monitoring and evaluation. Professional sports clubs and associations are now also very keen on using and testing technologies to minimise athlete and player injuries, while maximising their performance. Sophisticated athlete management data systems like Fusion Sport’s Smartabase platform help to gain a deeper understanding of your athletes, with all their data consolidated and analysed in one place. This helps to make better informed decisions on their health, safety, and performance.
Governments are now recognising the importance of research and development as well as scientific learnings based on artificial intelligence to facilitate the growth in professionalism. Talent identification is still a key initial component in the development pathway, but the advancement in technology is shifting the focus towards achieving above and beyond existing potential. Accelerating this process are a wide range of stakeholders that ensure continual technological improvements aid world class provision and build future sporting infrastructure.
Increasing demand for the latest trends
On the ground, sports is becoming ever more popular across Asia as well, with both sports consumption and participation steadily on the rise. The sports and active recreation market across the APAC region was worth and estimated US $83 billion in 2019, with a 30% rate of participation and a US $66 per year average participant spend.
With this development resulting in an ever-increasing demand for the latest trends, innovative sports products from more mature sports markets, particularly the US and around Europe have begun to find their way into countries across Asia.
There are various, innovative sports tech products that have recently expanded their business to Asia by partnering with Dejavu, ranging from smart training equipment used for football and hockey like Smartgoals, to revolutionary digitalised and fully customisable sports flooring systems like ASB Glassfloor.
Attractive market opportunities
From a consumer purchasing perspective, as participation in sports and fitness grows, more sports enthusiasts are now investing in smart tech wearable products to become healthier, enhance their conditioning and track their activities to ultimately seek progress in individual performance statistics.
There an estimated 300 Million smart tech sports wearable users in Asia in 2020, with the total user penetration ratio for Asia expected to hit above 5% by 2024.
Within South-East Asia particularly, this growth is being fuelled by increasing disposable incomes, where consumer spending on the latest sporting innovations is escalating considerably. The massively expanding middle class throughout South-East Asia will reach 350 million people by 2022, with a disposable total middle-class income of US $300 billion.
The core markets of Singapore, Thailand, Indonesia, Malaysia, Vietnam and the Philippines are full of young, energetic and tech savvy consumers, which have a strong appetite for the latest gadgets and applications with a rapidly growing interest in sports and lifestyle.
Over the last few years, the role of technology in sports has progressed and expanded faster than anyone could anticipate. We have entered a new phase in the world of sports, as technological innovations have transformed the ways sports can be played, analysed, and improved. These technological advancements have also considerably changed the way people experience, consume and engage with sports. Sports tech has developed into one of the fastest growing industries, both worldwide and specifically in Asia.
The sport technology revolution is here to stay. Brands that are willing to join this transformation have more opportunities than ever to succeed. Now is the perfect time to introduce your sports tech brands to Asia to benefit from entering less competitive markets with a potential first mover advantage, and to capitalise on immense market growth potential.
Are you interested in expanding your business and entering Asia’s fastest growing markets?
Dejavu works together with innovative sports technology companies from around the world to establish long-term relationships with them.
With exceptional industry knowledge and strong connections across South-East Asia, we are the perfect partner to help market and grow your brands and products across the region. Your journey to success starts here.
Get in touch now to find out how we can help your business grow!