Aussie love their sports, so why shouldn’t Aussie startups do well with sportstech? Makes sense, right?
The latest annual report from the Australian Sports Technologies Network (ASTN) seems to suggest the sector has loads of potential, and is now worth A$4.25 billion, equal in value to Australia’s fintech sector.
“Rapid growth in sportstech is reshaping the sports industry as we know it and unlocking new revenue streams,” said Dr Martin Schlegel, Chair, ASTN.
ASTN has uncovered 758 companies that make up Australia’s sportstech ecosystem, now employing 13,438 people. Australian sportstech company creation has grown by 11.8% per annum in the 10 years since the inception of the ASTN in 2012, when there were only 284 companies.
The report identifies 115 companies as industry leaders. This list includes well-known Australian brands including 2XU, SWEAT, VULY and PTP. These companies generate around 87% of the total revenue of the industry.
Australia’s sportstech sector has proved it has now moved out of its nascent stage as it goes head-to-head with Australia’s booming fintech sector. Australia continues to prove that it’s one of the world’s leaders and long-term pioneers in sports technology and innovation. The sector has exceeded all expectations in this year’s report as the sector surpasses A$4 billion in revenue.
Dr Martin Schlegel, ASTN
There has been exponential sportstech growth worldwide. The global sportstech industry is estimated to be worth US$22.9 billion in 2022, with it expected to grow by 13.8% per annum to US$41.8+ billion by 2027.
Australia’s sportstech sector is predicted to continue its successful trajectory and sustained growth with a new wave of technologies emerging in preparation for the Brisbane 2032 Olympics and Paralympic Games.
“We are building one of the world’s most advanced and integrated sportstech ecosystems in the lead up to several major events in Australia’s sporting calendar over the next decade. We can expect to see new technologies from AI, big data analytics to mobile, non-invasive wearable sensors and smart materials being deployed across the sportstech market verticals. As a result, new companies will be formed providing opportunity for further growth of the sector,” said Dr Schlegel.
Eastern seaboard dominant
The report identifies the formation of a rapidly growing sportstech cluster along Australia’s eastern seaboard with 90% of sportstech companies headquartered in VIC, NSW and QLD.
Victoria leads the way with 41% of all sportstech companies based there.
“There’s still an enormous amount of untapped opportunity in the local sportstech ecosystem. Australia’s sportstech sector is manifesting its position as an ideal incubation and validation market with our global counterparts acknowledging the capability and quality of sportstech solutions derived here,” said Dr Schlegel.
“We look forward to working closely with our robust network of startups, scaleups, established sportstech companies, government and the wider sports community – to take Australia’s sportstech sector to its next phase of growth by providing leadership in the development and commercialisation of new products and innovations at the intersection of sports and technology,” said Dr Schlegel.
Top 10 themes in sportstech
ASTN top 10 themes include:
- Artificial Intelligence (AI)
- Active Living, Fitness and Wellness
- Web 3.0, Metaverse, Gaming and Blockchain
- Virtual Sports of Tomorrow
- Smart Apparel, Equipment and Wearables
- ESG
- Sports Digital Ethics, Privacy and Security
- Women in Sportstech
- Investment and Venture Capital
- Global Trade and Business Matching
To download the full Sports Innovation Report 2023, please visit https://www.astn.com.au/industry-reports.
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