The value of Australia’s sportstechs now rivals that of fintechs, according to a new report by the Australian Sports Technologies Network.
Generating an annual revenue of $4.25 billion, the industry is on par with the value of the fintech sector, which is estimated to have annual revenues in the range $4-5 billion.
Sportstech companies are defined in the report as those working at the intersection of data, digital, and other applications. These include products and services used in sports, fitness, media, entertainment, esports, stadiums and venues, wearables, online gambling, and wellness and active living.
Produced by industry peak body, the Australian Sports Technologies Network (ASTN), the Sports Innovation Report 2023 shows the sector grew 11.8 per cent since 2022.
Examples of sportstech firms included in the report’s analysis are streaming service Kayo, digital ticketing service Humanitix, wagering tech provider BetMakers, carbon fibre wheel manufacturer Carbon Revolution, and human performance measurement tech provider VALD Performance.
In a foreword to the report, released on Wednesday, ASTN executive chair Dr Martin Schlegel said that the local sportstech ecosystem is “one of the top six sports innovation regions in the world alongside Northern America (US and Canada), United Kingdom, DACH (Germany, Austria, Switzerland), FRES (France, Spain) and Israel”.
“ASTN continues to push boundaries and build evidence that its entrepreneurial playbook is working and impacting the grossvalue-add of the Australian economy. As a small and geographically isolated country we have done exceptionally well, but many new and exciting opportunities exist into the future,” he said.
The report includes a breakdown of the technology stacks used by sportstech companies in Australia, most of which develop information and communications technologies (66 per cent). This followed by medical, health and BioTech (15 per cent), advanced materials (23 per cent), and sensors and devices (13 per cent).
Products and services offered may include sports equipment, on-the-field technologies for monitoring athlete health and performance, and off-the-field technologies supporting sports business applications, fan engagement, broadcasting, online streaming, sports infrastructure, and communication.
The estimate of sportstech revenue is assessed from 758 companies operating in Australia, of which 58.4 per cent are startups. Around 87 per cent of annual sportstech revenue in Australia is generated by 115 companies, mostly (56 per cent) serving the business of sport and entertainment market.
The ASTN categorises sportstech companies across three broad markets – that firms may be included more than once – mass participation and active living (56 per cent), business of sport and entertainment (46 per cent), and professional and elite sport (14 per cent).
Founded in 2012, the ASTN runs several innovation support programs including an accelerator and pre-accelerator, among its functions.
The accelerator programs are focused on supporting commercialisation of SportsTech. The report states that firms that have undertaken the ASTN accelerator have raised a total of $60 million in capital so far.
