India’s Sports Tech Market Poised To Achieve Rs 49,500 Crore Revenue by 2029: Report

New Delhi, Feb 15 (KNN) India’s sports technology market is set for significant expansion, with projections indicating revenues will reach Ra 49,500 crore by 2029, growing at a compound annual growth rate (CAGR) of 13 per cent,  according to a new report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte.

However, the fantasy sports (FS) sector, which has been a major growth driver, faces challenges due to regulatory hurdles and increased taxation.

The report, titled ‘Beyond the Field: India’s Sports Tech Revolution’, identifies fan engagement, sports data and analytics, and foundational technologies as key contributors to this growth. Fantasy sports, which generated Ra 9,100 crore in FY24, is expected to see a decline of 10% in FY25 due to the impact of the revised Goods and Services Tax (GST) regime.

The sector has also experienced a dramatic fall in profitability, with margins shrinking by around 50 per cent due to the increased tax burden. As a result, the expected CAGR of 30 per cent from FY22-FY27 has been revised downward to7 per cent for FY24 to FY29.

Investment in fantasy sports has plummeted by 90 per cent in 2023, with no new funding expected in 2024, as concerns about retrospective taxation persist.

Speaking at the report's launch, FIFS Director General Joy Bhattacharjya stressed the importance of progressive taxation policies. “A clear regulatory framework and a balanced tax regime are crucial for fostering innovation and long-term sustainability in this sector,” he said.

Despite the slowdown in fantasy sports, experts remain optimistic about India’s broader sports-tech landscape, suggesting that investment in artificial intelligence (AI), cloud computing, and sports analytics will drive further expansion.

The government’s Draft National Sports Policy 2024 is expected to play a pivotal role in creating a favourable regulatory environment.

(KNN Bureau)