Indians are well-known as a nation that is deeply passionate about sports. In recent years, the sports industry has transformed from simple entertainment to a source of multimillion-dollar income and enormous investments.
Such changes became possible thanks to the serious technological development of the region, the active involvement of celebrities in the popularization of the sport, and the boosting of training/expertise activities.
Also, India often plays a role as a host for world tournaments and championships. All this led to the unprecedented growth of the Indian sports market size by US $8,28b in 2022.
The Scale and Scope of Indian Sports
Along with the $8,28b total revenue in 2022, the Indian sports industry may boast a 15,59% annual growth rate. If the same tendency continues, It was estimated that by the end of 2027, the market volume might reach US $17,64m.
Some of the main characteristics of the current Indian sports industry are the following: growing sports scene, enormous increase in funding, and effective cooperation with big businesses.
It should be mentioned that India has over 1.4 Billion people. What’s more, almost 30% of them are young people. These peculiarities led to a significant increase in the popularity of key sports in the region. So, over the past 5 years, the popularity of the following sports has grown unprecedentedly:
- cricket - by 38%;
- football - by 25%;
- badminton - by 13%.
Along with technological development, esports is also entering the Indian sports industry. After esports disciplines were recognized as "multisports events", they began to bring substantial investments and change the overall industry landscape.
After the end of the coronavirus crisis, the global sports market began to recover slowly. By the end of 2020, it reached the mark of US 403078 Million. Moreover, its growth is expected until 2030 with a CAGR of 9.13%.
Unsurprisingly, among the major markets remain the US (US $83,1b), Europe (US $12.75b), and China (US $28,72). As in the case of India, these sports markets actively interact with local and international businesses to attract investment. Cooperation with international betting websites is one of the most vivid examples of such interaction. For instance, LeoVegas Group partnered with Inter Milano FC, while 678.com started collaborating with AC Roma in Asia.
As for particular disciplines, soccer remains the most popular sport, with a fanbase of about 3,5 billion people. Tennis can boast 1 billion fans, while basketball is in third place with about 800 million connoisseurs of this sport.
The sports industry brings a serious influx to the state budget thanks to its rapid development. Thus, according to research conducted by Qrius, Indian sports contribute 5% of the GDP.
The emergence of the Indian Premier League (Cricket), Pro Kabaddi League, Hockey India League, Indian Super League (Football), and more have already influenced the Indian sports market.
Such an impact is directly related to new job opportunities, tourism, increased tax contributions, and the development of local communities. Despite the rapid growth, such indicators are still far behind leading sports industries like the USA or Europe, which have impressive levels of commercialization.
Indian government officials understand that developed infrastructure is the backbone of the sports ecosystem. That is why the country is actively building stadiums, training facilities, sports academies, etc. Among the most promising projects are the Gwalior International Cricket Stadium, Sardar Patel International Stadium, Gopichand Badminton Academy, and so on.
Also, many sports enthusiasts in India know of private initiatives such as Abhinav Bindra Targeting Performance regional centers. Nevertheless, the scale and financing of such projects are insufficient compared to similar initiatives in Europe or the USA. An important role here is played by a strong skew in the popularity of cricket.
It is actually the most popular sport in India, and many facilities are dedicated to cricket. At the same time, it is not so popular in other countries compared to soccer, hockey, or basketball, which can accumulate billions of dollars.
While the private sector can effectively invest and develop local teams and leagues in the US and Europe, India is distinguished by its more centralized management system. This approach stimulates corruption among sports authorities as well as insufficient allocation of resources.
Sports Culture and Fan Engagement
Sports play an important role in the cultures of both Western countries and India. However, its perception differs significantly due to the peculiarities of the socio-economic conditions of both countries.
For many people, India is associated only with cricket. It has become a national sport, while other disciplines remain in its shadow. For example, field hockey, in which India won 8 gold medals at the Olympics, does not get even a quarter of cricket's attention.
In the USA or Europe, various sports are more developed and recognized both at the national and regional levels. Also, in those regions, there are much better conditions for teaching and training athletes.
A well-developed system of sports promotions and incentives from an early age distinguishes Western countries. In these regions, sports are not only a hobby but also a potential profession, offering avenues for high income to true enthusiasts. In contrast, in India, the sport is mostly perceived as a leisure activity rather than a career path. This difference in perception also influences the approach to sports betting and predictions.
In Western countries, where sports can be a significant source of income, there's a greater emphasis on financial management for responsible predictions. Bettors often employ more strategic financial planning and management to ensure that their sports betting activities, particularly in high-stakes environments, are conducted responsibly and sustainably.
As for sports broadcasting, India is distinguished by its almost complete dominance of cricket. In the USA or Europe, on the contrary, there is a wider choice of disciplines, including soccer, basketball, hockey, and more. From a broadcast service point of view, India is almost an agglomeration of many media markets.
Among the important peculiarities is that media revenue in India is almost equally divided between advertising and subscription fees. Popular services such as Hulu, Fubo, or YouTube TV are available both in India and in the USA or Europe. However, the number of paid subscribers in India is significantly lower than in Western countries.
A substantial increase in domestic popularity and increased interest from abroad characterize the current Indian sports industry. Sports enthusiasts do their best to establish cooperation between businesses and sports organizations, attract influencers to promote multiple disciplines, build training facilities, and more.
At the same time, these initiatives often face problems of both financial/legal (corruption, centralized management) as well as traditional/cultural (almost complete dominance of cricket) nature. Such problems are less common in Western countries, where they pay more attention to local initiatives and provide more efficient distribution of resources.
However, considering the steady growth of the sports market in India, it is possible to predict its further development. The growing influence of modern technologies has already significantly boosted this trend. For example, the Internet and streaming platforms engage many viewers and attract bigger investments to the industry.
