The global sports sponsorship market revenue was around US$ 79 billion in 2023 and is estimated to reach US$ 146 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.1% during the forecast period from 2024 to 2032.
The term "sports sponsorship" refers to a legal agreement in which a company or brand contributes cash or other resources to a sports team, competition, or athlete in exchange for publicity and marketing opportunities. This is a typical marketing strategy used by companies to raise brand awareness and establish a connection with a particular audience.
Factors Influencing Market Growth
- The need for sponsorship prospects is increasing because of the growing sports commercialization. The fiscal support of sports teams, and individual athletes and the financing of talent and enhancement of the fan experience largely depend on sponsorships. As a result, sponsors are now seeking exclusive associations and the right to connect their labels to famous sporting franchises, creating a competitive environment. Thus, this is boosting the market growth.
- Sport's huge attraction and popularity around the world is estimated to fuel the market growth. Sports have a unique talent for involving audiences and connecting cultures. In addition, millions of individuals watch main sporting events including the FIFA World Cup, Formula 1 races, and Super Bowl, each year giving sponsors a special platform to encourage their companies to a broad number of spectators.
- Exorbitant sports sponsorship costs can be a major financial burden, especially for startups or smaller enterprises with limited funds. Therefore, this is estimated to restrain the market growth.
Study of the COVID-19 Pandemic
The COVID-19 pandemic had a negative impact on the market. This can be attributed to the various sports events being canceled, postponed, or held without spectators. As a result, sponsorship costs declined in 2020. However, it is predicted that the market will recover as soon as sporting events resume and fan involvement increases.
Regional Insights
Europe is predicted to dominate the market in terms of the largest shares. This is because the acceptance of football as a sport in the region is unquestionable, and the sponsorship industry shows this interest. Premier League in England and Serie A in Italy are some of the key European football leagues that acquire a lot of media exposure and sponsorship resources. As a result, companies engage in extreme competition for associations with the best teams, recognized athletes, and foremost competitions including the UEFA Champions League and FIFA World Cup.
Leading Competitors
The leading competitors in the global sports sponsorship market are:
- PepsiCo Inc.
- Puma SE
- Macron S.p.A.
- Red Bull GmbH
- Anheuser-Busch InBev SA/NV
- ASICS Corporation
- Castrol India Limited
- Adidas AG
- Electronic Arts Inc.
- Nike Inc.
- Others
Segmentation Analysis
The global sports sponsorship market segmentation focuses on Type, Sports, Application, and Region.
Segmentation based on Type
- Club and Venue Activation
- Signage
- Digital Activation
- Others
Segmentation based on Sports
- Football
- Hockey
- Cricket
- Others
Segmentation based on Application
- Competition Sponsorship
- Training Sponsorship
- Others
Segmentation based on Region
- North America
o The U.S.
o Canada
- Europe
o UK
o Germany
o France
o Italy
o Spain
o Netherlands
o Rest of Europe
- Asia-Pacific
o China
o Japan
o India
o Australia
o South Korea
o Singapore
o Rest Of Asia-Pacific
- LAMEA
o Latin America
o Middle East
o Africa
