Market Overview:
The Fantasy Sports Market size is expected to grow from USD 27.16 Billion in 2022 to USD 90.90 Billion by 2030, at a CAGR of 16.3 % during the forecast period.
Fantasy sportshave transformed the online gaming landscape, offering a captivating experience where participants can construct virtual teams of real-life sports players based on personal preferences. Acting as both general managers and field managers, players engage in drafting, trading, and crafting lineups to optimize their teams' statistical performance. These virtual teams then compete against each other, relying on the actual game performances of the selected players to earn points.
The success of fantasy sports market lies in the engagement it fosters among fans, who now have added incentives to watch more sports events, regardless of the teams involved. Fantasy games like Basketball, Football, Cricket, and Baseball have gained immense popularity, propelling the sector's growth. The industry has become a thriving business, generating annual revenues exceeding $1 billion since the early 2010s.
Top Key Players for Fantasy Sports Market:
Games24x7 (India), FanDuel (USA), Sorare (France), Yahoo (USA), ESPN (USA), Fantasy Labs (USA), FOX Sports (USA), DraftKings (USA), Draftea (Mexico), Roto Sports (USA), RealFevr-Fantasy (Portugal) and Other Key Players.
Market Dynamics and Factors for Fantasy Sports Market:
Drivers:
Growing Legalization, and Strategic Partnerships
The fantasy sports market is driven by various factors, including the growth in digital infrastructure with 44.9% of the world's population predicted to own a smartphone by the end of 2020, fostering user engagement. The legality of fantasy sports being defined as a game of skill has led to its introduction in many countries. Partnerships with sports leagues, such as DraftKings' $250 million deal with ESPN and collaborations with NFL teams, contribute to increased popularity. Moreover, the flow of big money through Venture Capitals and Corporate investments supports startup gaming companies to leverage new technologies and scale up significantly.
Opportunities:
Adopting Newest Technology and Revenue Strategies
The adoption of the newest technology in fantasy sports, including secure payment gateways, user-friendly interfaces, blockchain-based apps, and fantasy chatbots, presents exciting opportunities for the market. Integrating these innovations can enhance user experiences, attract a broader audience, and improve customer satisfaction. Additionally, by implementing effective revenue generation strategies, such as targeted advertising, premium subscriptions, and sponsorships, fantasy sports platforms can unlock new avenues for growth and profitability. Embracing cutting-edge technology and refining business approaches will position fantasy sports operators for sustained success in the competitive market.
Segmentation Analysis of the Fantasy Sports Market:
By Game, Fantasy football dominates the fantasy sports market, boasting a massive fan base of over 35 million players worldwide. Its popularity surpasses other sports like Ice Hockey, Baseball, and Basketball, making it the most sought-after fantasy sport globally. The highest number of participants showcases the overwhelming preference for fantasy football, capturing the interests of sports enthusiasts on a large scale.
By Age of Player, the age group between 25 to 40 years old dominates the fantasy sports market, with 38% of total fantasy sports players falling within the range of 25-34 years, as per the Fantasy Sports & Gaming Association's 2020 survey. Similarly, in India, around 40% of fantasy sports users were within the 25 to 34 years age group in 2022, followed by users between 18 and 24 years old. The total number of fantasy sports users in India reached 180 million in fiscal year 2023.
Regional Analysis of the Fantasy Sports Market:
North America dominates the Global Fantasy Sports market due to its robust IT infrastructure and rising user base, supported by high-speed internet and growing interest in sports like football and baseball. Incorporating advanced technologies such as AI, Blockchain, and Immersive Interfaces attracts new users, leading to increased profits. APAC and Europe follow in market share, with the growing popularity of fantasy sports in countries like India expected to drive future growth.
Key Industry Development:
In May 2022, DraftKings Inc. announced the launch of its new online sportsbook and online casino products in Ontario, Canada. This Sportsbook will provide people of Ontario with legal and regulated opportunities to place bets across various sports leagues and sporting events, including the 2022 NHL Playoffs, Major League Baseball, Major League Soccer, this year’s highly celebrated FIFA World Cup and more.
