The Australian sports technology sector has reached a valuation of AUS$4.69 billion (US$3.05 billion), according to a recent study by the Australian Sports Technologies Network (ASTN).
The sector has seen a revenue increase of approximately ten per cent over the past 12 months and now represents about 12 per cent of the Australian sports industry, which is valued at AUS$40 billion (US$26 billion). The sports tech industry employs 14,906 people.
In the 2024 financial year, mergers and acquisitions (M&A) and capital raising activity in the sector amounted to around AUS$500 million (US$325 million), with rising interest from both domestic and global investors. The surge in consumer adoption of smartwatches, connected fitness systems, and training apps has significantly contributed to the sector's growth, with a 177 per cent increase in new sports tech companies from 2012 to 2024. As of June 2024, there were 765 Australian sports tech companies in operation, with 40 per cent of them headquartered in Australia, more than in any other state.
ASTN's report indicates that the sports tech industry is transitioning from the 'growth stage' to the 'maturity stage'. Despite a slowing growth rate for established businesses and an increase in company closures, year-over-year revenue growth was still achieved.
Dr. Martin Schlegel, chair of ASTN, commented, “Australia’s outstanding sporting culture, combined with professional achievements and world-class sports education, provides a solid foundation for the sports tech sector’s expansion. Sports tech intersects with many of the enabling capabilities which are part of the priority areas of the Australian economy identified by the National Reconstruction Fund.
The next decade promises exciting opportunities for growth and innovation both domestically and internationally. We can expect advancements in artificial intelligence, positioning, timing and sensing, advanced information and communication technologies as well as advanced manufacturing and materials or quantum technology will help to shape the future of various industries.”
Looking ahead, ASTN anticipates that the Brisbane 2032 Olympic Games and other major sporting events, along with significant sports infrastructure investments, will drive further growth and innovation in Australia’s sports tech sector.