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2023

Sports Sponsorship Market

Sports Sponsorship Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, by Sports, by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

CG : Sports, Fitness and Leisure

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Author's: Jaya Bundele | Roshan Deshmukh
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Sports Sponsorship Market Research, 2032

The global sports sponsorship market size was valued at $73.8 billion in 2022, and is projected to reach $151.4 billion by 2032, growing at a CAGR of 7.1% from 2023 to 2032.A vital and dynamic part of today's sporting landscape, sports sponsorship creates a strong bond between commercial interests and athletic endeavors. It includes monetary assistance, brand recognition, and strategic alliances that allow each party to accomplish its own objectives. Sponsorship has evolved into a crucial growth engine for everything from international athletic events to neighborhood community leagues, enabling a connection where athletes and organizations prosper, and businesses expand their reach and reputation. Sports sponsorship has become a fascinating way for businesses to interact with a variety of audiences, foster brand loyalty, and associate themselves with the enthusiasm and fervor that characterize the world of sports in this period of increased competitiveness and consumer involvement.

Sports Sponsorship Market

MARKET DYNAMICS

First, the market is stimulated by sports' enormous attraction and popularity around the world. Sports have a special talent for involving audiences and connecting cultural and geographic divides. Millions of people watch major sporting events including the Olympics, FIFA World Cup, Super Bowl, and Formula 1 races each year giving sponsors a unique platform to promote their companies to a wide spectator.

Second, the requirement for sponsorship prospects has increased because of the growing commercialization of sports. The fiscal support of leagues, sports teams, and individual athletes and the financing of talent and improvement of the fan experience is largely reliant on sponsorships. Sponsors are now seeking exclusive associations and the right to link their labels to the most well-known sporting franchises, creating a competitive environment. This is driving the growth of global sports sponsorship market growth. 

The changing customer behavior and patterns of communication are a significant additional factor. More than ever before, fans are connected to and engaged with their favorite sports and players because of the growth of digital media and social networks. Social media marketing, influencer partnerships, and immersive digital experiences, this has given sponsors new ways to connect with their target audience.

The market for sports sponsorship has also seen a change toward partnerships with a purpose. Companies are working harder than ever to match their brands with values and social causes that appeal to consumers. In order to generate a favorable brand perception and connect with socially conscious consumers, sponsors are now focused on sponsoring diversity and inclusion initiatives, environmental efforts, and community development activities.

In addition, the advancement of technology has had an enormous impact on sports sponsorship. The way sports enthusiasts experience the game is changing because of technologies including virtual reality, augmented reality, and data analytics, which are also giving advertisers new ways to connect with followers and evaluate the victory of their sponsorships.

As a result, the sports sponsorship business is distinguished by fierce rivalry, changing consumer preferences, and a constant sports sponsorship market demand for innovation. To maximize their brand visibility, create lasting relationships with fans, and accomplish their marketing goals, sponsors must remain flexible, adjust to changing trends, and carefully link themselves with the ideal sports franchises.

SEGMENTAL OVERVIEW

The global sports sponsorship market is analyzed on the basis of type, sports, application, and region. By type, the market is divided into signage, digital activation, club & venue activation, and others. By sports, the market is segmented into football, hockey, cricket, and others. Depending on the application, it is classified into competition sponsorship, training sponsorship, and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, United Arab Emirates, South Africa, and the rest of LAMEA).

BY TYPE

Sports Sponsorship Market by Type

As per type, the signage segment dominated the global market in 2022 and is anticipated to maintain its dominance throughout the sports sponsorship market forecast period. Sponsors prominently display their brand logos, slogans, and messages on signage. Through this exposure, sponsors strengthen their associations with a sporting event or property while also raising brand knowledge and recognition. The placement of signage in high-traffic venues like stadiums, arenas, and racetracks strategically guarantees that it receives the most exposure to fans in person, on television, and online. Signage frequently alters according to sponsorship levels. Major sporting events or venues offer various sponsorship levels with varied amounts of signage visibility. Prime signage sites, like the centerfield billboard at a baseball stadium or the courtside LED boards in a basketball arena, are often reserved for higher-tier sponsors. Sponsors are encouraged to commit more money thanks to this tiered strategy, which also increases brand visibility.

BY SPORTS

Sports Sponsorship Market by Sports

The football segment dominated the global sports sponsorship industry in 2022. In recent years, purpose-driven collaborations have become more prevalent in football sponsorship. Sponsors are putting more of an emphasis on programs that support community growth, sustainability, and social issues. Brands compete to fund programs that encourage inclusivity, diversity, and positive change in order to develop a relevant and socially responsible brand image, in line with football's enormous social influence. Women's football has expanded and gained more attention, which has given sponsors additional options. Brands are investing in partnerships to promote the growth and promotion of the women's game as they recognize the potential of women's football to reach a wide and engaged audience. Sponsors have excellent opportunities to interact with devoted fans and improve women's sports in this newly emerging area of football sponsorship.

BY APPLICATION

Sports Sponsorship Market by Application

The training sponsorship segment is predicted to show the fastest growth in the global sports sponsorship market during the forecast period (2023-2032). Sponsors are encouraged to invest in training sponsorship to find and develop promising talent. They look to support athletes or teams that have remarkable talent, skill, and the potential for future success. Sponsors want to aid in the growth of athletes and increase their chances of competing at the highest level by offering training tools. As an athlete's growth is a slow and ongoing process, training sponsorships frequently involve long-term relationships. Sponsors are aware that athletes must get consistent assistance over a long period of time in order to advance and accomplish their objectives. Through these collaborations, sponsors establish long-lasting connections with athletes and turn them into brand ambassadors who increase brand awareness and loyalty over time.

BY REGION

Sports Sponsorship Market by Region

Region wise, Europe is predicted to dominate the sports sponsorship industry with the largest sports sponsorship market share during the forecast period (2023-2032). The acceptance of football as a sport in Europe is unquestionable, and the sponsorship industry exhibits this interest. Premier League in England, Bundesliga in Germany, La Liga in Spain, and Serie A in Italy are some of the key European football leagues that acquire a lot of media exposure and sponsorship resources. Companies engage in severe competition for associations with the best teams, recognized athletes, and foremost competitions including the FIFA World Cup and UEFA Champions League. A strong market exists for regional and local sports sponsorships across Europe in addition to the well-known football sponsorships. This includes supporting sports like rugby, cricket, cycling, racing, tennis, basketball, and others that have devoted followings in certain nations or areas. Through tailored sponsorships, businesses frequently try to engage with local populations and capitalize on the enthusiasm for certain sports in specific geographic areas.

COMPETITION ANALYSIS

Research and analysis of key players involved, including Nike Inc., Adidas AG, PepsiCo Inc., Red Bull GmbH, Puma SE, Macron S.p.A., Castrol India Limited, Anheuser-Busch InBev SA/NV, Electronic Arts Inc., and ASICS Corporation.

Gaining the right to sponsor a certain sporting property is one component of competitiveness. Popular teams and significant sporting events draw a large number of sponsors, prompting fierce competition for exclusive alliances. Companies compete on the basis of their financial capabilities, brand equity, and strategic alignment with the sports property's target audience. During sporting events, sponsors vie for the greatest brand exposure. Included in this are major logo placements on apparel, billboards, stadiums, and online platforms. An organization has a better chance of engaging and attracting the audience the more visible it is. Businesses plan to stand out from the crowd by procuring prominent advertising spaces and utilizing innovative activation strategies.

Sponsors must effectively activate their sponsorships in order to maximize their return on investment. There is competition in developing memorable fan experiences, including interactive fan zones, experiential marketing activations, privileged access to athletes, and distinctive advertising campaigns. Sponsors work to stand out from the competition by providing unique and engaging experiences that connect with fans and increase brand affinity. Getting endorsement deals with well-known athletes is another facet of competition. Businesses fight to match their brands with athletes who have devoted fan bases, strong personal brands, and favorable public perception. Endorsements take the form of product placements or team marketing initiatives, with sponsors looking to stand out from the crowd by gaining exclusive alliances with popular athletes.

In the era of data-driven marketing, sponsors compete to precisely evaluate the influence and return on investment of their sponsorships. This involves monitoring consumer mood, website traffic, social media activity, and brand exposure. To acquire insights about the efficacy of their sponsorships, businesses invest in high-end analytics tools and processes. This gives them the prospect to enhance their approaches and attain a competitive advantage. The demand for sponsorship prospects in esports, virtual sports, and online streaming platforms is strengthening due to the development of digital media and streaming platforms. Understanding the capacity of these new platforms to associate with younger, tech-savvy audiences, organizations are forcefully looking for sponsorship prospects in these sectors to stay ahead of the curve.

SOME EXAMPLES OF PARTNERSHIP IN THE MARKET

  • In August 2022, Electronic Arts Inc. partnered with LaLiga, which is a leading company in the field of football entertainment as the title sponsor of all LaLiga competitions.
  • In June 2023, PepsiCo, Inc. partnered with EA Sports FC in order to display its Pepsi, Gatorade, and Lay’s brands promoted on the EA Sports FC platform.
  • In June 2023, Anheuser-Busch InBev SA/NV extended its partnership with FIFA, which is an international association football competition, as the official beer sponsor of the FIFA Women’s World Cup 2023 and FIFA World Cup 2026.
  • In June 2022, Macron S.P.A. extended its technical sponsorship partnership with the Albanian Football Federation. Through this extended partnership, Macron supplies technical sportswear to the youth teams of all the football academies associated with the federation.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the sports sponsorship market analysis from 2022 to 2032 to identify the prevailing sports sponsorship market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the sports sponsorship market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global sports sponsorship market trends, key players, market segments, application areas, and market growth strategies.

Sports Sponsorship Market Report Highlights

Aspects Details
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Market Size By 2032

USD 151.4 billion

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Growth Rate

CAGR of 7.1%

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Forecast period

2022 - 2032

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Report Pages

250

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By Type
  • Club and Venue Activation
  • Others
  • Signage
  • Digital Activation
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By Sports
  • Football
  • Hockey
  • Cricket
  • Others
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By Application
  • Competition Sponsorship
  • Training Sponsorship
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, UK, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, Saudi Arabia, United Arab Emirates, South Africa, Rest of LAMEA)
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Key Market Players

Adidas AG, Red Bull GmbH, Macron S.p.A., PepsiCo, Inc., Puma SE, Anheuser-Busch InBev SA/NV, Nike, Inc., ASICS Corporation, Electronic Arts Inc., Castrol India Limited

Analyst Review

The perspectives of the leading CXOs in the sports sponsorship industry are presented in this section. Companies benefit greatly from sports sponsorship. They increase their brand's visibility, connect with a sizable and diverse audience, interact with customers and fans, and link their brand to the good feelings, ideals, and experiences that come with sports. In order to maximize their sponsorship investments, businesses engage in promotional activities and campaigns known as sponsorship activation. This includes product placement, experiential marketing, digital marketing, traditional media advertising, social media participation, and more.

As a result of numerous sporting events being postponed, canceled, or held without spectators, the COVID-19 epidemic had a substantial effect on the market for sports sponsorships. As a result, sponsorship expenditure declined in 2020; however, it is anticipated that the market will recover as soon as sporting events resume and fan involvement rises. The market for sports sponsorship is being shaped by several rising developments. There are several examples of this, such as the increase in esports sponsorships, in which businesses lend their support to professional gaming teams or events, as well as the greater emphasis on sustainability and social responsibility in sponsorship activities.

Author Name(s) : Jaya Bundele | Roshan Deshmukh
Frequently Asked Questions?

The global sports sponsorship market was valued at $73,807.2 million in 2022, and is projected to reach $151,394.7 million by 2032, registering a CAGR of 7.1% from 2023 to 2032.

The forecast period in the Sports sponsorship market report is 2023 to 2032.

The base year calculated in the Sports sponsorship market report is 2022.

The top companies analyzed for the Sports sponsorship market report are Nike Inc., Adidas AG, PepsiCo Inc., Red Bull GmbH, Puma SE, Macron S.p.A., Castrol India Limited, Anheuser-Busch InBev SA/NV, Electronic Arts Inc., and ASICS Corporation.

The signage segment is the most influential segment in the Sports sponsorship market report.

Europe holds the maximum market share of the Sports sponsorship market.

The company profile has been selected on the basis of key developments such as partnership, product launch, merger and acquisition.

The market value of the Sports sponsorship market in 2022 was $73,807.2 million.

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Sports Sponsorship Market

Global Opportunity Analysis and Industry Forecast, 2023-2032