The Signs Are Everywhere
Industry life cycles are as universal in business as they are in nature, moving from introduction and growth through maturity and eventual decline. If the introduction phase for Sports-tech was marked by raw invention, the growth phase is distinguished by rapid scaling, consumer validation, and strategic jockeying for market share. We see the hallmark signs everywhere:
- Product Selection and Tiering: No longer does the savvy coach or fan have just one or two tech solutions to consider. Today, there are “premium,” “average,” and “low-cost” versions of nearly every category: AI coaching tools, GPS trackers, smart equipment, wearables, automated video cameras, and more. Niche categories often offer 5–15 choices, each targeting a distinct market segment. Comparing "apples with apples" is where a strong CTO, CIO, or CDO is needed.
- M&A Activity and Industry Consolidation: One of the clearest indicators of the growth phase is a flurry of mergers and acquisitions. Major tech, software, and sports brands are snapping up smaller, innovative players or building in-house solutions, reducing fragmentation and signalling acceptance of Sports-tech’s commercial viability.
- Exploding Demand: The appetite for data-driven personalisation, automation, and creative solutions continues to grow, with adoption stretching well beyond the playing field into sports, entertainment, health, and gaming. Modern fans and athletes expect insight, immediacy, and customisation, all powered by increasingly sophisticated Sports-tech.
- AI-Driven Disruption: Artificial intelligence is streamlining the landscape, helping winners rise and eliminating underperformers. Advanced data models are being used not just for on-field analytics, but also to optimise athlete health, fan engagement, and sports business operational efficiency. In the Sports Management Technology market alone, there are 70+ companies, which seems excessive and unlikely that all will survive.
Why the Industry Life Cycle Matters
Understanding what phase an industry occupies is critical for companies and investors alike. Businesses use this knowledge to inform strategies around product innovation, R&D expenditure, sales approaches, and future expansion. For investors, recognising an industry’s phase helps in deciding when to get in or out for optimal returns.
What’s Next? Winning Strategies for the 2025+ Sports-tech Era
As Sports-tech continues to scale:
- Strategic Clarity Is Essential: The competition is fierce. Clear strategy, on product, target segments, and value proposition, will be more vital than ever.
- Double Down on Competitive Advantage: Whether through proprietary AI models, exclusive data partnerships, or seamless user experiences, know what sets you apart.
- Look Beyond Sports: High-performance solutions often originate in seemingly unrelated areas like defense or health. Venue solutions might look toward shopping malls or airports. Fan engagement strategies should take cues from broader entertainment platforms.
- Embrace AI: AI isn’t just hype, it’s transformational. Those slow to adopt risk obsolescence as the sector’s pace continues to accelerate.
The XV Research team believes the growth phase of Sports-tech is finally here, ushering in an era of rapid innovation, fierce competition, and boundless opportunity for those ready to play.
