The Booming Fantasy Sports Market

Introduction
Fantasy sports are booming. Many sports fans have grown to like it as f antasy sports have
100 million players and are predicted to rise
In fantasy sports, players create digital teams of actual professional athletes. Fantasy points
are awarded based on sports data analysis. Like genuine sports, teams compete online
using statistical performance.
Players pick, trade, and lineup players to improve their team's statistics.
Football, baseball, basketball, hockey, cricket, and other sports dominate fantasy leagues.
Fantasy football lets players manage fictional football teams online.
Fantasy Sports Market Overview Analysis
According to researches conducted by Arizton (2023), the worldwide fantasy sports industry
was worth roughly USD 21.39 billion in 2021.
With a CAGR of 13.9% between 2022 and 2023, the worldwide fantasy sports market is
expected to reach USD 34.66 billion by 2027. This is up from $20.14 billion in 2022.
Throughout the projected period of 2022-2030, the market is expected to expand at a robust
CAGR of 14%, eventually reaching around USD 78.5 billion by 2030.

The market is expanding due to a number of factors, including the rising number of sports
fans, the development of professional sports leagues, the expansion of digital and internet
infrastructure, and the introduction of fantasy sports applications.
Internal/Micro Environmental Analysis
The Surging Appeal of Professional Leagues Improving Fantasy Sports' Market Potential
The proliferation of professional sports leagues like the EPL and NFL requires inventive
technology deployment. Fantasy sports are employed in many sports to encourage fan
participation, which is boosting the fantasy sports market.
Internet availability and cheaper cellphones in urban and rural areas will also boost the
industry's consumer base. Online game popularity and the ecosystem's capacity to monetize
the sector through in-app advertising, subscription services, and in-app purchases further
contribute to the fantasy sports market's growth.
Mobile applications predicted to have the highest CAGR of 14.8% from 2020 to 2027
(Himanshu V , Roshan D, 2020).

Fantasy sports is growing with the youth demographic. Cellphones, social media, and
fantasy sports allow today's youth to interact with their friends and have more enjoyable
conversations and competitions. There were 1.2 billion 15-24-year-olds making up of 16% of
the global population in 2020. An addition of 700 million more young people (7%) will live on
Earth by 2030. This youth growth will drive fantasy sports market growth (The Business
Research Company, 2023).
Youth's hectic lifestyles are also driving industry growth and demand for risk-and-excitement
entertainment. Fantasy sports are also becoming more popular since gambling is illegal in
many countries.
Porter’s Five Forces
The threat of new
entrants
Bargaining power of
the buyer`
Bargaining power
of supplier
Threat of
substitute
Competitive Rivalry
- moderate
to high
- very few
players
- unsaturate
d market
- No rivalry
among
competitors
- Low to moderate
- Not much
identical
products
- None or Not
many substitutes
- No dominating
players
- High switching
cost
- Low buyer’s
information
availability
- Low to
moderate
- Moderate
suplliers
and quality
of material
- Many
substitutes
- High
switching
cost
- Low to
moderate
- High
differentita
tion
among
the
products
- Low
availablity
of the
substitute
- High
switching
cost of the
buyers
- Low
- Products are
not identitical
- High
switching cost
of the buyer
- High
advertisement
and
promotional
activities

Mordo Intelligience (n.d)
The Fantasy Sports Industry is fragmented, and companies are using strategic collaboration
to enhance market share and profitability. Mid-size and smaller enterprises are obtaining new
contracts and entering new markets thanks to technological advances and product
developments

External/Macro Environmental Analysis
PESTLE Analysis
Political Economical Social Technological Environmental Legal
Favourable Favourable Favourable Favourable Unfavourable Favourable
The strong
political
structures
support
growth and
development
for Women’s
Football
Government
stability will
also attracts
investors
Consumer
Disposable
Income:
household
income has
steadily
increased by
0.7% every
year
between
FYE 2020
and FYE
2022. (Office
for National
Statistics,
2023)
Local and
international
price
fluctuations
can cause
widespread
inflation and
currency
depreciation.
Attitude towards
Savings: 77% of
British people have
changed their
approach to saving
after Covid 19
(Raisin, 2020)
Women’s football is
having record-
breaking figures
acorss fan
attendance,
investment,
broadcasting, and
overall fan interest
A growing trend in
cultural feminism
Increasing youth
population
Increasing interest of
girls in Women’s
football due to recent
events like Euro 2021
Social trend as it
motivates players by
bring social
interactions,
competition,
entertainment/escape
AI integration in the
sports industry will
change the data
presentation
allowing users to
get accurate and
fast information
about sports.
High rate of nternet
penetration, social
media usage
Cross-platform App
Development
Cloud Takeover in
Gaming
Big data analytics
helps better
understand user
behavior and make
changes in the
game to provide a
better user
experience
The innovation of
blockchain
guarantees the
Biodegradabl
e plastics
criticism.
Recycling
costs
Increased risk
pff being
considered as
illegal since
fees can be a
bet or wager
Some
business
models run a
risk of being
more chance-
based than
skill-based:
shorter the
duration of the
contest
means less
skill required
= more likely
legal risk

and dopamine. allegiance and
security of the data
records and
generates trust
without third-party
interference.
Fantasy Sports
Services Global
Market Report
(2023)
The Development of New and Innovative Virtual Fantasy Sports Competitions As a result of
the Coronavirus Pandemic, Market Expansion Has Been Revitalized
 Consumer habits have changed significantly due to the coronavirus pandemic. Due to
lockdowns and indoor restrictions, online gaming has skyrocketed . The pandemic
canceled or postponed several sports events and competitions resulting prominent
fantasy sports companies launching a variety of cutting-edge virtual events, such as
quizzes, product launches, and the addition of new sports, to guarantee customer
interest and grow the market. Online content providers and broadcasters are also
helping fantasy sports flourish. (Vegas, 2018).
However, the Russia-Ukraine conflict temporarily impeded global economic recovery from
the COVID-19 pandemic. Economic sanctions put on several countries due to the conflict
between these two powers have caused global commodity and service inflation. Fantasy
sports will reach $40.88 billion by 2027, a 9.0% CAGR.