A leading report predicted the fantasy sports market growth in 2021 to reach 4.84% year-over-year. The analysis was performed in 2021 by global research leader, Technavio. The report also indicated that the market would grow up to $5.8 billion between 2021 and 2025.
New apps are driving growth
One major factor in the expected growth of the fantasy sports market is the increase in supply. New apps for fantasy sports have launched, piquing interest in sports fans.
As digital communication and networks become faster, cheaper, and more reliable, market growth continues. Larger screens and higher resolutions on devices also enhance user experience.
Low-cost smart devices are becoming more readily available, which increases their demands in economically growing countries like India, Mexico, and China.
These technological factors drive the growth of the mobile gaming market, including fantasy sports.
According to Market Watch, other factors that may increase growth in fantasy sports globally between now and 2025 include:
- Worldwide sporting events are beginning to increase again after shutdowns
- Increased data usage among sports fans
- A rise in the participation of women in sports
While it’s important to note there is no regulation of fantasy sports in Connecticut (no sites are licensed by state regulators to operate), several DFS sites accept players from Connecticut.
How COVID-19 impacted the fantasy sports market
Since the onset of the pandemic, the cancellation and reduction of real-time sports events negatively impacted the fantasy sports market. Today’s positive result is that fans are more digitally connected than ever before.
A worldwide increase in digital presence and smartphone use since the pandemic hit positively impacts the market. Fans convert into fantasy sports app users as digitization becomes more widespread.
According to Market Watch, “With advertising monitoring, digital spending, technical upgrades, and online customer surveys growing, the fantasy sports market share is likely to observe promising growth during the forecast period.”
Consequently, fantasy sports vendors are getting more creative in gaining new customers and engaging their audience. New versions of apps give engagement a boost, and users now have leagues and clubs to enhance their product experience.
Technavio predicts huge growth in North America
There are currently more than 50 million fantasy sports platform users in North America, with the numbers rising every year.
More than 70% of these North American users engage in fantasy sports play, and Technavio projects 45% of the growth during the forecast period coming from the continent.
The popularity of American football in the U.S. is a significant driving factor in North American fantasy sports popularity. Additionally, the region experiences perpetually reliable internet access and strong digital infrastructure, which makes users more active on the platforms.
Fantasy sports are growing worldwide
Western Europe has seen increased demand for fantasy sports options. Their share of the market revenue in 2020 was more than 10%. Between now and 2025, the European region will likely generate around $196 million.
Other notable markets with increasing demand for fantasy sports are:
- South Korea
While still a growing market outside North America, there’s plenty of interest in these other regions. Sports fans are looking for more digital sports entertainment worldwide.
Traditional esports are also growing
Aside from the hit fantasy sports took during the onset of the pandemic, competition is another issue impeding growth.
Fantasy sports platforms aren’t the only sports entertainment available to fans. Mobile video games and traditional esports continue to be a challenge for the Fantasy Sports market.
In fact, esports has grown faster than fantasy sports in recent years. Their platforms don’t have time or location restraints, and gamers can compete through platforms online.
Esports apps also feature a variety of sports activities and entertainment sources that fantasy sports don’t offer.
Who are the major players in the fantasy sports market?
The market for fantasy sports is highly fragmented, with several vendors competing for their share. Some of the top players in the market are currently:
- DraftKings Inc. with their app, DraftKings Daily Fantasy Sports for Cash.
- FanDuel Inc. with the app associated with their Fantasy product line.
- Fox Corp. with their Fantasy Football brand app.
Now that 2021 is behind us, the remainder of the forecast period through 2025 is still on track for growth. With rising interest in sporting events, as well as a growing digital presence worldwide, there’s never been a better time for fantasy sports applications.