Global sporting goods market is anticipated to expand with a higher momentum witnessing a compound annual growth rate of 4.1% over the forecast period i.e. 2016-2023. North America is anticipated to hold the largest consumer base of sports goods market, owing to the increasing participation of younger generation in sports activities. North America market is estimated to reach USD 35 billion by the end of 2023 and the market is anticipated to reach market share of 40% to the global market by the end of forecast period. Asia-Pacific market for sports goods is anticipated to expand at a higher pace over the forecast period owing to the developing sports infrastructure of developing countries coupled with the government initiatives to promote sports activities in the region.
Global sports equipment market is expected to reach USD 82 billion by the end of 2023; this can be attributed towards huge sale of sports product by E-commerce means. Ball sports segment is anticipated to reach USD 28 billion by the end of 2023 witnessing a compound annual growth rate of 4.1% over the forecast period. Now-a-days sports career is achieving popularity due to large number of sports events organised across the globe such as world cup, Olympics, Asian games etc. Sports activities are now made compulsory by the government bodies in school and colleges to encourage the generation towards sports career. Government of all countries across the globe are taking initiatives to develop sports activities in their countries by organising various sports events to encourage the young players and by making huge investment to develop the sports infrastructure of their countries.
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Sports has proved to be one of the most effective tools for entertainment, health and building a sustainable and prosperous future for next generation. For both physical and mental health, it is necessary to include at least one sports activity in daily life routine. The rising awareness and importance of sports activities is majorly driving the sports goods market across the globe.
Global Sporting Goods Market is further classified on the basis of region as follows:
Sports goods market is majorly propelled by rising number of sports events such as Olympics, common wealth games etc. This has increased the participation of consumers in sports activities which will further fuel the demand of sporting goods in upcoming 5-6 years. Rising health concerns along with the increasing personal disposable income of consumer has forced consumers to adopt at least one sports activity in their daily routine. In addition to this, young generation is more active to adopt sports activities as their future career. These factors are anticipated to spur the growth sporting goods market across the globe.
Governments across the globe are organising various sports events to promote sports and games activities in their countries. Government of developing countries such as India and China are making huge investments to develop sports infrastructure in the country. Government in these countries are launching various sports scholarships to encourage the participation of young generation in sports event. These governments’ reforms will further uplift the demand of sports goods in these regions. Sporting goods market is an unorganised market. Poor quality of goods manufactured by local manufacturers due to absence of government regulations, trademark infringement are some factor that are anticipated to hinder market growth of sports goods market.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.