Getty Images
The global sports industry generated US$2.3 trillion in annual revenue last year, but could lose up to US$1.6 trillion by 2050 due to accelerating climate change and physical inactivity, according to a report from the World Economic Forum (WEF).
Key details:
- Sports sector’s revenues expected to rise to US$3.7 trillion in 2030 and up to US$8.8 trillion in 2050
- Climate change and rising physical inactivity could result in the industry losing up to US$517 billion in annual revenues by 2030
- The total spend on sports tourism in 2025 estimated to be worth US$672 billion
- Sport generates an estimated 400 to 450 million tonnes of carbon dioxide each year
Context:
According to the WEF, which co-produced the report with Oliver Wyman, four core segments of the sports economy generate US$2 trillion in annual revenue – professional and elite leagues, grassroots sport, sporting goods companies and sports tourism. Five additional connected industries – broadcast and streaming, gaming, nutrition, wearables and technology software, and sport services – contribute a further US$300 billion in income.
Indeed, the growth of sports tourism, the largest source of income for the industry, is expected to account for 60 per cent of total sports economy revenue growth until 2030. The report notes that the growth of the sports economy is also being shaped by the emergence of sport as an asset class, the mainstreaming of women’s sport, and the growth of sport in emerging economies.
However, the WEF warns about the risk accelerating climate change could have on the industry, estimating that just ten countries will have enough snow to host the Winter Olympics by 2040. It also says the growing number of adults unable to exercise regularly will have a detrimental impact on the sector’s future growth.
Comment:
“As the global sports economy enters a phase of accelerated growth, its long-term success will increasingly depend on the choices made today,” the report states. “Positioned at the intersection of environmental stability and societal health, sport has both a responsibility and a strategic opportunity to lead.
“Failure to acknowledge this convergence risks overestimating future returns while undervaluing the true economic, environmental and social costs of inaction. Conversely, decisive and integrated investment can safeguard public wellbeing and reinforce the long-term resilience and competitiveness of the sector.”
Combining richer content, in-depth data and exclusive community benefits, SportsPro+ is your VIP pass into the global sports industry. Discover more here.