Sports technology refers to the integration of digital tools, data analytics, hardware, and software solutions into the world of athletics and fan interaction. It spans everything from athlete performance tracking and digital fitness platforms to fan experiences powered by VR/AR, data‑driven prediction markets, and analytics platforms that enhance strategic decision‑making for teams and businesses.
The integration of technology into sports is rapidly accelerating. From analytics and data tracking to fan engagement and digital ticketing, numerous companies are making a meaningful impact. Investing in these sports‑related technology companies can offer exposure to a dynamic growth sector, and the last two years have been record years for sports tech deal value and M&A activity, underscoring the momentum behind this vertical.
The sports tech industry is already valued in the tens of billions and is poised for significant growth. According to Fortune Business Insights, the global sports technology market is projected to surge from approximately $32.47 billion in 2025 to $139.41 billion by 2032, reflecting a compound annual growth rate (CAGR) of 23.1%. Other industry reports, such as those from SNS Insider, support this optimistic outlook, forecasting market valuations reaching well into the hundreds of billions by the early to mid-2030s.
This rapid growth reflects a few key drivers, including the increasing adoption of wearable performance tech, data analytics platforms, immersive digital experiences, and advanced fan engagement systems. The pace of innovation has made sports tech one of the most dynamic segments within the broader sports business ecosystem.
As Steve Dymant, Director of Alternative Investments at SteelPeak Wealth, explains, sports as an asset class is increasingly attractive to institutional investors due to its unique characteristics and rapid evolution. According to Dymant, “Sports are relatively new to institutional capital,” which means there is less competition and greater potential for early-mover advantage. He also points out that the sports ecosystem is “extremely vast yet requires specific vertical expertise” to navigate effectively.
Perhaps most compelling is the sector’s momentum. Dymant notes that the asset class is “highly dynamic, driven by the institutionalization of sports, innovation around technology, media, and entertainment, and the changing consumption preferences of fans.” Because of this, investment outcomes are expected to vary widely over the next five to ten years. To manage this dispersion, SteelPeak employs a diversified, multi-manager approach designed to capture the breadth of opportunity within a portfolio that will target approximately 125 underlying individual investments.
In essence, sports technology is more than a niche: it’s an expanding universe where innovation and investment converge. From elite athlete training platforms to immersive fan engagement tools, sports tech is transforming how the game is played, watched, and monetized.
As investors increasingly look to tap into this fast-evolving sector, several categories of sports technology are emerging as key areas of focus. Below, we explore some of the most active and investable segments within the industry.
One of the earliest and most impactful waves of sports tech innovation centers on performance analytics, which are tools that help athletes and teams optimize training, reduce injury risk, and maximize competitive output.
A notable example is SuperAnnotate, a platform that accelerates computer vision workflows and data labeling, enabling detailed tracking of movement, biomechanics, and other key performance metrics. These technologies analyze video, sensor-based, and biomechanical data to deliver insights that were once only available through specialized lab environments. Such platforms are helping democratize elite performance analysis, making cutting-edge insights more accessible to teams, coaches, and individual athletes alike.
While performance tech often targets professional athletes, digital fitness platforms have opened new frontiers in the consumer market, blending technology, coaching, and community into scalable business models.
One standout is Ladder, a fitness app that connects users with professional strength coaches and custom training plans. By leveraging data and digital engagement tools, platforms like Ladder make structured, high-performance training accessible to everyday users. These solutions reflect a broader shift in consumer behavior toward at-home, connected fitness experiences, a trend accelerated by the pandemic and now embedded in long-term wellness habits.
As a result, digital fitness represents a significant growth channel within sports-adjacent technology, attracting investor attention for its subscription-based revenue models and expansive market reach.
Another rapidly expanding vertical in sports tech is fan engagement, where immersive technology is redefining how audiences experience live events. Companies like Cosm are leading the charge by creating shared virtual spaces that deliver real-time sports viewing experiences through extended reality (XR) environments. These platforms offer fans the ability to watch games from new perspectives, interact socially in virtual arenas, and experience personalized content, bridging the gap between physical attendance and digital engagement.
This convergence of entertainment and technology is particularly appealing to younger, digitally native audiences and is driving innovation in broadcasting, licensing, and content delivery. As immersive media continues to evolve, it represents a fertile space for venture capital and strategic investment.
At the intersection of sports, technology, and finance lies a booming sector: prediction markets and data analytics. The rise of fantasy sports, sports betting, and data-driven fan engagement has created demand for robust infrastructure that can analyze real-time performance metrics, odds, and user behavior. Companies operating in this space are building powerful engines that fuel everything from sportsbook operations to fan-facing prediction platforms.
Notably, these systems rely on high-quality, proprietary data and advanced analytics to deliver accurate insights and personalized experiences. This has opened the door for new monetization strategies tied to user engagement, while also drawing institutional investment from firms looking to capitalize on sports betting’s legal expansion and increasing mainstream appeal. As Citrin Cooperman notes, these sectors offer strong recurring revenue potential and are foundational to the evolving sports business model.
While sports tech presents exciting growth potential, it also requires careful navigation. Key sectors such as performance analytics, fan engagement, digital fitness, and betting platforms are drawing investor interest due to their recurring revenue models and scalable infrastructure.
However, the industry is not without risk. Rapid innovation leads to high competition, and issues like data privacy, particularly with biometric and fan data, continue to emerge. Immersive technologies and stadium solutions can also demand significant capital investment.
A diversified, multi-manager approach can help mitigate these risks while capturing opportunities across this dynamic and evolving sector.
At SteelPeak Wealth, we help investors navigate dynamic sectors like sports technology through diversified portfolio strategies. From performance analytics and digital fitness to immersive fan engagement platforms, we view sports tech as a long-term thematic growth opportunity.
To learn how this sector could fit into your broader investment strategy, reach out to your advisor or schedule a brief consultation. We're here to help you align innovation-driven investments with your financial goals.
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