7 sports tech trends to watch in 2023

The link between sport and technology grows stronger each year as athletes, clubs, governing bodies, broadcasters and brands use new innovations to improve their businesses on the field, identify operational efficiencies and grow their bottom line. increase.

Tech giants such as Amazon, Google, and Microsoft have partnered with the world’s sports giants to provide enterprise-grade infrastructure and services. And the burgeoning startup ecosystem has the flexibility and entrepreneurial spirit to create entirely new markets.

Despite the challenging macroeconomic environment, sports tech companies secured US$7.3 billion in funding by the end of 2031.^st October according to SportTechX, but according to Drake Star Reports, there have been 734 deals closed in the sector in the first nine months of 2022.

Over the next 12 months, the previously experimental technology will be widely adopted, the first steps into entirely new areas, and some market modifications along the way.

The link between technology and sport will be strengthened in 2023

1. The sports industry explores the potential of generative AI

The sports industry is embracing artificial intelligence (AI) technology in everything from creating digital content to predictive injury prevention. But just like in the corporate world, these algorithms analyze existing datasets to automate actions, detect patterns, and provide recommendations. Generative AI can create entirely new things from these insights, paving the way for a new wave of creative and functional opportunities.

Companies like OpenAI and tools like ChatGPT can provide nuanced answers to human questions, while DALL-E can create images based on those requests. The ability to generate stories, images, and even videos is extremely valuable to the sports industry, and this technology can be leveraged to create everything from marketing materials and news articles to customized multimedia content.

AI is already used to create video highlights, but based on predefined parameters. With Generative AI, fans can request specific packages and sponsorships to ensure your branding is always visible. Perhaps it will even be possible to create customized non-fungible tokens (NFTs).

The benefits are equally applicable to elite and amateur sports. In fact, generative AI has the potential to enable lower league, recreational, and youth sports activities that were previously not possible due to lack of resources.

This enthusiasm must be tempered with a few words of caution. The technology is still in its infancy, and as anyone who has read an automated baseball box score report will tell you, some use his cases are a work in progress. There are also ethical issues with generative AI, given its ability to synthesize human voices and images.

But the seeds of revolution were sown. According to one study, the market is expected to be worth more than US$110 billion by the end of his decade, with OpenAI alone worth US$29 billion, making sure suitors don’t miss out on the next big thing. We are passionate about in technology.

The Australian Open launched a unique NFT project last year (Image credit: Australian Open)

2. Web 3.0 will mature into something meaningful

It’s hard to find nuances in conversations about Web 3.0. Evangelists believe blockchain-based technology is the answer to all the ills of sports and society, but critics don’t believe NFTs will become anything more than an exploitative vehicle for speculation. It’s the suggestion that the answer isn’t black and white that unites the two disparate factions with their disgust.

There are several NFT projects that use sports to persuade the public to give up their cash. Some are poorly thought out, while others are aimed at getting rich quick. In both scenarios, people were left out of their pockets as the market crashed. But just because you can “own” a digital asset in Web 3.0 doesn’t necessarily mean it’s worth it. Sure, some of his NFTs are as economically valuable as works of art, but others have a price trajectory similar to physical commodities and exist for a purpose.

Over the next 12 months, the sports industry will take a more cautious approach to Web 3.0, recognizing the technology’s long-term benefits as opposed to short-term revenue gains. Digital goods gain real utility, foster a sense of community, and provide tangible satisfaction to fans. Blockchain offers different models for new and existing use cases, whether it is ticketing, memberships or trading cards, and the value of these assets is negligible or tied to this utility.

Buying something in Web 3.0 is like buying something in the real world, not necessarily as an investment.

3. Mixed reality is finally gaining momentum, but not as far as the Metaverse

Virtual Reality (VR) has technically emerged for several generations, but has yet to find its audience. It lacks ambition, but lacks consumer demand and adoption of the devices and infrastructure needed to create, distribute, and consume VR content.

There are signs that this is about to change. The meta’s insatiable quest to reposition itself has increased awareness, attracted developers, and provided some compelling use cases. There’s an officially licensed NFL Pro Era game to put your back on, Golf+ helps amateurs hone their game, and it has pro-grade training applications. Meanwhile, Sony hopes PlayStation VR 2 will find favor among more dedicated gamers, and HTC unveiled its more portable Vive XR Elite headset at the Consumer Electronics Show (CES) in Las Vegas. bottom.

Gaming reliance and hardware costs remain barriers to adoption, but if Apple’s long-awaited augmented reality (AR) device finally arrives in 2023, 2023 will always threaten to invade the world. It could be a breakthrough year for some technology. mainstream.

However, the metaverse still finds its feet. There will be more partnerships, more proofs of concept, and more innovation from some of the major players in the industry, but we don’t yet have an audience for these new digital environments. , 2023 is not a breakout year.

4. Platform battles heat up

The world of sports once had clearly defined limits. Broadcasters, publishers, developers and bookmakers operated in their own spheres of influence, and fans moved between them for different things. The digitization of sports is acting as a centrifugal force on these previously disparate services, with the emergence of multifunctional platforms that believe that specialization is no longer the key to success.

These platforms may still have core propositions, whether it be video, content, or whatever, but this is about allowing users to spend as much time as possible in your application or ecosystem. It’s wrapped in an array of supporting features that encourage you to spend. This creates more data and more revenue opportunities.

DAZN is betting on streaming services, adding social features, NFTs, OneFootball offers a range of multimedia and Web 3.0 experiences, and FanDuel is involved in video. E-commerce specialist Fanatics is also launching a bookmaker.

But perhaps the most interesting platform will be Apple’s iOS once a partnership with Major League Soccer (MLS) comes into effect. It will be interesting to see how the iPhone’s new sports-specific features and native applications help support the company’s biggest-ever rights move.

5. Reports of the disappearance of connected fitness turn out to be exaggerated

2022 was the year that the connected fitness market, which boomed during lockdown, suffered a painful correction. Demand for high-end equipment has waned as fitness enthusiasts have returned to gyms and the status associated with such purchases has declined.

However, all this means further democratization and will put the segment on a stable long-term basis. Peloton makes equipment available via Amazon and offers refurbished bikes via eBay, but its platform is available across multiple devices. Apple Fitness+ goes from strength to strength by making it available to anyone with an iPhone, not just an Apple Watch. Meanwhile, platforms like Zwift are still making waves, and Netflix offers fitness content from Nike Training Club.

The content is there and wearables are still selling well. In fact, according to SportTechX, hardware continues to attract investor interest, securing his 18.4% of all sports tech funding in 2022.

The difference is that it is used in wearables or no device at all. Gone are the days of tightly integrated hardware and software, but connected fitness remains an area of ​​optimism.

Stadiums are using technology to bridge the gap with the at-home experience

6. Digital stadiums aren’t sci-fi

Over the past decade (and possibly more), there have been countless pitches from tech industry executives about how technology will revolutionize the stadium experience. They offered a utopia of how to order food and drink from your seat and watch replays on screens embedded in your seat.

Both expectations and technology have advanced significantly. Burgers and pints delivered from the packed stands of Twickenham Stadium may seem fantastical, but smartphones don’t require specialized equipment to be installed. The newest stadiums are built with future-proof infrastructure, while others are retrofitted.

By 2023, it appears that the technology has matured enough to solve certain problems, venue operators have the confidence and resources to invest, and audiences are willing and willing to adopt new methods. Mobile ordering, his 5G applications inside stadiums, and smart signage are expected to proliferate, leading to more checkout-free retail outlets, biometric entry, and blockchain-enabled mobile his ticket sales.

“The conversation will shift more to specific interest groups…[and] Ultimately, we believe communities will evolve around products such as NFTs and function through technologies such as blockchain. ”

Lewis Wilitshire, CEO of Seven League

7. Social media is divided

Social media is a fundamental part of the modern sports experience, whether at home or in the stadium. Facebook, Instagram, and TikTok are all popular platforms for sharing and consuming sports-related content, but few have the influence (if not the reach) of Twitter. Continued uncertainty on Twitter since Elon Musk acquired it for his $44 billion in October has reassessed the industry’s relationship with the social network when it comes to content creation and advertising.

Some brands are concerned about content moderation, while others lament the job cuts that have affected Twitter’s sports business. While Twitter will continue to retain its following and remain an important tool for sports, the issues raised reflect a broader shift from the era of unfiltered public social media.

Facebook now values ​​private groups as much as it does news feeds. It can be argued that Instagram and TikTok are consumption platforms and WhatsApp groups are hotbeds of conversation. Even Twitter recognizes how the wind is blowing with its circle feature.

In the Web 2.0 era, message boards and forums were the earliest forms of user-generated content, forming communities around shared passions and often using pseudonyms. While sports-focused social networks are unlikely to see widespread adoption, Discord and Reddit are becoming important channels, providing insight into where things are headed.

Seven League CEO Louis Wilshere told sports professionals, “There is a shift towards privacy in the industry and we believe the era of publishing timelines on all social media is coming to an end. I will,” he said.. “Anyone who follows me on Twitter will see posts about the San Francisco 49ers, Tottenham Hotspur, and I went to Bruce Springsteen’s gig. The proposition: why would anyone but me be interested in all this?

“The conversation will shift more to specific interest groups…[and] Ultimately, we believe communities will evolve around products such as NFTs and function through technologies such as blockchain. ”