Sports are already a global economic force, contributing around 1% of the world's GDP, or roughly $600–700 billion, generating employment, and driving tourism. Read on to find out how the Fourth Industrial Revolution (4IR), driven by technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, robotics, and data analytics, is transforming the global sports industry into a holistic ‘sports economy’.

From the times when events like the Olympics and other grassroots initiatives supported underserved communities, sports has been known for its unparalleled ability to unite people, drive economic growth, and inspire societal change. 

Born into poverty, Edson Arantes do Nascimento, famously known as Pele, used his football talent to rise from humble beginnings. Pele's international success with Brazil, including three FIFA World Cup wins (1958, 1962, and 1970), transformed his life and inspired millions of underprivileged youth worldwide to pursue their dreams through sports.

Speaking of modern times, sports have been leveraged by the Fourth Industrial Revolution (4IR), characterised by cutting-edge technologies like Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, robotics, and data analytics to serve society in better ways, including better connecting the fan and athlete community and providing newer ways to monetise.

The sports market size has grown strongly in recent years. It will grow from $480.12 billion in 2023 to $506.93 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%.

Within this context, sports stand at a unique intersection—poised to harness the power of 4IR to redefine socio-economic models and create more inclusive, sustainable futures.

Sports are already a global economic force, contributing around 1% of the world's GDP, or roughly $600–700 billion, generating employment, and driving tourism. However, their true power lies in their ability to address deeper societal issues: fostering social inclusion, improving health and well-being, and bridging cultural divides. 

Clearly, as 4IR technologies advance, they offer the potential to amplify these impacts. Imagine AI-driven tools that democratise talent scouting, blockchain systems that ensure transparent sports funding, or IoT-enabled devices that revolutionise athlete training while enhancing fan experiences. These possibilities signal a paradigm shift in how we view and leverage sports as a socio-economic asset.

Yet, alongside these possibilities lie critical questions: How can sports effectively integrate 4IR technologies without losing their human touch? Can advanced innovations serve not only elite athletes and wealthy organisations but also grassroots movements and underserved communities? And most importantly, how can sports become a model for inclusive and sustainable socio-economic development in an era dominated by rapid technological change?

AI and personalisation enable sporting events with better fan engagement

Wimbledon launched a new "Catch Me Up" feature for Wimbledon in 2024, developed in partnership with IBM - offering real-time updates and curated insights for fans. Leveraging IBM's watsonx platform and generative AI, this tool personalises player stories and match analysis based on user preferences, offering real-time updates and curated insights. The feature also integrated AI-driven summaries into the Wimbledon digital experience. This was one of the unconventional ways to democratise access to comprehensive coverage, including often-overlooked events like wheelchair tennis. 

Kevin Farrar, Head of Sports Partnerships for IBM UK, and Partnership Executive to Wimbledon/AELTC highlights the IBM Wimbledon partnership in a podcast interview:

"Wimbledon gives us an opportunity to really showcase IBM facilities in a number of areas. Data is, obviously, at the heart of it, but there's automation, security, AI, cloud computing, and on the consulting side, we work with Wimbledon to put together a team that uses the IBM Garage Methods, agile design thinking etc.

We were creating AI highlights reals of matches, listening to the noise of the crowd, looking at gestures of the players. We see a couple of stats that are exciting points in the match, in terms of Break Points or Championship Point, Match Point. We combine all those factors to give an excitement level to each of the rallies.”

What’s more, the Fourth Industrial Revolution has also leveraged the commercialisation of sports. Franchised sports organisations and corporate sponsors now dominate the industry, especially in countries with free-market economies. 

We saw that the Olympics has now integrated urban sports like skateboarding, breakdancing, and BMX into the mainstream. With this inclusion, the IOC aims to connect with younger audiences and maintain the Games' relevance. 

The World Games, governed by the International World Games Association (IWGA), have expanded their portfolio to recognise a wide variety of sports, particularly those not traditionally included in the Olympics. These games provide a global platform for emerging and niche sports to gain visibility and build audiences. Recognised disciplines include sports like: Floorball, Flying Disc (Ultimate Frisbee), Korfball, Powerlifting, Sumo, DanceSport (including disciplines like Rock 'n' Roll and Salsa), Bowling, Finswimming, Roller Sports (Artistic, Inline, and Hockey), Tug of War.

Joachim Gossow, CEO of the IWGA, has emphasised the importance of inclusivity in sports through The World Games.

In an interview with Dinis Guarda, he stated, "Our approach has always been centred on integration and respect. We firmly believe that we do not need separate Paralympic World Games if our goal is true inclusion and equality. Instead, we choose to integrate para-athletes into our events, ensuring they are respected and celebrated alongside other athletes.

This integration is not done hastily but with careful planning and respect for all parties involved. We began this process in Birmingham, where we included para-athletes in events like team sports (rugby) and road sports. The goal is to expand this integration from games to games, with mutual understanding and support from all stakeholders. It’s a shift from the traditional separation of para and non-para sports to a more unified and inclusive approach."

Athletes such as Brazil's Rayssa Leal and Britain's Sky Brown have attracted significant corporate sponsorships from brands like Louis Vuitton, Samsung, and Nike, leveraging their Olympic success and substantial social media followings. 

The integration of 4IR technologies presents a critical question: How can sports harness these advancements to develop inclusive and sustainable socio-economic models?

The impact of tech-enabled sports on the socio-economics and sustainability of society

The global sports economy has emerged as a powerhouse, with an estimated market size exceeding $500 billion annually. Mega-events like the Olympics and FIFA World Cup significantly drive economic growth by generating billions in revenue. For instance, the 2022 FIFA World Cup in Qatar contributed an estimated $20 billion to the country’s GDP, bolstered by tourism, infrastructure development, and sponsorships. 

The FIFA World Cup has embraced some technologies to enhance efficiency, safety, and fan engagement. Video Assistant Referee (VAR) improves decision accuracy, while wearable technology tracks athletes' performance and health. Contactless payments and biometric ticketing ensure seamless entry for attendees, supported by high-speed 5G connectivity that enables real-time communication and AR/VR experiences. 

Smart stadiums, equipped with IoT sensors, facial recognition, and energy-efficient systems, optimise crowd management and sustainability. Innovations like drones enhance surveillance and broadcast quality, while ultra HD 4K and 8K streaming with AI-driven analytics elevate viewer experiences globally. Additionally, eco-friendly technologies, including renewable energy systems and water recycling, address environmental concerns, leaving a sustainable legacy.

Similarly, the Tokyo 2020 Olympics, despite pandemic challenges, contributed $15 billion to Japan’s economy, creating jobs and promoting technological advancements in construction and logistics.

Beyond mega-events, sports stimulate employment and tourism globally. According to Deloitte, the sports sector supports approximately 1.5 million jobs in Europe alone, encompassing event management, coaching, and media roles. 

And then, there are urban development projects tied to sports, such as stadium construction and associated infrastructure. For instance, London’s Queen Elizabeth Olympic Park continues to generate economic and social benefits years after the 2012 Olympics.

A modern innovation shaping the future of these developments is digital twin technology, which creates virtual replicas of physical spaces, allowing real-time monitoring, simulation, and optimisation. In the context of digital stadiums, this technology has revolutionised event planning, fan engagement, and operational efficiency.

One notable example is the SoFi Stadium in Los Angeles, which uses a digital twin to simulate crowd flow, optimise energy use, and ensure seamless event management. This technology enhances the fan experience by integrating real-time data for personalised services, such as guiding attendees to concessions or parking areas with minimal wait times. Another example is the Singapore Sports Hub, where a digital twin optimises maintenance and sustainability, ensuring the facility remains efficient and eco-friendly.

Digital twin technology has also played a pivotal role in virtual concerts and hybrid sports events. For instance, during the pandemic, Fortnite's Travis Scott "Astronomical" concert combined immersive digital environments with real-time engagement, drawing over 12 million live viewers. Similarly, the NFL's "Digital Draft" in 2020 leveraged digital twins to ensure smooth operations in a remote setting, integrating real-time communication and seamless broadcasting.

Sports serve as a critical tool for community building and social integration. Digital communities like FanWide connect local fan groups of global sports teams, organising watch parties and creating a sense of belonging among supporters. Similarly, Socios.com enables fans to purchase blockchain-based fan tokens, granting them a voice in team decisions and enhancing their connection to their favourite sports clubs. 

The explosive growth of esports has created virtual spaces where millions of gamers and fans interact. Platforms like Twitch and Discord enable real-time communication, collaboration, and streaming, fostering vibrant online communities around shared gaming interests and competitive tournaments.

Initiatives like FIFA’s “Football for Hope” have empowered underprivileged youth in over 100 countries by providing access to education and leadership programs through football. Similarly, grassroots programs in cricket and athletics have helped address gender inequality in India, enabling young girls to pursue education and career opportunities through sports scholarships

Additionally, sports promote physical and mental well-being, with studies showing regular participation reduces risks of depression by 30% and physical inactivity-related healthcare costs by billions annually. Community-focused sports initiatives often address inequality, as seen in South Africa’s Kicking for Peace, which uses football to bridge racial and cultural divides.

The Power of Words was founded by luxury designer Deborah Sawaf in collaboration with THALÉ BLANC and a group of like-minded individuals in 2022. It is a purpose-driven initiative designed to address the pressing global issue of mental health. The foundation combines sport, fashion, and art to destigmatise mental health and promote emotional well-being. Its foundation rests on the belief that meaningful conversations, emotional expression, and community support are essential to overcoming the stigma associated with mental health challenges.

Platforms like Headspace for Athletes and Calm offer guided meditation, relaxation exercises, and stress management tools tailored to sportspersons. These apps help athletes maintain focus, manage pressure, and cultivate mental resilience. Devices like WHOOP and Oura Ring track not only physical performance but also sleep quality, heart rate variability, and recovery, offering insights into an athlete’s overall well-being. This data enables athletes and coaches to make informed decisions about training and recovery, reducing burnout. 

Platforms such as BetterHelp and Talkspace provide online counselling services, connecting athletes with licensed therapists who understand the unique pressures of competitive sports. 

Technology, in other words, is the answer to the challenges faced by traditional sporting models.

Traditional sports models face a major challenge in terms of resource disparities between developed and developing countries, ultimately hindering equal access to opportunities. For example, while the United States spends over $30 billion annually on sports infrastructure, many developing nations struggle to allocate resources for basic facilities. Unsustainable practices in mega-events also pose concerns; the 2014 Brazil World Cup left stadiums costing over $3 billion, many of which remain underused. 

And most importantly, the environmental impact of mega-events remains a concern. The 2022 FIFA World Cup generated approximately 3.6 million tons of CO2 emissions, raising questions about sustainability practices in sports. 

Developing nations are recognising the economic potential of esports. For instance, the introduction of mobile gaming has opened new revenue streams for both publishers and gamers in these regions, contributing to economic development and job creation. 

Significant investments are being made to bolster esports infrastructure. Saudi Arabia, for example, has launched the Esports World Cup with a prize pool of $60 million, aiming to position the country as a global hub for gaming by 2030.

The global esports market is experiencing significant expansion, with revenues projected to reach approximately $4.3 billion in 2024 and expected to grow at a compound annual growth rate (CAGR) of 6.59% between 2024 and 2029, culminating in an estimated $5.9 billion by 2029. 

The worldwide esports audience is on a steady rise, with viewership numbers anticipated to increase from 532 million in 2022 to over 640 million by 2025, indicating a growing global engagement with esports.

The Fourth Industrial Revolution (4IR): Overview and relevance to sports

Key technologies of 4IR in sports

The Fourth Industrial Revolution (4IR) is reshaping the sports industry, ushering in a transformative era where technology seamlessly integrates with athletic performance, fan experiences, and operational efficiencies. At the heart of this revolution are key technologies that are not only enhancing the industry but redefining the very essence of sports.

• Artificial Intelligence (AI): AI is revolutionising sports by enhancing performance analysis, fan engagement, and decision-making processes. For instance, AI's predictive capabilities can forecast player performance, market trends, and even the outcomes of entire seasons. 

Major League Baseball employs Statcast, an AI tool that monitors and assesses player movements, pitch velocity, launch angles, and exit speeds, offering comprehensive data to players, coaches, and fans.

• Internet of Things (IoT): The integration of IoT devices, such as wearables and smart equipment, provides a continuous stream of data, enabling real-time adjustments and personalised training programs. This connectivity facilitates the development of smart stadiums, enhancing the in-person experience for fans. 

A Deloitte survey found that 58% of sports fans attending live professional events desire access to the same statistics, analysis, and replays available when watching at home, highlighting the importance of IoT in meeting fan expectations.

• Blockchain: Blockchain technology is reshaping the sports industry by providing reliable athlete data management, secure mechanisms for data sharing, and reforming event management practices. Its impact is currently overshadowed by the hype surrounding the use of fan tokens and Non-Fungible Tokens (NFT) collectables, but its potential applications extend far beyond.
• Data Analytics: Advanced data analytics offer real-time insights into player performance and fan behaviour, enabling teams to make informed decisions and tailor strategies accordingly. The convergence of AI, IoT, Big Data, and Blockchain holds the promise of providing robust, safe, and efficient solutions to complex problems in the sports industry.
• Robotics and automation: Innovations in robotics and automation are enhancing training methodologies and sports facility management. For example, the Australian Open is exploring the use of AI for umpiring foot faults, aiming to enhance match speed and fan engagement. This technology could replace human eye detection, providing instant audio and visual signals for foot faults.

Opportunities for sports:

• Democratising access: Digital platforms are making sports more accessible, allowing fans worldwide to engage with their favourite teams and athletes. The Marshall Islands, for instance, broadcasted their first international futsal match using AI-powered cameras, enabling global viewership without the need for traditional production crews.
• Sustainable infrastructure: Smart technologies are contributing to the development of sustainable sports infrastructures, optimising resource utilisation and reducing environmental impact. The integration of AI and IoT can lead to more efficient stadium operations, enhancing both sustainability and fan experience.
• Precision training and injury prevention: AI and IoT devices enable precision training and injury prevention by analysing player movements and health metrics. For example, AI-driven 3D Athlete Tracking technology quantifies athletic performance, offering valuable data for both athletes and coaches to optimise training and reduce injury risks.

The synergy between sports and social economic models in the 4IR era

The Fourth Industrial Revolution (4IR) is fostering a dynamic synergy between sports and socio-economic models, driving inclusivity, sustainability, and enhanced engagement.

Inclusive Models: Leveraging technologies like AI and blockchain is pivotal in addressing inequalities within sports. Tokenised funding models, for instance, enable underfunded athletes to secure financial support directly from fans and investors. Platforms such as AthleteFi allow athletes to tokenise their earnings, providing fans with the opportunity to invest in their careers, thereby democratising financial backing. Digital platforms are also instrumental in bridging the gender gap by promoting women's sports. By offering increased visibility and engagement opportunities, these platforms empower female athletes and attract sponsorships, fostering a more inclusive sports environment.

Sustainability in sports: The advent of smart stadiums, powered by IoT, is revolutionising energy efficiency in sports venues. For example, the M. Chinnaswamy Stadium in Bengaluru, India, has implemented solar energy solutions, generating substantial electricity and significantly reducing carbon emissions. Blockchain technology enhances transparency in sports funding and governance. Providing an immutable ledger for transactions. it reduces corruption and ensures that funds are allocated appropriately, promoting integrity within sports organisations.

Digital fan engagement: Virtual Reality (VR) and Augmented Reality (AR) are transforming fan experiences by creating immersive environments. Smart stadiums equipped with high-speed connectivity offer real-time data streaming and interactive applications, allowing fans to engage with events in unprecedented ways. The monetisation of sports through Non-Fungible Tokens (NFTs) enables fans to own unique digital collectables, deepening their connection to teams and athletes. Platforms like NBA Top Shot have popularised this trend, offering officially licensed video highlights as NFTs.

Health and well-being: Smart wearables are integral in monitoring the health of athletes and the broader community. These devices track vital statistics, providing data that informs training regimens and health interventions, thereby enhancing performance and well-being. Data-driven solutions are also addressing mental health challenges in sports. AI-powered applications analyse behavioural patterns to identify signs of mental distress, enabling timely support for athletes. This proactive approach fosters a healthier sporting environment.

Challenges and ethical considerations in the 4IR era

The Fourth Industrial Revolution (4IR) is transforming the sports industry through advanced technologies, but it also introduces significant challenges and ethical considerations that must be addressed to ensure responsible and equitable progress.

Data privacy and security:

The extensive collection of athlete and fan data, including biometric information, raises substantial privacy concerns. For instance, the "Project Red Card" initiative involves over 850 football players in the UK taking legal action against data companies for allegedly misusing their personal data without consent, highlighting the complexities of data ownership and consent in sports.

Additionally, the use of AI for predictive analytics in sports can lead to ethical dilemmas, particularly regarding algorithmic bias. If AI systems are trained on biased data, they may perpetuate existing inequalities, affecting decisions related to player selection and game strategies. Ensuring transparency and fairness in AI algorithms is crucial to mitigate these risks.

Technology access divide:

A significant digital divide exists between developed and developing nations, affecting the adoption of 4IR technologies in sports. This disparity can exacerbate inequalities, limiting opportunities for athletes and fans in less technologically advanced regions. For example, while smart stadiums and wearable tech are commonplace in affluent countries, their absence in developing nations hinders the global growth of sports. Addressing this divide is essential to ensure equitable access to technological advancements in sports. 

Sustainability risks:

The implementation of new technologies in sports infrastructure can have environmental implications. The construction and operation of tech-heavy facilities may increase carbon footprints if not managed sustainably. For instance, the energy consumption of advanced data centres and digital broadcasting equipment contributes to environmental concerns. Mitigating these risks requires adopting energy-efficient practices and renewable energy sources to balance technological advancement with environmental responsibility.

Case studies and success stories in the 4IR Era

The integration of Fourth Industrial Revolution (4IR) technologies into the sports industry has led to remarkable transformations, creating new benchmarks for efficiency, engagement, and inclusivity. Below are detailed real-world applications that showcase the power of innovation in sports.

Smart Stadiums – Levi’s Stadium, San Francisco

Levi’s Stadium, home to the San Francisco 49ers, is a leading example of how IoT (Internet of Things) can enhance energy efficiency and fan experiences. The stadium incorporates over 1,000 Wi-Fi access points, allowing fans to stream live game statistics, navigate the venue through a mobile app, and even order food to their seats.

On the sustainability front, Levi’s Stadium features a solar terrace and rooftop panels, producing enough energy to offset its yearly consumption. Advanced IoT systems monitor energy use in real time, enabling the venue to optimise operations and reduce waste. According to a report by SportsPro, Levi’s Stadium reduced its annual energy consumption by 40% through these innovations, making it a model for future smart stadiums.

Blockchain in Sports Governance – Socios.com

Socios.com has redefined fan engagement and governance in sports using blockchain technology. By offering fan tokens through its platform, Socios enables supporters to vote on critical decisions such as jersey designs and matchday songs for their favourite teams.

For example, FC Barcelona and Paris Saint-Germain have successfully used Socios tokens to bridge the gap between teams and fans, generating millions in revenue while enhancing fan loyalty. Blockchain ensures transparency and security in these transactions, reducing instances of fraud. The concept has gained traction globally, with over 60 sports organisations partnering with Socios by 2024.

AI in Sports Training – IBM Watson in Tennis Analytics

IBM Watson's AI-driven analytics platform is revolutionising tennis. At major events like Wimbledon, Watson provides detailed match insights, including player weaknesses, historical performance trends, and real-time data. Coaches and players use this data to refine strategies during matches.

One standout example is Serena Williams’ team, which leveraged Watson’s analytics to prepare for matches. The AI system highlighted opponents' tendencies under pressure, giving Williams a strategic edge. Beyond players, fans benefit from enriched experiences through AI-generated match narratives and predictive analysis of upcoming games. Watson’s role exemplifies how AI can elevate both performance and audience engagement in sports.

Global Grassroots Initiatives – Empowering Communities Through 4IR Technologies

4IR technologies are not limited to professional leagues; they are also empowering underserved communities worldwide. Organisations like Right to Play and Dream Africa Schools integrate IoT devices and digital platforms to bring sports education and training to underrepresented groups.

For example, Dream Africa Schools launched a program using VR headsets to train young athletes in remote regions. These headsets simulate competitive environments, enabling students to develop skills they might otherwise lack access to. Similarly, AI tools assess individual strengths and weaknesses, tailoring training programs to optimise potential.

Such initiatives democratise access to sports, fostering inclusivity while nurturing future talent in areas historically excluded from professional opportunities.

Future outlook: Pioneering sports and socio-economic transformation in the 4IR era

The future of sports will be shaped by AI systems designed with empathy and inclusivity at their core. These systems can enhance accessibility for differently-abled athletes and fans. For instance, AI-driven tools like descriptive audio systems and real-time captioning can make live events more accessible, while personalised training programs powered by AI can empower athletes from all backgrounds to excel.

Human-centric AI also holds the promise of democratising access to sports analytics and coaching. Young athletes in remote regions could gain insights typically available only to elite professionals, fostering talent development on a global scale.

Blockchain-based smart contracts are poised to revolutionise sports financing by enabling transparent, automated transactions. These contracts can simplify revenue-sharing among stakeholders, manage sponsorship agreements, and ensure equitable distribution of funds.

For example, decentralised platforms could allow fans to directly contribute to athlete development or community sports projects through tokenised funding models. Such innovations democratise financial support, ensuring that even grassroots initiatives receive adequate resources.

Sports have the potential to significantly contribute to the United Nations’ Sustainable Development Goals (SDGs). From promoting gender equality in sports to developing eco-friendly infrastructure, the industry can align its practices with sustainability objectives. Smart stadiums powered by renewable energy, coupled with waste management innovations, can reduce the carbon footprint of major events.

Moreover, sports can play a critical role in raising awareness about sustainability. Global events like the Olympics could emphasise eco-conscious practices, inspiring millions to adopt sustainable behaviours.

What steps can the sports industry take to prioritise environmental sustainability without compromising the scale or grandeur of major events? And how can we ensure that the integration of AI in sports does not create a digital divide, but rather bridges gaps in accessibility and opportunity?