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Sports Economy Set to Reach $8.8 Trillion by 2050, But Physical Inactivity and Climate Threats Risk Billions Without Urgent Action

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LONDON--(BUSINESS WIRE)-- The sports economy is projected to reach $8.8 trillion in annual revenue by 2050, yet rising physical inactivity and escalating climate and nature risks threaten up to $517 billion of this revenue by 2030. Without coordinated multistakeholder action, potential losses could increase to as much as $1.6 trillion by 2050. This is according to Oliver Wyman, a global leader in management consulting and a business of Marsh (NYSE: MRSH), which today released Sports for People and Planet, a report produced in collaboration with the World Economic Forum.

Tony Simpson, Partner and Sports Practice Leader at Oliver Wyman, said: “As well as exploring key growth drivers that are shaping the global sports economy, this report identifies three distinct pathways that reflect sport’s unique impact, including championing resource stewardship, placing sport at the heart of cities and catalysing purpose-driven capital flows. This analysis has the potential to help organisations with investment and risk, as well as with insurance considerations that support this industry.”

Sebastian Buckup, Managing Director, World Economic Forum, said: “Sport blends economic power and cultural influence in ways few other sectors can match. This paper illustrates how public, private and civil society leaders can harness that potential to shape a new model of prosperity that delivers not only financial returns, but healthier societies and thriving natural ecosystems — outcomes that are imperative for sustained economic growth and societal well-being.”

This new report reveals sport generates $2.3 trillion annually in total revenues. With projected compound growth of 10% over the next five years, the sector is expected to reach $3.7 trillion by 2030, with long-term forecasts indicating expansion to $8.8 trillion by 2050. However, sport’s long-term growth is at risk due to converging health and environmental challenges.

Rising levels of physical inactivity, especially among youth, risk undermining grassroots participation and eroding the future fan and consumer base that sustains revenues across apparel, elite events, tourism and fitness.

Simultaneously, escalating environmental risks such as heat stress, extreme weather and pollution are disrupting competitions, diminishing spectator experiences, limiting community well-being and impacting the supply chains and operations that underpin the broader sports economy.

The sector also contributes to these pressures through the resource-intensive nature of events, sporting goods, infrastructure and travel, resulting in significant carbon emissions, water use and waste generation.

To combat potential loss, this report explores pathways that actively shape the conditions needed to create more active societies and thriving natural ecosystems, as well as four key growth drivers shaping the future of the sports economy: the acceleration of sports tourism, the emergence of sport as an asset class, the mainstreaming of women’s sports, and the rebalancing of sport’s growth with emerging economies.

Sports for People and Planet Insight Report is conducted by the World Economic Forum’s Centre for Nature and Climate. Oliver Wyman is a strategic partner of the World Economic Forum.

About the study

This report was complied with input from over 130 independent sources and collaboration with world governments, professional leagues, media and entertainment groups and the investment community.

About Oliver Wyman

Oliver Wyman is a business of Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information, visit oliverwyman.com, or follow us on LinkedIn and X.

About World Economic Forum

The World Economic Forum provides a global, impartial, not-for-profit platform and insights to support meaningful connections between political, business, academic, civil society and other leaders. (www.weforum.org).

Media contacts:

Oliver Wyman
Matthew Harrison
+44 (0)7990 802 830
matthew.harrison@oliverwyman.com

World Economic Forum
public.affairs@weforum.org

Source: Oliver Wyman