London, United Kingdom (PRWEB) April 09, 2013
The Sports Facilities industry contains two main types of sports facilities: large, professional sports venues and stadiums where many people are able to view professional sporting events; and smaller, local sports venues that may or may not have spectator seating, and where members of the public can participate in sporting and other activities. A wide range of professional and amateur sport groups use these facilities, usually leasing them from the owners or operators. A range of entertainment, cultural and other events can also use the industry's establishments.
According to IBISWorld industry analyst Steven Connell, “the industry benefited greatly from increased demand for sports facilities, stadiums and venues in the lead-up to the 2012 Olympic Games and Paralympic Games”. Many major sporting events during 2009-10 and 2011-12 required the use of sports stadiums and contributed to significant industry revenue growth in these years. This is expected to continue during 2012-13, with attendance at the events and an expected jump in participation following the Games set to underpin revenue growth. Outside of the Olympics, however, the weak economic climate is likely to lead consumers to moderate their spending on discretionary purchases such as tickets to sporting and music events staged in industry establishments. Weak business confidence and downsizing in the financial sector should constrain demand for corporate box leasing.
In the five years through 2012-13, industry revenue is estimated to increase at a compound annual rate of 6.3% to £3.74 billion, with growth of 3.3% expected in 2012-13. This follows an estimated increase of 7.3% in 2010-11 and a 23.3% jump in 2009-10 due to the surge in pre-Olympic and pre-Paralympic sports preparation and demand.
The industry is forecast to record weaker growth over the next five years. Connell adds, “a post-Olympic slowdown and uncertain economic outlook is expected to result in industry revenue declining modestly from 2013-14 through 2017-18”.
The Sports Facilities industry has a low market share concentration level, as there is a very high number of sports stadiums and facilities across the United Kingdom, with even the largest ones having limited market share. The largest organisation in the industry, the Football Association Limited (which owns and operates Wembley Stadium), is estimated to only account for 2.7% of industry revenue in 2012-13.
For more information on the Sports Facilities industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms within this industry operate facilities for indoor or outdoor sports events. These facilities and stadiums may be open, closed or covered, and may or may not have spectator seating. These firms carry out the organisation and operation of outdoor and indoor sports events for professionals or amateurs, using their own facilities. This industry also includes managing and providing staff to operate these facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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