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PwC rolled out a playbook for Saudi Arabia to revamp its sports sector, proposing the digitalization of stadiums, the business consulting firm said in a recent report.
The report recommends tapping integrated advanced technologies like AI, IoT and drones to set up these smart stadiums, pointing to the economic benefit of Qatar’s 2022 FIFA World Cup, which contributed to an 8% rise in Doha’s real GDP in 4Q 2022.
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Digital stadiums use AI, IoT, augmented reality features, and drones to boost fan engagement, and facilitate crowd management on the ground. They can also enable personalized ad placement which channels personal data to unlock new revenue streams, boost sponsor returns and stimulate spectator spending.
Big expectations: The global market for digital stadiums market is projected to grow at an annual rate of 20.6%, reaching USD 191.7 bn by 2037, the report said. The growth will be supported by growing demand for immersive sports experiences and the commercial appeal of operational efficiency, according to the report.
Fans worldwide are welcoming the digital era: The timing also coincides with a global surge in fan expectations for digitally enhanced sports experiences, PwC suggests, citing data from an Intel survey. 77% of participants said they would spend more on tickets to a digital stadium, while 88% believed technology plays a positive role in their experience.
Key recommendations include standardizing protocols to define digital stadiums, setting clear standards for integration, and personalizing fan experiences through interactive apps and multilingual support. Investing in real-time monitoring, cloud-based systems, and reliable backup solutions will boost efficiency, enhance security, and future-proof operations, the report said.
IN CONTEXT- The pivot towards digital stadiums is especially relevant as the Kingdom prepares to host marquee events like the 2027 AFC Asian Cup, the 2029 Asian Winter Games, and the 2034 FIFA World Cup, among others in the pipeline, in a bid to position itself as an international sports hub and lock in FDI.
BUT- Going digital has its downsides: Data privacy concerns demand robust cybersecurity measures, while digital stadiums might alienate fans who prefer traditional, in-person engagement experiences. Balancing innovation with inclusivity will be key to ensuring widespread adoption, PwC recommended.
