The Future of Australian Sport
The second report: Megatrends shaping the sport sector over coming decades
The Australian sport sector will look very different in 2032 when Australia once again hosts the Olympic and Paralympic Games and becomes the focus of global attention.
Australian sports, and the ways in which we engage with sport and physical exercise, are being transformed by new technologies, changing environmental conditions, shifting value systems, new habits and lifestyles and the increasing diversity of the Australian population.
This report identifies six megatrends that will shape the Australian sports sector over the coming decade and beyond and provides a decadal update on the first ground-breaking report, The Future of Australian Sport: Megatrends shaping the sports sector over coming decades, released by the Australian Sports Commission (ASC) and Commonwealth Scientific and Industrial Research Organisation (CSIRO) in 2013.
Megatrends describe connected groupings of smaller social, political, economic, technological, legal and environmental trends. They create an overarching narrative for the main drivers of longitudinal change that can steer policy formation, strategic planning and investment decisions for the long and medium-term future.
The second report: Megatrends shaping the sport sector over coming decades
Six new megatrends that will reshape Australian sports out to 2032 and beyond.
new pathways to sport
Escalate the exercise
New pathways to sport
Organised sports across Australia bring communities together and provide a platform where volunteers, players, sponsors, local businesses and organisers can form relationships on and beyond the sporting fields.
This is particularly apparent in regional and rural communities where sporting competitions build deep social connections and create a meeting place for people who live across larger distances.
Participation in organised sports across Australia has remained relatively steady over the past decade, but there has been a rise in participation in non-organised physical activities such as walking, running, cycling and gym-based fitness. This trend was further boosted by the COVID-19 pandemic, social distancing, periods of home isolation, and the subsequent increase in adoption of home-based gym equipment, fitness apps, and wearable technologies. Much of the increase in fitness-based activity has been through non-formal or semi-formalised participation in fitness centres, home gyms, exercise groups, online communities, and individuals accessing outdoor recreational infrastructure and green space within their communities.
The Increase in convenient and ad-hoc exercise by a proportion of the population hasn’t generally translated to involvement in more formalised sports competitions and leagues. The rise of fitness-based activities presents new opportunities for sports organisers who can bring the game to the people, increase inclusion, promote the social benefits of playing together and utilise new technologies to increase convenience.
Barriers to participation in formalised sports remain significant for some groups, including older populations, people from regional and remote areas, First Nations peoples, low socio-economic individuals, LGBTIQ+ people, people from culturally diverse backgrounds, and people with disability. These groups may benefit from specialised or modified sporting services and competitions.
Overall, the pathways into organised sport are changing and diversifying.
Escalate the exercise
New pathways to sport
- Growth in commitment free physical activity
Exercise you can do alone, when, where and how you want to do it. - Apps and exergaming
Technology-enabled global online exercise communities changing local competitions. - Time-poor, sedentary and aging adult population
More people motivated by the physical and mental health benefits, and convenience. - Focusing on the fun
The move away (for some) from intense competition to social, inclusive and joy-based activity.
science and technology changing the game
New horizons
Science and technology changing the game
Australia has long been seen as a global leader in sport. 74 Despite having a population of just over 26 million, Australia has been in the top ten on the medal tally of Summer Olympic and Paralympic Games since Sydney 2000, and in many games before then.
Our global reputation in this sector can be linked to several factors including support for sport at all levels from Australian governments, and a strong high-performance system led by the Australian Institute of Sport [AIS].
Over the next decade the world will look to Australia as we approach the Brisbane 2032 Olympic and Paralympic Games. Much of the success of Australian high-performance sports teams to date can be attributed to advances in sports science and medicine, coaching, organisation, and ongoing investment in the potential of Australia’s elite athletes.
New technologies and advances in areas of technical expertise that support the enhancement of performance (including but not limited to human physiology, nutrition, psychology, genetics, engineering and materials science) are now changing the game in sports. A better understanding of the individual and biological diversity of athletes is leading to an individualised approach to performance support across a range of technical direction disciplines, from coaching to sports medicine and training. Training programs tailored to the individual, resulting from the work of multi-disciplinary teams, can optimise sports performance, assist with injury prevention, enhance physical and mental recovery, and maximise the well-being and long-term psychological benefits of sport. The adoption of new and emerging technologies will support this individualised approach but comes with issues to be negotiated around ethical implementation and privacy protections.
The global sport technology and innovation market continues to see significant growth. Australia will host a significant number of international sporting events over the next decade, and this will provide our science, technology, health, education and manufacturing sectors with an opportunity to invest in sport innovation and showcase and export their know-how and products to the world.
New horizons
Science and technology changing the game
- Individualised athlete-centred performance support
Personalised training supported with new technologies, sports science and well-being programs. - Digital technologies and new ways of thinking
Advances in computer science and AI providing new insights on sport and human performance. - Emerging ethical issues in high-performance sports science
Data privacy and ownership rights, transhumanism, genetic testing and cutting-edge performance innovation.
the rise of entertainment sports
The next arena
The rise of entertainment sports
Australians consume sport across a range of markets and platforms. Many Australians love to be entertained by sport, whether this is attending a live event or listening to or watching sport through the various broadcast and online options available.
Over-the-top (OTT) video-streaming platforms, with the ability to deliver sports content to many Internet-enabled devices, are increasingly challenging traditional sports broadcasting business models on satellite, cable, free-to-air (FTA) television and radio, creating new audiences and connecting viewers globally.
Some sporting organisations – particularly the major codes in Australia – generate significant revenue streams through broadcast rights deals, major events, merchandising, sponsorship activities, endorsements and branding.
Digital sport and e-sports are becoming increasingly popular, offering access to new activities in virtual environments. Some of these digital sport variants more recently supplemented or provided redundancy for cancelled real-world sporting events during the COVID-19 pandemic. At the same time, urban and adventure sports are engaging the next generation of sports fans as they become more visible and available to mainstream audiences.
Over the coming decade, we will see more sporting organisations and products compete for a share of national and global audiences. As a result, both established sporting codes and sports new to these markets will consider how to engage contemporary consumers and adjust their view of spectators to take advantage of the increasingly dynamic and diverse global media landscape.
The next arena
The rise of entertainment sports
- Globally connected audiences, streaming platforms and more content
The fragmentation and global reach of sports audiences. - Entering virtual worlds
Augmented reality (AR), virtual reality (VR), and e-sports. - Adventure sports
Urban and outdoors – the new fans of emerging sports codes.
bringing Australia together across generational and societal divides
Mind the gap
Bringing Australia together across generational and societal divides.
Sports organisations can champion positive change across society. They do this by emphasising sporting values of fair play, egalitarianism, inclusivity and teamwork.
By showcasing these values and creating a meritocracy based on commitment, fitness and skills development, sports offer a source of inspiration, create shared experiences, and build pride.
Sport can bridge the cultural and demographic gaps existing and emerging across Australian society. Australia’s population overall is aging increasingly diverse. In 2022, nearly a third of Australians are born overseas, 3.2% are members of First Nations groups, 17% live with
disability, and just over half of the population are women. Young Australians are growing up with new technologies and global connections, creating distinctly different behaviours and values.
Over the coming decades, sports organisations and individual athletes will play a unique role in broader societal change and help bridge the gaps between demographic groups. Sport will provide a sense of common purpose, identity and belonging to Australians from many different
backgrounds and abilities.
Mind the gap
Bringing Australia together across generational and societal divides
- Cultural gap
An increasingly culturally diverse Australia. - Gender gap
More women and gender diversity in more sports. - Generation gap
The changing behaviours and values of younger generations. - Abilities gap
More sporting pathways for people of all abilities and ages.
safe, sustainable and inclusive for all
Our best sporting side
Safe, sustainable and inclusive for all
As Australia’s demographic profile becomes more diverse and social values shift, organised sports in Australia will also transform and reflect these changes.
Persistent societal challenges such as racism, violence, abuse and other poor behaviours in sport have elevated the importance of sports integrity, safety and ethics in the sports industry at all levels. Stronger accountability, reporting structures and advocacy for vulnerable Australians will place further pressures on sports to provide a safe and welcoming place for all.
Community-driven sports clubs will increasingly seek to tap into the benefits of engaging a broader cross-section of Australian society. Many will place more emphasis on providing positive participant experiences and promoting inclusive behaviours on- and off-field. Growth in competing markets and competition for new participants will also provide further impetus for sporting organisations and clubs to implement positive change.
In the coming decades sports organisations will be faced with even stronger social licence obligations and will seek well-informed practices to encourage diversity, inclusivity and fair-play and offer athletes more choice, advocacy and individual expression.
Our best sporting side
Safe, sustainable and inclusive for all
- Inclusive behaviours and practices
Mounting pressure to ensure sports provide a safe and welcoming place for all. - Safety and integrity in sport
Stronger accountability, reporting structures and advocacy for vulnerable Australians. - Sustainability
Increased pressure for sports organisations to be environmentally sustainable. - Athlete expression
Greater licence for athletes to champion causes and to express their personal views.
adapting in an uncertain world
The perfect pivot
Adapting in an uncertain world
The world is entering historically uncertain times. Climate change is increasing seasonal temperatures and the frequency of extreme weather events. Heightened geopolitical tensions have given rise to more wars along with the threat of further military conflicts globally, trade sanctions, and threats and acts of terrorism.
Pandemics, like the COVID-19 pandemic, have increased in likelihood – with a 47% to 57% chance of a second pandemic of the same magnitude occurring in the next 25 years.
All these factors have disrupted scheduled sporting activities over recent years and this disruption is likely to continue and increase in frequency over the coming decades. This uncertainty will affect all sports, including event planning, infrastructure design and the types of sports that can be played in certain seasons. It will increase the need for some sports and their associated business models to make strategic ‘pivots’ or rapidly deploy alternative approaches and resources, move venues and competitions at short notice, or respond to other unexpected challenges when required.
This megatrend is far broader than just sport but has relevance to a sector with multiple points of exposure to geopolitical, extreme climate and pandemic-related risks. Australian sporting organisations will need to be flexible and ingenious over the coming decades.
The perfect pivot
Adapting in an uncertain world
- Increasing geopolitical tensions
Sports involvement in the exercise of soft power. - Climate change
Adjusting for extreme weather and increasing temperatures. - More disease outbreaks
Infection control – the new normal.
Previous report
The Future of Australian Sport
The first report: Megatrends shaping the sports sector over coming decades [2013]