The smart stadium of the future
Author: Rose de Fremery
Date published: October 25, 2024
Live entertainment venues must compete for attention, time and revenue not only from other in-person events, but also digital and virtual at-home entertainment as well, according to Deloitte’s 2023 media and entertainment outlook.1 Stadium operators are focused on fiscal challenges as they seek to lower operating costs and increase revenue, according to Verizon and Stadium Tech Report's Stadium Connectivity White Paper.2
The world's leading venues are responding to these challenges by embracing smart stadium technology. The global market for smart stadiums is expected to grow by almost 22% per year from 2022 and be worth $23.3 billion by 2028.
By creating a connected stadium, whether through a new build or retrofitting an existing facility, venue operators can establish the foundation for long-term success even as fans' expectations for a high-quality customer experience continue to evolve. Smart stadiums that are powered by private 5G networks can help operators achieve Enterprise Intelligence—the ability to adapt in near real-time and respond with agility—with access to the right systems and solutions.
Financial benefits of a smart stadium
The Stadium Connectivity White Paper highlights the economic pressures facing sports stadiums, with respondents noting that lowering operating costs (56%), increasing revenue (55%) and budgetary constraints (53%) all featured among the biggest challenges stadiums would face in the 12 months following the issuance of the report.3 Smart stadium technology can help with revenue generation by offering faster, easier and more personalized service for guests.
Cashierless checkout
Cashierless or autonomous checkout allows a shopper to enter a store via a turnstile and check in using their credit card or the venue's branded loyalty app. As the patron picks items from the shelves, cameras and computer vision system equipped with machine learning log the order in a virtual shopping cart. Once the shopper has made their selections, they can walk out of the store and back to their seat. As they depart, the cashierless checkout system sends them a digital copy of their receipt.
Cashierless concessions technology is the top initiative for stadiums in 2024, according to the Stadium Connectivity Report, on the roadmap for 65% of firms surveyed compared to 45% a year ago.4 One trial of Verizon’s 5G Edge Cashierless Checkout Technology saw increases in revenue, basket size, and transactions.5
Cashierless checkout is an example of how automation connectivity, machine learning, and computer vision technology solutions can also help address operational challenges, such as staffing shortages, while also helping to lower operating costs and drive revenue. Staffing was cited as the most pressing concern by 45% of venue operators surveyed in the Stadium Connectivity report, the most of any challenge.6 The report notes that, importantly, this new technology has received rapid acceptance and satisfaction from fans as average transaction times are shortened to less than a minute.7
Personalización
Stadium operators can boost revenue by offering personalized digital experiences at the stadium through branded apps. Consumers are increasingly expecting personalization. They are also likely to spend more after a targeted experience, according to HubSpot. Smart stadium sensors can help venues collect the data needed to provide a bespoke service, such as offers and alerts linked to their preferred food or beverage, or even to merchandise from their favorite player. Indeed, venues could also offer personalized packages and experiences that could enhance the entertainment experience.
Lowering operating costs
Smart technology can help to lower CAPEX and OPEX. According to Maximize Market Research smart stadiums have a lower lifespan operating cost than traditional stadiums. Data obtained from smart stadium technology can be used to identify ways for operations to be more efficient and reduce costs. For example, performance data can be used to undertake predictive maintenance to help prevent downtime due to maintenance from occurring during events.
Automated smart technology can also take advantage of Internet of Things (IoT) sensors to conserve energy usage and help reduce operating costs of lighting and heating, ventilation and air conditioning systems (HVAC) systems. Advanced building automation was among the reasons why a stadium in Atlanta was able to earn a Platinum Leadership in Energy and Environmental Design (LEED) certification. Just under a third (29%) of venues surveyed in the Stadium Connectivity report have smart facility management solutions on their list of initiatives for the coming year.8
Digital twin technology can also be used to build virtual replicas of stadiums to identify opportunities for cost savings and improved efficiencies. A Deloitte study estimates digital twinning can result in cost savings of 70-80% for users.
Enhancing the stadium experience for fans
Improving the fan experience can be a critical strategic component for venues to stay competitive. According to Choicely's The State of Sports Fan Engagement 2023 survey by iSport Connect and Choicely, 71% of sports professionals see fan engagement as important to their organization. Measures to improve the stadium experience can help convince supporters to leave the comfort of their home and enjoy the action in person, turning passive spectators into loyal and engaged fans and increasing the chances they will return in the future.
Conectividad
Sports enthusiasts love sharing their game-day experience with friends, family and other diehard fans. It's now second nature for people to discuss the intricacies of a particular development as it unfolds on social media or messaging apps.
In order to stay connected with friends and family, and use other smart stadium technology, fans need reliable wireless access. During the 2023 Miami Formula Grand Prix, Verizon customers used 42.9 TB of data over the three-day event, up 26% from the previous year, and the equivalent of streaming a feature-length movie almost 12,000 times. Almost two-thirds (59%) of venue operators surveyed plan to improve in-venue connectivity for fans in the next year, while a majority (54%) plan to improve in-venue connectivity for operations.9
Second screen experiences
Smart stadium technology can help enhance fan experiences, regardless of the ticket an attendee purchased or the particular section in which they happen to be watching an event. All fans have to do is open up the venue's mobile app on their capable device, and choose the desired camera angle they want to see. Fans are already accustomed to second screen experiences at home, selecting from an array of camera angles to uncover minute details about pivotal plays. One-third (33%) of fans want multiple camera angles for sports highlights.
Now, stadium operators like Oak View Group are delivering innovations such as watch parties and other second-screen experiences to the arenas they run. Other venues are following suit, with 33% of venue operators surveyed planning to implement personalized second screen experiences in 2024.10
Immersive reality
Augmented reality (AR) is another popular consumer technology that fans would like to use in smart stadium environments. According to the 2022 Global Augmentality Shift Study commissioned by Snap and performed by Ipsos, 74% of consumers are interested in AR for entertainment such as concerts and sports events.11 For their part, 75% of brands who use AR say it improves the customer experience and results in increased customer loyalty. In the Choicely Fan Engagement survey, immersive reality (augmented reality/virtual reality) was predicted to be the most revolutionary technology for fan engagement in the next three to five years. Stadium operators looking to boost customer satisfaction and drive more revenue are discovering how immersive reality can help them accomplish these goals.
5G-enabled cameras positioned within the stadium can simultaneously capture footage from different viewpoints. From there, powerful edge computing services can instantly process all of the data and stream a 360-degree view of the game to fans' devices. For example, at the Indianapolis 500, racing fans with 5G-capable devices could be transported onto the track and into the pit with an AR portal.
As fans move throughout the stadium or enjoy the event from their seats, they can also use AR overlays within the stadium's branded mobile app to access near-instant player and team statistics, enriching their understanding of the game even further in near real-time. According to a Nielsen survey, a majority (55%) of Gen Z respondents expect to see and interact with live statistics during play.
Crowd analytics
Long lines and crowding can have a strong negative impact on fan experience. More than one-third of respondents to the Stadium Connectivity survey said they encountered significant issues with delays or backups due to ticketing or security screening.12
Smart stadium capabilities such as 5G Edge Crowd Analytics can streamline foot traffic, transforming how fans experience the venue and leaving them with a much better impression of the facility. Crowd analytics can make the stadium environment more pleasant in three key ways (note for design - suggest these three as 'pop-up' text that opens when a reader clicks on them):
- Improved traffic flow: Crowd analytics uses sensors that track and analyze key traffic-flow pattern data as fans move throughout the facility. Venue operators can track crowd traffic data using heat mapping and LiDAR sensors to help visitors make smarter decisions as they navigate through venues. These smart stadium technology enhancements also support safety and security efforts which, as the Stadium Connectivity White Paper mentioned, stadium operators are seeking to strengthen.
- Better wayfinding: Digital signage can make a big difference in helping fans traverse large facilities such as stadiums and arenas. Crowd analytics can be leveraged to serve up advanced wayfinding information on these displays, allowing visitors to swiftly and independently find their way around these venues. They can also be used to inform guests about restroom and concession wait times.
- Reduced wait times: Waiting in a long line at concession stands or bathroom entrances can dampen satisfaction levels, particularly during live sports events, when fans don't want to miss a moment of the action on the field. Crowd analytics can help here, as well, by enabling stadium operators to minimize wait times at normally busy locations.
Seguridad
Security is a growing concern for stadium operators—fan behavior is considered "much worse" (25%) or "worse" (40%) than 10 years ago according to a survey of major sporting venue directors from the National Center for Spectator Sports Safety and Security (NCS4).13
Almost half (46%) of stadium operator respondents in the Stadium Connectivity Report have incorporated this priority into their innovation roadmap, planning to implement walk-through security screening in the coming year.14 According to that same Report, security, surveillance and crowd management applications were among the leading use cases cited by venue operators for implementing private 5G networks.15
Opt-in facial authentication technology, when combined with the low lag times and cloud-based processing power of 5G Edge, could quickly identify season ticket holders, VIPs and employees. This way, fans and stadium personnel could pass through security checkpoints faster instead of waiting to be screened, and everyone would benefit from fewer bottlenecks while trying to make their way into the facility.
The network infrastructure for smart stadium technology
A powerful, reliable and secure network infrastructure serves as a crucial enabler for the technology behind a smart stadium, making it possible to create the full complement of the future-ready experiences fans expect. Ultra-fast and consistent wireless network connectivity gives today's hyper-connected stadium visitors access to the suite of on-site digital services they want, such as cashierless checkout and immersive reality, while also providing stadium operators the near real-time data they need to help make intelligence-driven decisions.
Private 5G
Stadium operators are increasingly looking to private 5G networks to provide the infrastructure to support their smart stadium. According to the Stadium Connectivity report, popular private 5G use cases include:16
- Back-of-house corporate operations (56%)
- Security and crowd management communications (48%)
- On-field operations (45%)
Other uses for a private 5G wireless network include guest connectivity, digital signage, data analytics applications, IPTV and content contribution and distribution.
Private MEC
Private mobile edge computing (MEC) can also play an important role in smart stadium technology as it brings critical computing resources such as processing power and storage closer to the edge of the network. This can provide venue operators with a number of benefits, including ultra low latency, improved security and an increased ability to scale quickly and efficiently.
Conclusion
Smart stadium technology is here, as venue operators pursue a variety of innovations to delight fans, streamline operations, help improve security and earn additional revenue. Fans, for their part, notice the effort that has been invested. They express excitement about the new experiences, such as cashierless checkout and immersive reality, that make their trips to the stadium more convenient, safe and memorable. Each smart stadium advancement, particularly when deployed in concert with others, affords stadium operators valuable opportunities to make a positive impression on today's sports and live entertainment enthusiasts as well as the next generation of fans.
Stadiums that embrace these digital transformations now will find themselves in an advantageous position vis-à-vis the competition as smart stadium environments become the norm. Ultra-fast 5G connectivity can be central to the innovations that stadium operators are prioritizing in the coming year, and this essential wireless network infrastructure can create a strong foundation for the smart stadium of the future.
Learn more about how Verizon's expertise and solutions can help to create future-ready facilities.
The author of this content is a paid contributor for Verizon.
1Deloitte, 2023 media and entertainment industry outlook, page 7.
2Stadium Tech Report & Verizon, Stadium Connectivity White Paper, October 2023, page 4.
3Ibid.
4Ibid.
5Based on Verizon Ford Field point-of-contact (POC) trials
6Op.Cit. Stadium Tech Report & Verizon, page 4.
7Ibid.
8Ibid, page 3.
9Ibid.
11Snap x Ipsos, Augmentality Shift Global Report, 2022, page 12.
12Stadium Tech Report & Verizon, Stadium Connectivity White Paper, October 2022, page 5.
13National Center for Spectator Sports Safety and Security, Venue Security Director Survey, 2022, page 5.
14Op.Cit., Stadium Tech Report & Verizon, page 3.
15Ibid, page 5.
16Ibid.