Although it started later than some countries, China does not lack the necessary natural resources, and the domestic market will catch up as investment flows into the industry, according An Fuxiu, founder of Sportbank, a Beijing-based sport-related investment consultancy.

"Most extreme sports are related to tourism products and the country has a wide range of activities on offer, from ice sports to water sports and even safari," An said. "But the entire sports industry started later than many mature markets, which is why extreme sports have also fallen behind."

The market is of great potential," she said. "The sport industry has been placed under the spotlight in recent years and with investment coming in, infrastructure improving and professional staff being trained, although it is currently just getting started, the industry will catch up in a very short time."

Liu Yukun contributed to the story.