Not at all. Sparring is very beneficial but it is and should be an optional activity. A lot of people never wish to spar and simply want to improve fitness and self-defence. After developing self-confidence through training, some of these people will want to try sparring. The majority of Martial Artists don't spar and a small minority compete. The same applies to the competitive side of the sport there certainly are other skills you can compete in without having to partake in sparring.