Global Motorsports Market - 2023-2030

Market Overview

The Global Motorsports Market reached US$ 5.2 billion in 2022 and is expected to reach US$ US$ 9.29 billion by 2030, growing with a CAGR of 7.8% during the forecast period 2023-2030. The motorsport industry is involved with the design, development and manufacture of prototypes, conduction and telecast of racing events across the globe.

Modern motorsport companies have developed a unique ability to use sporting competition and entertainment as a catalyst for engineering and manufacturing advancements, generate revenue and attract consumer attraction towards their products.

The growing incorporation of advanced technology-based events such as events specifically for electronic vehicles, tends to increase the participation and viewership of motorsports, thereby push the Global Motorsports Market trends upward. The booming interest in motorsports and sporting events from youngsters also provides the Global Motorsports Market with extensive market opportunities.

Europe holds the largest share in the global motorsports market, accounting for more than 40% of the market. The dominant position of Europe can be attributed to several factors, including the presence of major market players and the region's ability to host large-scale sporting events successfully. Among the different race series segments, formula racing takes the lead with over a quarter of the market share. The aforementioned fact can be primarily attributed to its widespread popularity and the substantial fan base it enjoys.

Market Dynamics

Generation of New Automotive Technologies due to Motorsports

Automobile manufacturers benefit from motorsports in the form of a real, concrete economic incentive. Many automakers function as a research and development program and an advertising platform, allowing them to concurrently develop and test new technologies while also boasting about their performance compared to other manufacturers.

For instance, electric vehicles have quickly gained traction in modernity, with manufacturers trying to provide automobiles that run on batteries and are propelled by electric motors. However, the respective technology was first introduced in the world of motorsports before it gaine dtraction globally.

Formula E, a new FIA racing series that began in September 2014 was the first platform to feature single-seater cars that are powered entirely by electricity. Similarly, many technologies developed for the race tracks are now employed in the automotive consumer market.

Further, such technologies could improve the engagement of fans in motorsports Therefore, the generation of new automotive technologies due to motorsports is a major market driver capable of attracting more participants and investors into the automotive racing market.

Sponsorship and Advertising Opportunities

Motorsports events, such as Formula 1 races, NASCAR events, and endurance races, have a significant economic impact on host countries and regions. Such events attract thousands of spectators, generate tourism revenue, and boost local businesses, including hospitality, retail, and transportation.

Post-2020 statistics from the Ministry of Commerce and Tourism reveal that the hosting of a major international motorsports event increases tourism revenue by an average of 20%. The aforementioned positive impact is mainly due to the influx of international visitors who contribute to local economies through accommodation, dining, shopping, and transportation.

Due to the facts mentioned above, it could be concluded that motorsports offer a unique platform for companies to promote their products and services to a global audience. With millions of viewers and a diverse fan base, sponsorship and advertising in motorsports have become a valuable marketing strategies for businesses across various sectors. Furthermore, the digital age has expanded the reach of motorsports through live streaming and social media, providing enhanced exposure for sponsors.

Based on the latest data from the Department of Business and Industry, the sponsorship revenue in the motorsports industry has witnessed an average annual growth rate of 12% since 2020. The respective trend demonstrates the increasing appeal and effectiveness of motorsports as a marketing platform as well as how sponsorship and advertising opportunities boost the motorsports market

Growing Environmental Concerns Regarding the Extensive Combustion of Fossil Fuels

Apart from the visible pollution created by cars, the biggest source of pollution in sports is logistics. The ten Formula One teams fly their equipment and cars from one side to the next, with just a small portion of their freight traveling by sea. Team members travel by conventional airplane between countries, while drivers and top executives travel by private jet. Every weekend, Pirelli supplies thousands of tires; if the race is dry, the 2000 wet weather tires are discarded.

Further, Pirelli claims to generate power by burning tires, which is definitely not the most environmentally friendly approach. As the extremely polluting nature of motorsports is being frowned upon by more and more woke public.

The aforementioned fact could affect the viewership and revenue generation potential of the market, the respective factor could restrain the market's growth. However, by adopting greener technologies and aligning with broader sustainability goals, the motorsports industry can mitigate the negative impact of environmental concerns and ensure its long-term relevance and growth.

COVID-19 Impact Analysis

COVID-19 severely impacted fan engagement in motorsports. With races taking place without spectators or being canceled altogether, the live event experience was compromised. Fans were unable to witness the excitement and atmosphere that races usually provide, leading to a decline in overall interest. As a result, broadcasters faced challenges in maintaining viewership and advertising revenue. However, motorsports organizations and teams adapted by leveraging digital platforms and virtual experiences to engage with fans remotely.

Further, the absence of motorsports events impacted local economies that rely on race tourism, such as hotels, restaurants, and transportation services, significantly reducing revenue and job losses in these sectors. Nonetheless, governments worldwide recognized the motorsports industry's significance and provided support to mitigate the pandemic's impact.

Financial assistance, tax breaks, and other relief measures were implemented to help racing series, teams, and associated businesses navigate the crisis. However, the industry demonstrated resilience by adapting to digital platforms and implementing strict safety measures.

Segment Analysis

The Global Motorsports Market is segmented based on type, channel, race series and region.

Ability to Generate Sponsorships and Extensive Revenue

Broadcasting networks are the most important source of earnings for the motorsport industry. With the growth of the OTT audience, producers may reach a wider range of audiences. As a result, investment in television rights is projected to bring in billions of dollars in revenue for racing. Sponsorships constitute an important way to cover the costs of presenting an event; nevertheless, ticketing for live audiences serves a purpose in generating income from the events. Therefore, broadcasting holds major share in the channel segment of motorsports market.

Additionally, merchandising has become an important aspect in ensuring the financial viability of businesses affiliated with motorsport events. The sale of shirts and other items provides a consistent stream of cash while also encouraging fan interaction. As the fan base for motorsports is growing, and modern consumers are exhibiting increased affinity towards merchandises, the respective segment is growing at a very swift pace.

Geographical Analysis

Presence of Major Players, Growing Fanbase for Motor Racing Events and Growing Automotive Sector

Asia-Pacific is the fastest growing region in the motorsports industry owing to the presence of major manufacturers, particularly motorcycle manufacturers such as Suzuki, Honda, among other. Further, as the population of Asia-Pacific and the fanbase for automotive racing is growing, the revenue generated by motorsports through broadcasting the racing events also grows significantly.

Thus, making the respective region a major hub in terms of revenue generated through broadcasting racing events. Additionally, Australia is one of the major hosts in dirt and off road racing events in addition to Japan, whose MotoGP segment also has a major fanbase across the globe. Moreover, China, South Korea and India shows major growth in their automotive industries during the forcast period.

Further, Asia-Pacific's robust economic growth has been a key catalyst for the rapid development of the motorsports industry. As countries in the region witness a rise in disposable income, the demand for recreational activities, including motorsports, has surged. Increasing affluence has led to a growing number of enthusiasts, both as spectators and participants, fueling the expansion of the market. Governments across Asia-Pacific have recognized the economic and tourism potential of the motorsports sector, resulting in substantial support and infrastructure investments.

Competitive Landscape

The major global players include: Ferrari S.p.A, Mercedes-Benz GmbH, Red Bull GmbH, McLaren Automotive Limited, Aston Martin Racing, Audi Sport, Dempsey-Proton Racing, e.dams-Renault, Extreme Speed Motorsports, and Force India.

Why Purchase the Report?

• To visualize the Global Motorsports Market segmentation based on type, channel, race series and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of motorsports market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Motorsports Market Report Would Provide Approximately 61 Tables, 67 Figures And 197 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies