The global motorsports market was valued at USD 5.2 billion and is projected to reach a market size of USD 9.48 billion by the end of 2030. The market is expected to grow at a CAGR of 7.8% during the forecast period of 2023–2030.
Motorsport refers to competitions or any other sporting events that take place using automobiles. Many countries hold this as a popular athletic event. This market has seen steady progress over the years and holds enormous potential. This market had a significant presence in the past, dating back to roughly the 18th and 19th centuries. Nowadays, this market has grown substantially due to heightened interest, innovation, and technological advancement. Soon, with additional initiatives, global expansion, and community involvement, this market will expand. This market is expected to witness significant growth during the forecast period.
Key Market Insights:
According to Statista, Ferrari was the most valuable Formula 1 team in 2023, worth around US$3.9 billion. Meanwhile, Mercedes was not far behind, with the team worth around US$3.8 billion.
In 2021, the total revenue of Formula 1 Group was approximately US$2.14 billion, an increase of more than 86 percent from the previous year.
The number of people taking part in motorsport in England is set to double in 2022 compared to the previous year. In 2022, approximately 73.3 thousand people participated in motorsport in England.
There are different types of car racing and categories, such as drag racing, rally racing, and touring car racing. The MotoGP class includes motorcycles that are not limited by a specific engine configuration. A survey conducted in April 2021 revealed that six percent of all respondents in the United States were avid MotoGP fans.
According to Impakter, Formula 1 (F1) produces approximately 256,000 metric tons of CO2 annually. 73% of these emissions are generated by the logistics of moving race kits around the world 23 times a year. Sir Lewis Hamilton has spent the last decade raising awareness of a variety of sustainability issues, from pushing F1 to be more environmentally friendly and removing diversity barriers to promoting organic food and nutrition.
Motorsports Market Drivers:
Technological advancement paves the way for market success.
Automobiles have gone through many developmental changes over the years. With the advent of artificial intelligence, telemetry, data analysis, real-time monitoring, aerofoil technology, virtual reality, etc., there have been many improvements in performance, battery life, engine speed, and safety. Other milestones include semi-automatic transmissions, energy-efficient Formula 1, all-wheel drive, and other carbon fiber materials. In addition, the research and development sector is working intensively on new launches and updates. This is backed by many prestigious companies and other business tycoons. In addition, there is a growing concern about our environment, and therefore, people are leaning towards sustainable initiatives. Sustainable certifications and green plants are further helping to revitalize the market. In addition, engineers are working on robotic racing engines and VR training. Experts predict that these new creations will help generate good profits.
Global fan engagement contributes to market growth.
Many fans help it flourish by promoting the latest inventions through their social media accounts. Digital streaming, both live and recorded, is very popular. Videos, reels, YouTube stories, etc. are other means promoted through various platforms, which include YouTube, Facebook, Discord, Telegram, Instagram, and Twitter. Constant updates are sent out. This is a benefit to the market. There are various groups created to support a particular driver or car. This helps the audience connect with like-minded individuals around the world. All these engagements help to raise funds, find sponsors, and increase popularity through advertising and marketing activities.
Motorsport Market Restraints and Challenges:
The major constraints currently facing the market include cost, environmental issues, safety concerns, and dependence on sponsorship.
Buying these vehicles requires a large investment. In addition, maintenance, insurance, and repairs are other costs that come up. This can demotivate individuals from buying these cars. Second, this market is quite often met with resistance due to carbon, carbon dioxide, and other emissions that contribute to global warming. Traffic and tire damage also contribute to pollution. Government authorities are enforcing stricter laws and measures for some cars. Third, another obstacle is mortality. There are accidents, fatalities, and fires that cause serious injuries to the driver. Also, while there is a fan base, it is not as popular as the sport. This can cause problems in finding sponsors. Events such as economic crises and other epidemics can change priorities and cause losses to the market.
Opportunities in the motorsport market:
Electric cars are gaining huge popularity due to their economical features, such as lower noise, carbon footprint, and emissions. Electric plants are expected to provide ample opportunities for the market. Formula E, Moto E, Extreme E, and Touring Car are among the important electric cars. Along with this, green technology projects are being carried out to ensure sustainable racing. Secondly, safety feature innovations such as Halo, survival cells, biometric gloves, and fuel tanks were added. Third, community engagement and fan engagement are prioritized through various promotional strategies.
MOTORSPORTS MARKET REPORT COVERAGE:
Market Size Available
2022 - 2030
2023 - 2030
By Racing Series, Channel, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Key Companies Profiled
Volkswagen AG, Mercedes AMG, Red Bull Racing, Williams, Ferrari N.V., National Association for Stock Car Auto Racing, BMW, Renault Group, Citroen, McLaren Group
Based on the racing series, Formula 1 is the largest segment in the global motorsports market. This has a share of approximately 38%. According to the report, it is estimated to reach a total value of USD 4374.3 million by 2027, with a CAGR of 10.7% from 2022 to 2027. The success of the segment is due to reasons such as global expansion, technological innovation, security, high speed, historical heritage, brand sponsorships, digital engagement, and frequent racing events. In addition, the support of celebrities, famous personalities, and other creators contributes to its development. The electric version of Formula 1 is gaining significant popularity due to its ecological properties and increasing investment. Touring cars are one of the fastest-growing segments due to their growing acceptance, minimal risk of injury, growing fan base, and investment. MotoGP is also among the best category leaders, especially in the two-wheeler segment in this market.
Race host fees
Based on the channel, broadcasting is the largest segment in the market. It holds a share of around 28%. According to the 2022–2027 report, it is estimated to grow at a CAGR of 9.9% during the forecast period of 2022–2027. This channel has live streaming, highlights, recorded videos, and updates that are released through various social media platforms. Most of the popular automotive shows are aired through this channel. In addition, it is affordable. This helps generate significant amounts of revenue in the motorsports market, thereby attracting various investors. Merchandising is one of the fastest-growing segments. Fans can buy various items owned by their idols. Business models franchise their income through various merchandising channels by selling souvenirs. Due to various strategies and digitization, this segment is expected to witness lucrative growth.
Middle East and Africa
Depending on the region, Europe is the dominant region of the global market, with a gross share of 38%. Countries like Italy, Germany, and the United Kingdom are in first place. This is due to technological advancements, a wider fan base, economic strength, more events, the presence of key companies, brands, sponsors, demand, expertise, drivers, and infrastructure. This market is expected to witness significant growth during the forecast period. North America is the second-largest market, with countries such as the United States and Canada at the forefront. This region is estimated to have a share of approximately 30%. However, Asia Pacific is considered to be the fastest growing due to increasing investment, extensive research activities, urbanization, technological development, economic stability, increasing demand, increasing broadcasting, and more events in popular hotspots. This region has a total share of around 20%. Fast-developing countries are Japan, Malaysia, Singapore, Australia, and China. In addition, the involvement of prestigious universities and institutes, especially engineering departments, helps the development of the region.
COVID-19 Impact Analysis on the Global Motorsports Market:
The virus outbreak has damaged the market. Lockdowns, movement restrictions, and social isolation were the new norm. This led to the temporary closure of businesses. All events were canceled or postponed due to the pandemic. This reduced fan engagement due to the lack of live broadcasts and launches. In addition, priority was given to the development of vaccines, COVID kits, and other medical devices. All investments from companies, investors, and other government bodies have been redirected to healthcare needs. However, post-pandemic, the market is picking up due to increased restrictions and the easing of guidelines. In addition, the pandemic has highlighted the importance of sustainability. To keep up with this, companies have increased their funding for electric and other green cars. According to the report, Formula 1's revenue will reach $2.5 billion in 2022, while profits continue to grow as the category moves on from the COVID period that affected the previous two years.
The latest trends and developments:
Companies in this industry seek to increase their market share using a variety of tactics, including alliances, investments, and acquisitions. Along with keeping prices competitive, businesses pay a lot to push existing technologies and find new ones. This also led to more expansion.
Robo-racing is a trend in this market. driving cars without a driver. These cars are electrically powered self-starting cars. Autonomous technology has gained considerable attention, and researchers are working on new launches for it. The Indy Autonomous Challenge (IAC) provides various opportunities for active racing in this segment.
Red Bull Racing
National Association for Stock Car Auto Racing
In March 2023, Riedel Networks entered into a partnership with Kalaam Carrier Solutions (KCS) as part of its commitment to deliver high capability for motorsport events across Bahrain, Saudi Arabia, Qatar, and the UAE.
In October 2021, Red Bull and Honda collaborated on motorsport activities beyond F1. The diversification agreement aimed to see the Red Bull group of companies and Honda work together on a variety of motorsport activities, encompassing the transition of power unit development from Honda to Red Bull Powertrains, young driver development, marketing and branding initiatives, as well as competitive activity across a range of motorsport disciplines.
In February 2020, Axalta, a leading global supplier of liquid and powder coatings, and 12-time NASCAR Cup Series champion Hendrick Motorsports agreed to a five-year contract extension that would take one of the most enduring sponsorships in auto racing through 2027. As part of the new agreement, Axalta was a primary sponsor of the No. 24 team with driver William Byron for 14 Cup Series races each year beginning in 2021.
Chapter 1. Motorsports Market – Scope & Methodology
1.1 Market Segmentation
1.2 Scope, Assumptions & Limitations
1.3 Research Methodology
1.4 Primary Sources
1.5 Secondary Sources
Chapter 2. Motorsports Market – Executive Summary
2.1 Market Size & Forecast – (2023 – 2030) ($M/$Bn)
2.2 Key Trends & Insights
2.2.1 Demand Side
2.2.2 Supply Side
2.3 Attractive Investment Propositions
2.4 COVID-19 Impact Analysis
Chapter 3. Motorsports Market – Competition Scenario
3.1 Market Share Analysis & Company Benchmarking
3.2 Competitive Strategy & Development Scenario
3.3 Competitive Pricing Analysis
3.4 Supplier-Distributor Analysi
Chapter 4. Motorsports Market - Entry Scenario
4.1 Regulatory Scenario
4.2 Case Studies – Key Start-ups
4.3 Customer Analysis
4.4 PESTLE Analysis
4.5 Porters Five Force Model
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Powers of Customers
4.5.3 Threat of New Entrants
4.5.4 Rivalry among Existing Players
4.5.5 Threat of Substitutes
Chapter 5. Motorsports Market – Landscape
5.1 Value Chain Analysis – Key Stakeholders Impact Analysis
5.2 Market Drivers
5.3 Market Restraints/Challenges
5.4 Market Opportunities
Chapter 6. Motorsports Market – By Racing Series
6.1 Introduction/Key Findings
6.2 Formula One
6.3 Touring car
6.8 Y-O-Y Growth trend Analysis By Racing Series
6.9 Absolute $ Opportunity Analysis By Racing Series, 2023-2030
Chapter 7. Motorsports Market – By Channel
7.1 Introduction/Key Findings
7.5 Race host fees
7.8 Y-O-Y Growth trend Analysis By Channel
7.9 Absolute $ Opportunity Analysis By Channel, 2023-2030
Chapter 8. Motorsports Market , By Geography – Market Size, Forecast, Trends & Insights
8.1 North America
8.1.1 By Country
8.1.2 By Racing Series
8.1.3 By Channel
8.1.4 Countries & Segments - Market Attractiveness Analysis
8.2.1 By Country
18.104.22.168 Rest of Europe
8.2.2 By Racing Series
8.2.3 By Channel
8.2.4 Countries & Segments - Market Attractiveness Analysis
8.3 Asia Pacific
8.3.1 By Country
22.214.171.124 South Korea
126.96.36.199 Australia & New Zealand
188.8.131.52 Rest of Asia-Pacific
8.3.2 By Racing Series
8.3.3 By Channel
8.3.4 Countries & Segments - Market Attractiveness Analysis
8.4 South America
8.4.1 By Country
184.108.40.206 Rest of South America
8.4.2 By Racing Series
8.4.3 By Channel
8.4.4 Countries & Segments - Market Attractiveness Analysis
8.5 Middle East & Africa
8.5.1 By Country
220.127.116.11 United Arab Emirates (UAE)
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of MEA
8.5.2 By Racing Series
8.5.3 By Channel
8.5.4 Countries & Segments - Market Attractiveness Analysis
Chapter 9. Motorsports Market – Company Profiles – (Overview, Product Portfolio, Financials, Strategies & Developments)
9.1 Volkswagen AG
9.2 Mercedes AMG
9.3 Red Bull Racing
9.5 Ferrari N.V.
9.6 National Association for Stock Car Auto Racing
9.8 Renault Group
9.10 McLaren Group
Frequently Asked Questions
The global motorsports market was valued at USD 5.2 billion and is projected to reach a market size of USD 9.48 billion by the end of 2030. Over the forecast period of 2023–2030, the market is projected to grow at a CAGR of 7.8%.
Technological advancements and global fan engagement are the main drivers propelling the global motorsports market.
Based on racing series, the global motorsports market is segmented into Formula One, touring cars, MotoGP, NASCAR, GT, and off-road.
Europe is the most dominant region for the global motorsports market.
Volkswagen AG, Mercedes AMG, and Red Bull Racing are the key players operating in the global motorsports market.
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