Motorsports Market

According to Stratistics MRC, the Global Motorsports Market is accounted for $5.47 billion in 2022 and is expected to reach $8.41 billion by 2028 growing at a CAGR of 7.4% during the forecast period. Motorsports are international competitions in which highly tuned and specialized automobiles engage in racing. Cars, bikes, go-karts, boats, trucks, and snowmobiles are among the motor vehicles featured in these competitions. Motorsports are a hugely popular and thrilling kind of entertainment with a huge global fan base that likes watching the races, rooting for their favourite drivers, and celebrating the victory. The main goal of motorsports is to obtain the fastest time or finish first in a race. It increases promotional activities coupled with rising investments by sponsors across the globe. In addition, motorsports can pave the way from technology developments brought about by racing by producing more environmentally friendly and fuel-efficient cars.

According to a report of the International Automobile Federation (FIA), published on December 2019, environmental risk is one of the major challenges faced by the F1 motorsport market, as the F1 driving activities produce around 256000 tonnes of carbon dioxide annually.



Market Dynamics:

Driver:

Broadcast revenue

The rising popularity of the sport motivates broadcasters around the world to make significant financial commitments in order to secure the broadcasting rights to motorsport competitions. As a result, these events have become a significant source of income for the individuals and organizations connected to them. Additionally, participation fees, which cover track testing of vehicles and ticket sales both make significant financial contributions to the industry. Similar to this, sponsorship and merchandising agreements increase the income pot, enhance the marketing of the participating businesses and their respective events, and boost consumer demand for those brands.

Restraint:

High cost of investment

Testing and exposure are the two primary goals of motorsport activity. The majority of a racing car's operating expenses include testing, tires, gasoline, running costs, transporting, and replacement parts. The sponsors make significant financial commitments since these sporting events provide a perfect platform for businesses to advertise their goods. Additionally, the investment in rider training and scouting programs raises questions about the profitability of participating enterprises, which limits the additional investment.

Opportunity:

Integration of new automotive technologies

Motorsports provides actual, tangible financial incentives to automakers, which is a competitive advantage. The inclusion of more events based on cutting-edge technology, such as those designed exclusively for electric vehicles, tends to boost motorsports participation and viewership. They serve as an R&D program and advertising platform for many automakers, enabling them to simultaneously research and test new technology while bragging about their performance in contrast to other manufacturers. The adoption of sustainable products has become simpler by the integration of new technology in motorsports, which is anticipated to create a niche market and a brand-new source of income.

Threat:

Impact on environment

Motorsports cars have a negative influence on the environment and contribute to noise and air pollution. Driving creates tons of carbon dioxide. The motorsports sector has come under fire for failing to address the dangers of noise and air pollution. Critics also contend that the land and resources used to build the infrastructure for racing may be better used for business and charitable endeavours that would be advantageous to the community and environment. These sporting events' detrimental effects on the environment will make it more difficult for this market to expand.

Covid-19 Impact

The racing industry has been significantly impacted by the COVID-19 epidemic. Several of the major competitions, including the Australian Grand Prix, were postponed, cancelled or held in secret. The teams, drivers, and sponsors that depend on these competitions for their income have also been impacted by the epidemic. Many teams and event planners have been forced to cut expenditures due to the fall in income, which has led to layoffs and wage cutbacks. Numerous sponsors have also stopped giving their support as a result of the uncertainty of the situation.

The broadcasting segment is expected to be the largest during the forecast period

The broadcasting segment is estimated to have a lucrative growth. Broadcasting has become the dominant revenue channel in the motorsports market. In comparison to traditional revenue streams, it offers several benefits such as the ability to reach a worldwide audience and the opportunity to provide recurring income through membership fees, media rights fees, and advertising revenue. The need for top-tier entertainment material has grown correspondingly. Broadcasters have responded by offering more in-depth reporting, analysis, and behind-the-scenes material, which has improved the quality and accessibility of their programs. These programs have increased the number of spectators at racing events while also bringing in a sizable sum of money for the broadcasters.

The formula one segment is expected to have the highest CAGR during the forecast period

The formula one segment is anticipated to witness the fastest CAGR growth during the forecast period. Formula One (F1) is widely regarded as the pinnacle of motorsports. It showcases the world's most cutting-edge drivers, teams, and cars. In the F1 racing series, pace, technology, innovation, and tactical strategy all play a role in determining the winner of each race. The F1 racing series has changed significantly as a result of technology advancements and safety rules that have allowed for the creation of ever-faster vehicles. In recent years, the F1 racing series has dominated the motorsports industry, growing faster than rival racing series like IndyCar and NASCAR.

Region with largest share:

Europe is projected to hold the largest market share during the forecast period owing to its extensive heritage in the industry. The continent is home to some of the world's most renowned circuits and events. The world of racing revolves around Europe. Europe is a popular travel destination for spectators, drivers, and teams due to its friendly welcome of the motorsports sector. It hosts more than 700 competitions annually. Some of the most well-known racetracks in the world like as Monza, Brands Hatch, and Monaco, can be found on the continent. The established and seasoned suppliers of racing parts in Europe persist in to be competitive.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to huge fan population. In Europe, racing is more than simply a hobby—it's a way of life. Some of the most devoted motorsports fans in the world reside in Europe, and their undying love and support for the sport are felt all around the world. The celebratory atmosphere created during races, which gives every event the air of a festival, is clear evidence of this fan culture. The popularity of racing attracts teams and drivers, making it a desirable location for competition.



Key players in the market

Some of the key players profiled in the Motorsports Market include Toyota Motor Corporation, Liberty Media, AMG Motorsport, Ferrari S.p.A, McLaren Group, Red Bull Racing, BMW Motorsport, Renault Group, Citroen, Automobile Club de l'Ouest, Aprilia, Mercedes-Benz, Ducati, Yamaha, Suzuki, MRF, Pirelli, Aston Martin Red Bull Racing, Roush Fenway Racing and Team Penske.

Key Developments:

In November 2021, Pirelli Tire North America has announced the addition of 18-inch tires to the Trans Am Series TA class for the 2022 season. The diameter of the brand-new P Zero Trans Am TA class tires will increase from 16 to 18 inches. The most visible change is the sidewall reduction, which now resembles low-profile Pirelli tires, which have long been the preferred choice of the world's most prestigious performance road cars.

In October 2021, Mercedes-Benz announced that it will be offering Dolby Atmos® in a range of its top car models providing the ultimate in-car audio experience to its customers, allowing listeners to connect with music to its fullest creative potential.

In June 2021, Ferrari S.p.A. has signed an agreement with Amazon Web Services to become their official cloud, machine learning and artificial intelligence provider. The agreement will bolster the performance and design of its exotic racing and street cars by taking advantage of the computing power of the AWS cloud.

In January 2021, McLaren Racing and Formula E have signed an agreement to enter the ABB FIA Formula E world championship and manufacturer line-up from the new Gen3 era.

In March 2020, the Renault F1 team and DP world have signed an agreement making DP World the global logistics partner and the title partner of the team which will become the Renault DP World F1 team. The partnership helps explore opportunities to increase the efficiency of their supply chain.

Racing Series Covered:
• Formula One
• MotoGP
• FIA International Hill Climb
• Super DirtCar Series
• ARCA Menards Series
• IndyCar
• IMCA Modified Championship
• World of Outlaws
• Blancpain Endurance Series
• Blancpain Sprint Series
• NASCAR
• GT
• Off-Road
• Intercontinental GT Challenge
• World Touring Car Championship
• Hill Climb Racing
• BTCC
• Trans AM Series
• Rally Racing
• Other Racing Series

Revenue Channels Covered:
• Broadcasting
• Ticketing
• Sponsorship
• Merchandising
• Race Host Fee
• Advertisements
• Other Revenue Channels

Applications Covered:
• Venue Racing
• Non-Venue Racing

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances