Global Motorsports Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Racing Series (Formula One, MotoGP, NASCAR, GT, Off-Road and Others), Revenue Channel (Broadcasting, Ticketing, Sponsorship, Merchandising and Others) and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Published: January, 2024
ID: 9317
Pages: 175

Global Motorsports Market Size (2024 to 2029)

The size of the global motorsports market was worth USD 5.51 billion in 2023. The global market size is expected to be valued at USD 8.7 billion by 2029 from USD 5.95 billion in 2024, growing at a CAGR of 7.9% from 2024 to 2029.

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. The most well-known of these is known as auto racing or automobile racing, and it involves autos. Formula One, Indycar, GP2, Formula V6 Asia, Formula Nippon, Formula Three, F2, Formula Palmer Audi, Formula Atlantic, and various Formula Racing and other championships are currently being promoted.

MARKET DRIVERS

Broadcast revenue is the primary driver for the motorsport market.

The rising popularity of the sport motivates broadcasters around the world to make massive investments to earn the broadcasting rights of motorsport events, therefore, becoming a major source of revenue for people and entities associated with the respective events. Furthermore, participation fee, which includes vehicle testing on tracks and ticket sales, also contribute a huge chunk of revenue for the market. Similarly, sponsorship and merchandising deals add to the revenue pool as well as leverage the promotion of respective events and the marketing of the participating brands and drivers.

Innovation is a key driver for the motorsport market.

Automotive manufacturers are heavily invested in R&D to upgrade their vehicles and gain an advantage in the competition. Such investments create positive economies of scale contributing to the growth of players within the motorsport industry and also other industries like tire, consumer and commercial vehicles, oil and electric, technology, insurance, and others.

MARKET RESTRAINTS

Despite its growing popularity, the motorsport industry faces many challenges which hinder the potential market growth.

First and foremost, the prevailing cost of investment is large enough to create uncertainty regarding the return on investments among new/potential participants. Additionally, the high cost of production, repair, and insurance of motor vehicles induces concerns over profitability in participating firms, hence, restricting further investments. Similarly, the risk of fatality crashes demotivates new drivers to venture into the motor sporting world. Finally, motorsport when compared to other sports like Football does not attract billions of viewers. Even the most popular motorsport- F1 attracts followers from a relatively small niche of people around the world, therefore, the market growth is relatively slower than other sports.

The motorsport industry has been criticized for ignoring air and noise pollution threats. Critics also believe that land and resources spent on racing infrastructure can instead be utilized for commercial and welfare activities which may be beneficial for the society and environment. Albeit, supporters of motorsport believe the industry does more good through employment generation and the nascent environment-friendly EV racing segment. Furthermore, the motorsport industry is also crucial to the development of fuel-efficient vehicles and sustainable engineering and technological innovations.

Impact Of COVID-19 On the Global Motorsports Market

The global motorsport market suffered immensely due to the spread of COVID-19. Shutting down manufacturing units in China, Japan, South Korea, and India halted the supply of motorsport vehicles and components across the world. Italy, the worst-hit nation in 2020, is still in the recovery phase. The European market has fallen drastically due to the economic collapse of Italy, which is the market leader in the region. The Motorsport market also witnessed a significant drop in revenue because of events hosted without live spectators and due to a drop in merchandise sales.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

7.9%

Segments Covered

By Racing Series, Revenue 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 of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

Market Leaders Profiled

Mercedes AMG (Germany), BMW (Germany), McLaren (UK), Williams (UK), Yamaha (Japan), Ducati (Japan), Suzuki (Japan), Aprilia (Italy), Pirelli (Italy), MRF (India), and Others.

 

SEGMENTAL ANALYSIS

Global Motorsports Market Analysis By Racing Series

Formula One (F1) is the most popular motorsport event in the world and is expected to dominate beyond the forecast period. MotoGP is the second most popular motorsport event and the most popular in the two-wheeler segment. NASCAR is primarily popular in North America and is growing at a medium pace. Formula-E, the electric version of F1, is the fastest-growing racing event owing to the potential development of EVs and growing environmental concerns.

Global Motorsports Market Analysis By Revenue Channel

Broadcasting channels are the biggest source of revenue for the motorsport market. With the rise in the OTT user base, broadcasters can expand their reach to a wider array of audiences. Therefore, investment in broadcasting rights is expected to bring in revenue worth billions to the motorsport market during the forecast period. Sponsorships are an important avenue to cover the cost of hosting an event, meanwhile, Ticketing for the live audience is beneficial in generating profits from the events. Merchandizing has become a key factor in maintaining the financial liquidity of the entities associated with motorsport events. The sale of apparel and other merchandise acts as a regular source of income and also promotes fan engagement. F1 merchandise is the fastest-growing segment with second copies the only threat to the market.

REGIONAL ANALYSIS

Europe is the largest market for the motorsport market. The presence of leading motor companies is the driving factor in the region. Italy is the leading country in Europe with domination in both motor vehicle and tire sectors. Germany and UK follow up with leading motor companies participating in motorsport events. France, Monaco, Belgium, and Portugal are the top nations with F1-MotoGP hosting infrastructure. The European region is expected to hold 57% of the global motorsport market during the forecast period.

North America is the second-largest market for the Motorsport industry. Apart from F1 and MotoGP, NASCAR, Drag Racing, off-road racing, truck racing, and motorcycle stunt riding are prominent motorsports in the US, Canada, and Mexico.

The APAC region is the fastest-growing market in terms of broadcasting and viewership. China, India, and South Korea will witness the fastest growth due to the rapid development of the automobile, tire, and motorsport component industries in the region. Australia is the leader in hosting off-road, water, air, and dirt bike racing events. Japan is the leading nation in the MotoGP segment, housing the best motorbike companies in the world.

The LAMEA region is led by South American nations. Argentina is the biggest market for F1 and MotoGP while Brazil leads the water motorsport sector. Chile is experiencing significant growth in the F1/MotoGP segment. The UAE is the fastest-growing market with huge investments made in the development of F1 and MotoGP tracks. South Africa and other smaller African nations are growing slowly in the water motorsport sector.

KEY PLAYERS IN THE GLOBAL MOTORSPORTS MARKET

Mercedes AMG (Germany), BMW (Germany), McLaren (UK), Williams (UK), Yamaha (Japan), Ducati (Japan), Suzuki (Japan), Aprilia (Italy), Pirelli (Italy) and MRF (India) are some of the major players in the global motorsports market.

RECENT HAPPENINGS IN THE MARKET

  • Emma Gilmour, a rally driver from New Zealand, was named McLaren's first female racer on Wednesday, and she will compete in the new electric Extreme E off-road championship next year.
  • SARTA and Goodyear Tire & Rubber Company, two leaders in future transportation in Northeast Ohio, announced today cooperation to test intelligent tire sensors and prototype tires on SARTA's fleet of diesel and zero-emission hydrogen fuel cell-powered (HFC) buses.
  • For the 2022 season, Pirelli Tire North America has announced the addition of 18-inch tires to the Trans Am Series TA class. 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.
  • Mercedes-Benz has revealed that its vehicles will be equipped with Dolby Atmos, the most cutting-edge technology utilized in modern cinema. For this latest endeavor, it has even teamed up with Dolby Laboratories. The special Mercedes-Maybach automobiles, however, will be the first to include Dolby Atmos, followed by the flagship S-Class and other Mercedes-Benz models.

DETAILED SEGMENTATION OF THE GLOBAL MOTORSPORTS MARKET INCLUDED IN THIS REPORT

This research report on the global motorsports market has been segmented and sub-segmented based on racing series, revenue channel and region.

By Racing Series

  • Formula One
  • MotoGP    
  • NASCAR     
  • GT  
  • Off-Road

By Revenue Channel

  • Broadcasting
  • Ticketing
  • Sponsorship
  • Merchandising

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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