Motorsports Market Size, Share, Industry, Forecast and outlook (2024-2031)

Motorsports Market Size

The Global Motorsports Market reached USD 5.2 billion in 2022 and is expected to reach USD 9.29 billion by 2030, growing with a CAGR of 7.8% during the forecast period 2024-2031. Although, the global motorsport market mainly generates its revenue and sales from numerous competitive events that employ motorized vehicles for racing as well as non-racing purposes. 

The respective market also involves in designing, developing and manufacturing of prototypes, including chassis, materials, and electronics, among others. Over the years, the Global Motorsports Market has become a major catalyst for several developments in engineering and manufacturing sectors, developing technologies and products utilized by High-Performance Engineering (HPE) customer groups, such as defense, marine, aerospace and automotive. 

Competitive engineers, who steadily enhance components to deliver identifiable advantages and continued performance on the race track, are critical to improving the Global Motorsport Market opportunities and success. Further, merchandising and branding is a key revenue pockets improving the global motorsports market shares.

Europe dominates the regional segment of the Global Motorsports Market with over 2/5th of the market share. The dominance above is mainly due to the presence of significant market players and the capability of the region to host large-scale sporting events. Formula Racing dominates the race series segment with over 1/4 th market share. The respective fact is mainly due to its widespread popularity and huge fan base.

Market Scope

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Market Dynamics

The Growing Integration of the Internet and Social Media into Motorsports

The internet and social media revolutions have radically transformed the global motorsport business, as anyone can now post motorsport content to a wider audience. Furthermore, the respective fact enables viewers with additional coverage, such as behind-the-scenes conversations with contenders, and technical news, among others, which today's fans, particularly the younger generation, have a voracious desire for. The fact that the motorsports market has done an exemplary balance in presenting technical coverage and keeping personal information private by educating their supporters further boosts the market’s appeal and revenue generation potential. A major demonstration of the point above is the increased fan interactions and viewership of F1 Live from London in July 2022. 

Further, integrating the Internet and social media has opened up new avenues for digital marketing and sponsorship in motorsports. Brands can now leverage social media platforms to reach a highly engaged audience and create targeted advertising campaigns. Social media influencers and motorsports personalities are crucial in promoting brands and products to their followers, offering unique sponsorship opportunities. 

The shift has expanded the sponsorship landscape, allowing for more diverse and innovative partnerships between brands and motorsports entities. Therefore, it is relevant to conclude that the growing integration of the internet and social media into motorsports is a major market driver improving the motorsport market opportunities.

Technological Advancements and Development of Youth Talent

The motorsports industry has been at the forefront of technological advancements, driving innovation and pushing the boundaries of engineering. According to the National Transport Agency's latest report, R&D investment in the motorsports sector has witnessed a steady increase since 2020, with a growth rate of 8.5% per year. 

Governments across the globe have recognized the importance of motorsports as a testing ground for cutting-edge technologies that can subsequently be implemented in the automotive industry. The respective support has led to increased investment in research and development (R&D) by both the public and private sectors.

Further, motorsports have become a breeding ground for nurturing young talent and developing future professionals in the automotive industry. Data from the Ministry of Sports and Youth Affairs reveals that post-2020, the number of youth engagement programs in motorsports has grown by 15%. 

Governments have recognized the importance of investing in the training and development of young drivers, engineers, and technicians, offering various initiatives and support programs to encourage their participation. Therefore, technological advancements and youth talent development could act as major drivers for the Global Motorsports Market.

Growing Environmental Concerns Regarding the Extensive Combustion of Fossil Fuels

Cars propelled by fossil fuels have dominated the motorsport market throughout history. As we already know, fossil fuels are hazardous to the environment. For instance, The Canadian Grand Prix, held each year at Montreal's Circuit de Gilles Villeneuve, generates a 'poor air day,' a condition in which dangerous pollution is trapped between hot and cold air, according to the Montreal Gazette. The aforementioned poor air days, according to the Société pour vaincre la Pollution (SVP), a Montreal-based environmental organisation can cause everything from asthma to heart attacks. 

The extensive combustion of fossil fuels in motorsports has led to negative public perception, with the industry being viewed as environmentally unsustainable. Concerns about carbon emissions, air pollution, and the depletion of natural resources have prompted some individuals to question motorsports' relevance and social responsibility. The impact of environmental degradation is becoming increasingly obvious and the world public is becoming more aware of the threat of environmental destruction. 

Market Segment Analysis

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

Extensive Viewership and Participation from Motorsports Giants

Formula racing leads the race series segment due to its large audience, sponsorships and engagement of major motorsports brands. Formula One is a fascinating industry in and of itself. F1 is, in fact, the most-watched annual athletic series in the world, with over 525 million viewers tuning in during the season. It has an estimated yearly turnover of more than USD 4 billion, employs around 50,000 people in more than 30 countries and represents cutting-edge technology in the automobile business. 

Outside of racing, the technology developed for Formula One racing is applicable to a wide range of industries. Motorsports giants often bring cutting-edge technologies and innovations to F1. The involvement of motorsport giants stimulates competition and drives advancements in aerodynamics, engine technology, and safety measures, among other areas. The continuous pursuit of excellence and the push for innovation from these giants contribute to F1's reputation as a technologically advanced and exciting motorsports series. The respective, in turn, attracts more fans and participants, further bolstering F1's market share. 

Market Geographical Share

Increasing Backing from European High-End Automakers and Capacity to Facilitate Large Auto Sporting Events

Increasing backing from European high-end automakers and the capacity to facilitate large auto sporting events have a significant positive impact on the market share of Europe in the global motorsports market. European high-end automakers, renowned for their performance-oriented vehicles and advanced automotive technology, play a crucial role in shaping the motorsports market. 

The involvement and backing from these manufacturers contribute to the growth and prestige of motorsports events, attracting global attention. Thus the support from these automakers helps enhance the overall market share of Europe in the global motorsports industry.

Further, hundreds of races are being conducted in each year around Europe, whether on the road or on closed circuits, attracting big spectators. The respective capacity to facilitate sporting events, attract crowd and the fact that Europe was the initial location to host racing sports further allowed the region to gain dominance in the motorsports sector. As people started gathering after the COVID-19 pandemic, the European auto racing is being strengthened further. For instance, in 2022, GT4 European Series boasted a full-season with an entry list of 50 cars and competitive grids.

Motorsports Companies 

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.

COVID-19 Impact

The outbreak of the COVID-19 pandemic in early 2020 had a profound impact on various industries across the globe, and the motorsports sector was no exception. With stringent lockdown measures, travel restrictions, and social distancing guidelines implemented globally, the motorsports industry faced significant challenges in terms of organizing events, maintaining revenue streams, and engaging with fans. 

The COVID-19 pandemic disrupted the racing calendar and forced the postponement or cancellation of numerous motorsports events worldwide. Government-imposed restrictions on large gatherings and international travel limitations made it virtually impossible to hold races as planned.

Major racing series, including Formula 1, NASCAR, and MotoGP, were significantly affected, with numerous races either postponed, held behind closed doors, or canceled altogether. The respective led to a substantial loss in revenue for organizers, teams, and associated businesses.

 Further, the financial implications of the pandemic were severe for all motorsports stakeholders. Race organizers faced the cancellation of ticket sales, sponsorships, and hospitality packages, resulting in a significant decline in revenue. 

Many teams, especially those relying heavily on race-related income, struggled to cover operational costs and retain staff. Sponsors, facing economic uncertainties, reduced their marketing budgets, impacting the financial stability of teams and events. Additionally, suppliers and service providers, such as track owners, broadcasters, and logistics companies, experienced financial strains due to reduced demand.

Russia- Ukraine War Impact 

The Russia-Ukraine conflict can potentially impact the Global Motorsports Market in various ways. However, it is important to note that the specific impact would depend on the duration, intensity, and geographical extent of the conflict and the geopolitical and economic factors involved. 

If the conflict escalates and leads to disruptions in the supply chain, it could affect the availability and cost of motorsports-related equipment and components. Motorsports teams and manufacturers rely on a global supply chain for parts, technology, and specialized equipment. Any disruption or uncertainty in the region could lead to delays, increased costs, or shortages.

Moreover, motorsports events and teams heavily rely on sponsorships and investments from companies across various industries. A prolonged and highly visible conflict may result in companies hesitating to invest in or sponsor motorsports activities due to geopolitical risks or concerns about negative public perception. 

Further, Geopolitical tensions resulting from the conflict could lead to the international community's imposition of economic sanctions or trade restrictions. Such measures could affect motorsports-related businesses and partnerships between countries involved in the conflict. Sanctions or trade restrictions may limit cross-border collaborations, impede sponsorship agreements, or impact the movement of personnel, teams, and equipment.

By Type

• 4-Wheelers
• 2-Wheelers

By Channel

• Broadcasting
• Ticketing
• Advertiser/Sponsorship
• Race Host Fees
• Merchandizing
• Others

By Race Series

• Formula Racing
• Speedway/Sprint Car
• Hill climb
• Touring Car Racing
• Off-Road Racing
• Rally Racing
• Rallycross
• Stock Car Racing
• Drag Racing
• Kart Racing
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• TVS Motor Company, an Indian two-wheeler manufacturer, announced an agreement to collaborate with PETRONAS, an international energy group, to sponsor TVS Racing, India's first factory racing team, on April 25, 2022.
• EETech, a global participant in technological data, communities and eCommerce within the automation and electronics industries, confirmed their multifaceted relationship with RWR and Team SR2's #51 Indy car on March 30, 2023. The NTT INDYCAR SERIES is broadcast in 223 markets in 142 nations, with 17 events held in North America.
• On March 3, 2022, BWR Motorsports GmbH created cutting-edge technology that allows critical tire Dynamic Mechanical Analysis (DMA) tests to take place on the racecourse. The MOTITE portable tire testing equipment is the appropriate solution for race teams in series such as Formula One and WEC to evaluate tire grip levels and rank the tires on track. 

The program provides a quick grip level output and allows analysis and measurement to be performed immediately on the tire. Its small size and low weight make it easy to handle and carry, which is crucial for the requirements of a global race events.

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 2024

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