The Global Motorsport Products Market size is projected to be worth USD 35.39 billion by 2030, registering a CAGR of 6.45% during the forecast period (2022–2030).
Motorsports refer to sporting event, which involves the use of motor vehicles, either for racing or non-racing. The most popular of these involve cars and are generally called auto racing or automobile racing. Auto racing currently is promoted through different series such as Formula One (F1), GP2, Formula V6 Asia, Formula Nippon, Formula Three, F2, Formula Palmer Audi, and Formula Atlantic, to name a few.
With the continuous spread of the novel coronavirus across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The regional impacts of the pandemic outbreak are highly variable, but as it spreads, the status in the harder hit areas provides a glimpse of what may be witnessed soon. China saw a 79% drop in the automotive market in February 2020.
The restrictions on movement and promoting social distancing to slow the spread of the disease mean that transport, travel, and labor supply are today directly affected in ways they were not during the financial crisis in 2008-09. Whole sectors of national economies have been shut down, including restaurants, hotels, tourism, non-essential retail trade, and significant shares of manufacturing hence completely hampering the growth of the global motorsport products market. However, with the relaxation of lockdown, the global motorsport market is expected to see significant growth.
Motorsport has reached more than 194 countries and is also set to increase as the connectivity of modern technology that continues to grow in the modern world. The global motorsport products market has been tracked based on various parameters which include revenue generation by various channels including broadcasting, ticketing, advertiser/sponsorship, race host fees, and merchandising. This can be done by collecting information regarding the type of race series that occurred in various countries and by circuit/facility analysis of where the race series is held. One of the most important factors impacting the motorsports market is the revenue generated from the participation fees which are paid by the participating players. There are several factors that affect the revenue generation of motorsport companies. One of the major factors for tracking revenue generation is revenue generated from the broadcasters such as Fox Sports (Australia), ORF (Austria), Play Sports (Belgium), and, others. The major factor impacting the motorsport company’s revenue generation is ticketing. The amount of revenue generated from the sale of tickets significantly depends on the popularity of the particular racing series and racing circuit/facility in the particular region or country.
The increasing popularity of motorsports activities is due to factors such as the audience is more willing to pay money to witness motorsport entertainment and the rising disposable income of people across the globe. The investment made by merchandisers or fashion brands are playing a key role in the revenue generation of the motorsport organizers. This makes the motorsport products, a critical aspect in ensuring successful sports car and racing tournaments, which is expected to result in the growth of the global motorsport products market during the forecast period.
The maintenance of motorsport vehicles and drivers is expensive and has complex operations as it features a larger number of hardware made from raw materials such as aluminium, steel, magnesium, copper, plastics, carbon fibers, and rubber and also has other active electronic components. Such vehicle also has sensors, video cameras, and other accessories that are used for analyzing the vehicle & driver behavior. The operational cost of motorsport products market depends on various factors such as advanced technology and vehicle type. The working operations of motorsport products are expensive owing to the high investment and repair & maintenance costs involved in the generation of advanced technology. Furthermore, the components and materials used in the motorsport products market must be selected as per international standards such as the American Society of Mechanical Engineers (ASME) and Society of Automotive Engineers (SAE). This leads to an increase in the cost of high-quality raw materials and components used in the manufacturing of motorsport products.
Nowadays, there is a technology involved in racing cars and motorsport events, for example, in a Formula 1 car, almost everything is controlled with the aid of technology, electronically, but if we look back 30 years, almost everything worked in a mechanical way. This evolution in F1 (the most famous way of motorsport worldwide) has been followed by the automotive industry, where the differences are like day and night. With the beginning of the third Formula E series an additional support series called Roborace has taken place on the tracks currently used by Formula E. The goal of Roborace is to provide the first racing series for autonomous vehicles. The teams that take part in this competition will develop only the software for the provided autonomous cars (Robocars).
An artificial intelligence (AI) algorithm can be used as a normal function in motorsport cars that overtakes the tasks of the driver. AI can be used as a conventional ADAS function, which supports the driver while driving manually. AI functions for predicting both the behavior of the own vehicle and other vehicles and objects during racing events. This means AI helps with the detection of the environment (objects, road course, etc.) and also for the detection of road conditions during motorsport events. Furthermore, the increase in awareness and adoption of advanced electronics in motorsport vehicles drives the use of motorsport products in the global market. Thus, technological advancements are expected to create opportunities for the global motorsport products market during the forecast period.
Motorsport requires high performance racing cars. In the design and development stage, the dimensions (aerodynamics), technology, working conditions, vehicle type, and applications, in terms of event/race, are analyzed to design and develop the motorsport product effectively. In the design stage, the overall design, sub-systems and components, material type, aerodynamic shape, are determined according to the product's application, design standards, and the specific vehicle requirements. Motorsport products market require various raw materials such as, aluminium, steel, magnesium, copper, plastics, carbon fibres, rubber, and other electronic components. The raw materials used in motorsport product manufacturing depend on the type of product along with its intended applications. The motorsport product manufacturing market is an extremely raw material intensive market. The raw material composition also depends on geographic conditions.
Motorsport products are manufactured in multiple models and variants, depending on the customer requirements and race/event. In the manufacturing stage, after the necessary raw materials are procured, the manufacturers produce the product according to the finalized design and the requirements of the end users. After the manufacturing process is completed, the finished motorsport product undergoes certain quality checks to ensure that they comply with the required parameters, such as performance standards, efficiency, and precision in critical work conditions, before being sent to the end users.
The distribution of motorsport products is mainly carried out through a network of authorized and local distributors, dealers, retailers, and exporters worldwide. Many leading motorsport product manufacturers also form strategic alliances with local dealers and product manufacturers to conform to the rules and regulations pertaining to operations in multiple countries. The end users of motorsport products market are race drivers, vehicle owners, automotive OEMs & aftermarket players, and multiple fleet operators. The motorsport products are involved in the group of competitive sporting events which primarily involve the use of motorised vehicles, whether for racing or non-racing competition.
Based on racing type:
Rallying, formula racing, touring car racing, sport car racing, production car racing, stock car racing, and others are the segments based on the racing type of the Global Motorsport Products Market. The sport car racing segment is expected to have the highest CAGR and to dominate the market share during the forecast period. Sports car racing is a type of auto racing, in which, as evident from its name, “sports cars,” which have two seats and enclosed wheels are used. They may be purpose-built or related to road-going sports cars. Various major car manufacturers such as Ferrari, Porsche, Jaguar, Mercedes-Benz, and BMW produce cars that compete in races.
The regions are classified as North America, Europe, Asia-Pacific, and Rest of the World. North America holds a significant share of the market due to the rising racing events within the region and the preference of customers toward modification of cars for enhanced performance. For instance, the high popularity of racing series such as Formula 3 Americas, NASCAR, and the US Pro Kart Series are some of the most popular series in the US. Activities such as off-roading and rally racing are quite popular in this region. Furthermore, the high per capita disposable income and spending power of people of this region are the key factors driving the market growth. The customers spend a large amount of their income on car modification to keep their vehicle efficient and attractive. Additionally, a growing preference for aftermarket services in North America is anticipated to drive the regional market. Sports car racing is very famous in North America, and also, stock racing is mainly found in the US, Canada, Mexico. Furthermore, the presence of governing bodies such as NASCAR (National Association for Stock Car Auto Racing) and NHRA (National Hot Road Association) are supporting the growth of the regional market.
Europe is expected to provide several growth opportunities for the market players during the forecast period due to the increasing number of backers and the presence of the world’s most mainstream racetracks driving the development of the motorsport products market in this region. Furthermore, some famous racing championships, such as European Rally Championship (ERC) and GT World Challenge Europe, are acting as growth factors for the region. These events receive significant support from high-end car manufacturers, most of which have originated from European countries.
The global motorsport products market is characterized by the presence of many local, regional, and global vendors. The market is highly competitive, with all the players continually competing to gain a larger market share. High competition, rapid advances in technology, frequent changes in government policies, and stringent environmental regulations are some of the critical factors that could restrain the motorsport products market growth. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. Vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
List of Key Companies covered in the report:
The Global Motorsport Products Market is segmented based on racing type and region in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views and predict the emerging and fast-growing segments, regions, and countries with potential of development in the Global Motorsport Products Market.
By racing type:
|Market Size||2030: USD 35.39 Billion|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Racing Type|
|Geographies Covered||North America, Europe, Asia-Pacific, Rest of the World|
|Key Vendors||Volkswagen AG (Germany), Toyota Motor Corporation (Japan), Daimler AG (Germany), Ferrari N.V. (Italy), Porsche (Germany), Jaguar Land Rover Automotive Plc (UK), ABT Sportsline GmbH (Germany), Citroën (France), Red Bull GmbH (Austria), McLaren Group (UK), Groupe PSA (France), Subaru Corporation (Japan), JA Motorsport (India), Toyota Gazoo Racing (Japan), Subaru World Rally Team (UK)|
|Key Market Opportunities||Technology Advancements|
|Key Market Drivers||Increasing popularity of motorsport Scope of revenue generation through ticketing and broadcasting|
The Global Motorsport Products Market would register a growth of ~6.45% during the forecast period.
High maintenance coat is a key restraining factor for the Global Motorsport Products Market
North America would enjoy the upper hand in the Global Motorsport Products Market