Motorsports Market

Increasing Popularity of Motorsports Events

The increasing reach of broadcasting platforms has been a major contributor to the growth of motorsports events. For instance, ESPN reported that the 2024 Formula 1 World Championship season drew nearly 30 million viewers across its platforms in the U.S., with the average viewership per race for this season reaching 1.12 million on ESPN, ESPN2, and ABC, reflecting an increase compared to 2023.

According to International Journal of Multidisciplinary Research and Analysis (IJMCRA), the organization of sporting events is seen to attract tourists hence contributing to economy. Events involving motorsports exhibit a similar tendency. The graph below shows the increase in visitors from 2018 to 2023 as a result of the hosting of some motorsport events in different nations. The COVID-19 epidemic caused a decrease in the number of visitors in 2020, however the statistics for 2021, 2022, and 2023 revealed a rise in the number of visitors for motorsport events, suggesting that these events are becoming more and more popular.

The Global Motorsports Market Industry is characterized by diverse revenue streams that contribute to its resilience and growth. Ticket sales, merchandise, broadcasting rights, and sponsorships collectively enhance the financial landscape of the industry. The rise of e-sports and virtual racing has also opened new avenues for revenue generation, appealing to younger audiences. This diversification is essential as it mitigates risks associated with reliance on a single income source. As the market evolves, the ability to adapt and innovate in revenue generation will likely play a critical role in sustaining growth and attracting new stakeholders.

The Global Motorsports Market Industry is witnessing an expansion of events across various regions, enhancing its global footprint. New racing circuits and competitions are being established in emerging markets, such as Asia and the Middle East, which are becoming increasingly attractive to fans and sponsors alike. This expansion not only diversifies the audience but also creates opportunities for local economies through tourism and job creation. The growing interest in motorsports in these regions suggests a promising future for the industry, as it seeks to capitalize on untapped markets and foster a more inclusive motorsports culture.

Technological innovations play a pivotal role in shaping the Global Motorsports Market Industry. The incorporation of advanced materials, data analytics, and simulation technologies enhances vehicle performance and safety. For instance, the use of lightweight composites and hybrid powertrains not only improves speed but also aligns with global sustainability goals. Furthermore, the development of real-time telemetry systems allows teams to optimize strategies during races. These advancements not only attract manufacturers and sponsors but also engage fans through enhanced viewing experiences. As technology continues to evolve, it is likely to drive further investment and interest in the motorsports sector.

The Global Motorsports Market Industry experiences a notable surge in popularity, driven by increasing viewership and participation rates. Major events such as Formula 1 and MotoGP attract millions of fans worldwide, contributing to a projected market value of 15.5 USD Billion in 2024. This growing interest is further fueled by the rise of digital platforms, which enhance accessibility and engagement. The integration of social media and streaming services allows fans to connect with their favorite teams and drivers, thereby expanding the audience base. As motorsports continue to captivate diverse demographics, the industry is poised for sustained growth.

The Global Motorsports Market Industry benefits from an influx of sponsorship and investment, which is crucial for its expansion. Major corporations recognize the marketing potential of motorsports, leading to lucrative partnerships with teams and events. This trend is evidenced by the increasing number of sponsors in high-profile racing series, contributing to the industry's projected growth to 38.9 USD Billion by 2035. Additionally, investments in grassroots motorsports initiatives help cultivate new talent and expand the fan base. As brands seek to enhance their visibility and connect with consumers, the financial support for motorsports is expected to continue rising.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. North America consists of the U.S, Canada, and Mexico.

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.

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. The US motorsport market is majorly driven by the high popularity of motorsports in the region. In March 2024, Nascar race at the Circuit of The Americas (COTA) posted an average viewership of 3.31 million, a six per cent increase on last year’s race.   

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, which drive 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 the high-end car manufacturers, most of which have originated from the European countries.

Formula One (F1) also has huge fanbase in Europe and thus sports channels prefer to win broadcasting rights for F1. With emergence of OTT platforms, these motorsports are gaining added traction. In May 2024, F1 and Viaplay- a Swedish video streaming platform, signed five-year extension to media rights deal in the Netherlands and Nordics. Last year, there were approximately 12 million unique television viewers, an increase of 35% in the Netherlands. There was also around 5.5 million unique viewers across Denmark, Finland, Norway and Sweden.

FIGURE 3: MOTORSPORTS MARKET SIZE BY REGION 2023 VS 2032

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, China, Japan, and India.

The key players operating in the Motorsports Market Include Ferrari, Mclaren Racing, Aston Martin, Platinium Group S.A.M., Grandstand Motor Sports, Hendrick Motorsports, Speedway Motorsports, LLC, Dale Coyne Racing, Toyota Motor Sales, U.S.A., Inc., NASCAR Media Group, among others. The Motorsports Market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a strong reach globally as well as local market along with diverse product portfolios. Companies such as Ferrari, Mclaren Racing, Aston Martin dominate the Motorsports Market due to brand reputation, product differentiation, financial stability, and diversified regional presence.

The market is dynamic and competitive due to the presence of several international, regional, and local players that offer a comprehensive range of motorsports services. The market is highly competitive, with all the players continually competing to gain a larger market share. Companies across regions are implementing several growth initiatives to capitalize on the growing Motorsports Market.