Motorsport Market to Grow by USD 10.79 Billion from 2025-2029, Fueled by Sponsor Investments, with Market Evolution Powered by AI - Technavio

NEW YORK, Feb. 7, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global motorsport market size is estimated to grow by USD 10.79 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 4.3%  during the forecast period. Significant investments by sponsors is driving market growth, with a trend towards evolution of formula E. However, increase in cost of insurance with inclusion of advanced electronics and safety systems in racing vehicles  poses a challenge. Key market players include A J Foyt Jr Enterprises Inc., ABT Sportsline GmbH, AF Corse Srl, Andretti Autosport Holding Co. Inc., Avitas Motorsport Design, Bryan Herta Autosport, Dale Coyne Racing, Ferrari NV, Hendrick Motorsports LLC, Honda Motor Co. Ltd., JA Motor Sport, Liberty Media Corp., McLaren Group Ltd., Mercedes Benz Group AG, Red Bull GmbH, Renault SAS, Speedway Motorsports LLC, Stellantis NV, Toyota Motor Corp., and Yamaha Corp..

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Market Driver

The Motorsports Market is experiencing significant trends with the rise of electric vehicles in Formula One and other race series. Millennials are driving the demand for eco-friendly practices and digital motorsports, including virtual racing events and social media engagement. Sponsorships and advertising revenue are shifting towards innovative business models that align with sustainability initiatives, such as hybrid power units and energy recovery systems. Safety features and carbon footprint reduction are top priorities for organizers, leading to recycling initiatives and digital content. Racing events, whether venue or non-venue, are embracing electric technologies and hybrid powertrains to reduce their environmental impact. Renowned circuits and racetracks are exploring sustainability and international competition, while regional and national competition thrives with motorized vehicles and motorcycle racing. Motorsports engineering is focusing on electrification, battery technology, and vehicle performance to meet the demands of competitive events and fan engagement. 

Formula E racing, an innovative motorsport, emerged in response to environmental concerns and the shift towards sustainability. This series features battery-powered vehicles, making it gender-neutral and inclusive for both male and female racers. While attracting a fan base, it faces a challenge in capturing the attention of those who enjoy the traditional engine sounds. However, Formula E offers advantages such as electric motors producing greater torque and power than standard Formula 1 cars. Despite being in its growth phase, it also addresses sound pollution concerns. The future holds potential for Formula E to surpass Formula 1 in terms of performance and fan appeal. 

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• The Motorsports Market faces several challenges in the current business landscape. With the rise of electric vehicles, Formula One and other auto racing series must adapt to eco-friendly practices and electric technologies. Millennials prefer digital experiences, requiring broadcasters and social networking platforms to innovate. Sponsorships and advertising deals are crucial, but safety features and sustainability initiatives are increasingly important. Electric motorsports, including One-Make Series and Touring Car Racing, are gaining popularity. Hybrid power units and Energy Recovery Systems reduce carbon emissions. Recycling initiatives and digital platforms help minimize the industry's environmental impact. Virtual racing events and innovative business models engage fans and generate advertising and ticketing revenue. Motorsports engineering must balance vehicle performance with sustainability concerns. Renowned circuits and racetracks must adapt to these changes while maintaining a strong supporter base.
• The cost of race car insurance continues to rise due to the integration of sophisticated hardware in motorsport vehicles. This hardware includes systems such as Anti-lock Braking Systems (ABS), Electronic Stability Control (ESC) or traction control (TC), turbo and superchargers, radial tires, kinetic energy recovery systems (KERS), dual-clutch gearboxes, and steering wheel-mounted controls. The increasing complexity and advanced technology of these parts result in higher annual costs. Despite this, sponsorship money has consistently grown at a rate of 2.7% to 3.5% year-over-year. This financial influx allows teams to invest more in research and development, resulting in even more advanced machinery.

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Segment Overview 

This motorsport market report extensively covers market segmentation by  

• Type
• F1
• MotoGP
• NASCAR
• Others
• Application
• Venue Racing
• Non-venue Racing
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa
• Wheel Type
• 4-Wheelers
• 2-Wheelers
• Channel
• Broadcasting
• Ticketing
• Advertiser/Sponsorship
• Race Host Fees
• Merchandizing
• Others

1.1 F1-  The Formula One (F1) motorsport market has a rich history, dating back to the European Grand Prix championship in the 1920s and 1930s. F1 evolved from these early championship series with the standardization of rules by the Federation Internationale de l'Automobile (FIA) in the 1940s. Initially, both championship and non-championship series were organized, but the latter was discontinued in 1983 due to escalating competition costs. F1 has consistently attracted sponsors, with cigarette makers being a significant presence until 2001 when the FIA banned their sponsorship. Post-2006, car manufacturers became the primary sponsors, and the value of sponsorship has been increasing annually. However, the sport faced a setback with the decline in viewership due to the implementation of Pay TV and the removal of free video content from YouTube in 2012. This move was not well-received by fans, particularly in the European market, which is the largest for F1. The takeover of F1 by Liberty Media in 2017 is expected to boost viewership by offering more engaging content and leveraging social media platforms. The 2023 F1 calendar includes 23 races, such as the Bahrain Grand Prix in March and the Las Vegas Grand Prix in November, which will contribute significantly to the motorsports industry. These factors are anticipated to drive growth in the F1 segment during the forecast period.

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The Motorsports Market encompasses various forms of competitive racing, including Formula One, rally championships, motorcycle racing, off-road races, and more. With the global shift towards electric vehicles (EVs), motorsports is embracing this trend, with the integration of electric drivetrains and hybrid power units in race cars. Millennials, who value eco-friendly practices and sustainability, are increasingly drawn to motorsports that prioritize these initiatives. Social networking and broadcasting have revolutionized the way fans engage with motorsports, with sponsorship deals and broadcasting rights playing a significant role in team financing. Safety features are a top priority, with continuous advancements in technology ensuring the well-being of drivers and spectators. Motorsports remains a thrilling and competitive industry, with international and regional competitions showcasing the latest advancements in motorized vehicles, battery technology, and energy recovery systems. The focus on sustainability and reducing carbon emissions is a key area of development, with the industry striving to balance the excitement of competitive racing with the need for environmental responsibility.

Market Research Overview

The Motorsports Market is experiencing a significant shift with the integration of electric vehicles and eco-friendly practices. Formula One is leading the charge, introducing electric technologies such as hybrid power units and Energy Recovery Systems. Millennials are driving this change, with a preference for digital motorsports and social networking. Sponsorships and advertising revenue are on the rise as brands seek to engage with this new audience. Safety features are a top priority, with innovative business models and digital content providing new ways for fans to connect. Broadcasting rights are in high demand, with virtual racing events and sustainable initiatives attracting global audiences. Racing series, from One-Make Series to Endurance Racing, are adapting to these changes, with rally championships and motorbike racing also embracing electrification and sustainability. Ticketing revenue, merchandising, and advertising are key sources of income, with venues and non-venue racing offering new opportunities. Carbon footprint and environmental impact are becoming major concerns, with recycling initiatives and sustainable practices becoming the norm. Digital platforms, social media, and automotive investments are transforming the industry, with vehicle performance and event hosting at the forefront. Competitive events, from Touring Car Racing to Stock Car Racing, GT Racing, and Formula Racing, are attracting new sponsors and fans. Off-road races and motorized vehicles are also embracing electrification and sustainability, with a focus on eco-friendly practices and innovative technologies. Motorsports engineering is evolving to meet these challenges, with a renewed focus on environmental sustainability and battery technology. International, regional, and national competition is thriving, with renowned circuits and racetracks attracting fans from around the world. The supporter base is more engaged than ever, with a passion for competitive racing, motorized vehicles, and motorcycle racing. The future of motorsports is electric, sustainable, and digital, with a commitment to reducing carbon emissions and promoting innovative business models.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• F1
• MotoGP
• NASCAR
• Others
• Application
• Venue Racing
• Non-venue Racing
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa
• Wheel Type
• 4-Wheelers
• 2-Wheelers
• Channel
• Broadcasting
• Ticketing
• Advertiser/Sponsorship
• Race Host Fees
• Merchandizing
• Others

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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