Motorsport Market to Grow by USD 10.54 Billion (2024-2028), Boosted by Sponsor Investments, Report Highlights How AI is Driving Market Transformation - Technavio

NEW YORK, Jan. 21, 2025 -- Report with the AI impact on market trends - The global motorsport market size is estimated to grow by USD 10.54 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.36% 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 ABT Sportsline GmbH, A J Foyt Jr Enterprises Inc., AF Corse Srl, Andretti Autosport Holding Co. Inc., Avitas Motorsport Design, Bryan Herta Autosport, Dale Coyne Racing, EXOR N.V., 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

Formula E racing, an emerging motorsport market, focuses on battery-powered vehicles that are gender neutral, allowing both men and women to compete. While attracting fans, the lack of engine noise is a challenge. However, this sport addresses environmental concerns and sound pollution. Anticipated advantages include more torque and power from electric motors, contributing to market growth. Formula E's zero emissions and innovations in efficient engines, longer battery life, and aerodynamic chassis will positively impact the global motorsport market during the forecast period.

The Motorsports Market is thriving with competitive events featuring motorized vehicles, including motorcycle racing and off-road races. Electrification is a major trend, with the focus on sustainable battery technology and electric drivetrains. Environmental sustainability is a top priority, with eco-friendly practices and electric vehicles gaining popularity. International, regional, and national competitions continue to draw large supporter bases. Motorsports engineering advances, addressing environmental concerns and enhancing safety features. Renowned circuits and racetracks host Formula One, touring car racing, and One-Make Series. Millennials engage through broadcasting, social networking, sponsorships, and digital motorsports. Electric technologies and race series offer exciting opportunities for innovation. 

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Market Challenges

• The global motorsport market faces a significant challenge with the rising cost of race car insurance due to the integration of advanced electronics and safety systems. These systems, including anti-lock braking systems (ABS), electronic stability controls (ESC), traction control (TC), turbo and superchargers, radial tires, kinetic energy recovery systems (KERS), dual-clutch gearboxes, and steering wheel-mounted controls, are becoming increasingly complex and costly. While sponsorship money has been consistently increasing, with annual growth ranging between 2.7% and 3.5%, this additional expenditure on research and development (R&D) results in more technologically advanced machines. However, the increasing prices of these components and the inherent risks of the sport create challenges for insurance providers, leading to an anticipated negative impact on the growth of the global motorsport market during the forecast period.
• In the motorsport market, various racing categories such as Stock Car Racing, GT Racing, Endurance Racing, Rally Racing, Formula Racing, Motorbike Racing present unique challenges. Ticketing, advertiser interests, and fan engagement require innovative solutions. Virtual racing events are on the rise, addressing environmental concerns like carbon footprint and climate change. Sustainability initiatives include hybrid power units, energy recovery systems, and recycling initiatives. Digital platforms, social media, and automotive investments shape the future of racing. Racing events, whether at venues or non-venue, generate revenue through advertising, ticketing, merchandising, and broadcasting rights. Electric motorsports and hybrid technologies are driving the industry forward, with virtual reality and augmented reality enhancing fan experience. Data analytics, sponsorship and advertising, and audience engagement are key areas of focus for teams and organizations.

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Segment Overview

This motorsport market report extensively covers market segmentation by

1. Type
   • 1.1 F1
   • 1.2 MotoGP
   • 1.3 NASCAR
   • 1.4 Others
2. Application
   • 2.1 Venue racing
   • 2.2 Non-venue racing
3. Geography
   • 3.1 Europe
   • 3.2 North America
   • 3.3 APAC
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 F1- The Formula One (F1) motorsport market boasts an unparalleled legacy, dating back to the European Grand Prix championship in the 1920s and 1930s. F1 evolved into its current form following FIA rule standardization in the late 1940s. Initially, both championship series and non-championship races were organized, but the latter ceased in 1983 due to escalating competition costs. F1 has consistently attracted numerous sponsors, with car manufacturers becoming a significant presence post-2006, following the FIA's ban on tobacco sponsorship in 2001. However, the sport experienced a decline in viewership after the introduction of Pay TV and the removal of free video content from YouTube in the early 2010s. The takeover of F1 by Liberty Media in 2017 and the addition of new races, such as the Bahrain Grand Prix in April 2025 and the Las Vegas Grand Prix in November 2024, are expected to boost the market by attracting more viewers and increasing sponsorship value. The European market, being the largest F1 market, will significantly benefit from these developments, contributing to the growth of the motorsports industry.

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Research Analysis

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), the motorsports industry is embracing this trend, leading to the development of electric race cars and motorcycles. Millennials are driving the demand for eco-friendly practices and sustainability initiatives in motorsports. Broadcasting and social networking have transformed the way fans engage with their favorite races and drivers. Sponsorships and sponsorship deals remain a significant revenue source, with companies seeking to associate themselves with the excitement and innovation of motorsports. Safety features are a top priority, with continuous advancements in technology ensuring the wellbeing of drivers and spectators. The integration of hybrid power units, Energy Recovery Systems, and electrification in motorsports is reducing carbon emissions, making motorized vehicles more sustainable. The future of motorsports lies in its ability to balance competitive racing with environmental sustainability, using battery technology, electric drivetrains, and the pursuit of international and regional competition.

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. Broadcasting and sponsorships remain key revenue streams, with innovative business models and digital content attracting advertisers and fan engagement. Safety features are a top priority, with a focus on sustainability initiatives such as recycling and carbon emissions reduction. Race series including One-Make Series, Touring Car Racing, Stock Car Racing, GT Racing, Endurance Racing, Rally Racing, Formula Racing, Motorbike Racing, and various types of racing events continue to evolve, incorporating electric motorsports, hybrid technologies, and virtual racing events. Venue and non-venue racing, motorized vehicles, motorcycle racing, off-road races, and electrification are also gaining popularity. Motorsports engineering and international, regional, and national competition continue to push the boundaries of vehicle performance and environmental sustainability. Renowned circuits and racetracks cater to a supporter base that values competitive racing and sustainable practices.

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

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.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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