Potential Launch of F1 Series across New Countries and Renewed Demand from Viewers to Make Global Motorsports into a $5 billion Market by 2019

Motorsports are contests which involve racing of motorized vehicles such as cars, motor cycles, trucks, boats and others. Auto racing or car racing has been the most popular outdoor competitive event in motorsports across the globe. Based on the type of automobile used, auto racing can be categorized into Formula racing, touring car racing, sports car racing, Kart racing and many more. Among the different forms of auto racing, formula racing has been the most prevalent and universal sporting event. The focus of this Global Motorsports Market report from IndustryARC is primarily on the F1 series which includes Formula One Championship and GP2 feeder series which are considered as the highest class of single-seat auto racing.

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The Global Motorsports report covers the market analysis of F1 and its feeder series. Revenue generation for these events is analyzed by type of revenue channel such as sponsorship/advertising, race hosting fees, broadcasting, ticketing and merchandising. The report also provides an analysis of motorsports market for different regions such as Americas, Europe and Asia-Pacific and the country-level analysis of these regions. Furthermore, major drivers, constraints and challenges for the market are also covered in the report.

Global Motorsports Market, By Revenue Channels, 2014



Source: IndustryARC Analysis, Experts Insights

Global Motorsports Market is estimated to reach $5 billion by 2019 at a healthy CAGR of 9.6%. The revenue generated from these events is estimated to grow exponentially as the number of races and Grand Prix are estimated to increase from 19 to 25 by 2020. Majority of the revenue is contributed by ticketing channels wherein the revenue depends on the audience strength for a particular racing event. Some of the other revenue channels include broadcasting fee paid by TV channels, sponsorship from event and trackside sponsors and merchandize sales. Driven by the increase in racing formats, number of races, advertisements and sponsorships, the revenue from racing events will outpour in the coming years.

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However, media rights distribution in the European region has been a major constraint for the market as T.V. viewership has declined. Rising costs of F1 racing stands as a major challenge hindering the revenues from the events. Over the years, with the rising costs of F1 racing; there has been an increase in the prices of tickets which is restricting the reach of motorsports in certain countries. Degree of competition among the teams, sponsors, broadcasters and other stakeholders of the market have been high due to the increase in events on a global scale. Key players in the market include Ferrari S.p.A (Italy), Mercedes Benz GmbH (Italy), and McLaren Automotive Ltd (U.K.) and Red bull GmbH (Austria).

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