Motorsport Sponsorship Market- By Type (Track, Race Series, Race Team), By Race Series, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Motorsports Sponsorship Market Overview

The Motorsports Sponsorship Market size is set to grow at a CAGR of 6.9% during the forecast period 2024-2030 to reach $5.9 Billion by 2030. Growth in formula racing format for electric vehicles, rising revenues in Formula One racing championship, growing popularity of motorsports among millennial through broadcasting and social networking platform have boosted the motorsports market. Factors such as increase in number of races, trackside advertising and sponsorships are driving the motorsports market forward. Huge investments are done by the sponsors as these sports events are an ideal platform for the companies to promote their products to improve brand awareness and media coverage. This racing entertainment attracts spectators and generates revenue for their products. Increasing safety features in racing vehicles, increasing promotional effectiveness coupled with rising investments by sponsors across the globe would propel the market growth during the forecast period. Changes in the motorsport regulations such as limitations on the number of combustion engines, turbos and MGU-Hs and others as a key focus towards the driver safety, introduction of Apps, streaming platforms and improved graphics for revolutionizing fans experience and other key trends in the motorsport industry will impact the growth of the market in the coming future.

Motorsport sponsorship has evolved significantly, driven by the increasing global reach and popularity of racing events such as Formula 1, NASCAR, and endurance racing series like Le Mans. A major trend shaping this sector is the shift towards digital and social media platforms for brand visibility. Sponsorship deals now emphasize not only trackside advertising but also digital content, social media engagement, and virtual experiences to reach a wider audience globally. Brands are increasingly looking for data-driven ROI, demanding more sophisticated analytics to measure sponsorship effectiveness and engagement levels among fans.

Market Snapshot :-

Report Coverage

The report: “Motorsports Industry Outlook – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Motorsports industry.
By Type: League Organizers and Promoters, Race teams, Track Owners/Runners.
By Race Series: One-Make Series (Porsche Supercup, Ferrari Challenge, Lamborghini Super Trofeo, Others), Touring Car Racing (World Touring Car Championship, BTCC, DTM, Others), Stock Car Racing (NASCAR, ARCA Menards Series, Others), GT Racing (GT Series World Challenge(Blacpain GT Series), Super GT, Intercontinental GT Challenge, Others), Endurance Racing (World Endurance Championship (WEC), IMSA WeatherTech SportsCar Championship, 24H Series, Others), Rally and Off-Road Racing (World Rally Championship (WRC), European Rally Championship (ERC), Dakar Rally, SCORE International Off-Road Racing, Extreme E, NHRA Drag Racing Series, Others), Formula Racing (Formula 1, Formula 2, Formula E, IndyCar, Others), Motorbike Racing (MotoGP, WorldSBK, FIM EWC, SuperMotoCross Championship (MX), British SuperBikes (BSB), MotoCross World Championship (MXGP), MotoAmerica Superbike Championship, Others.
By Geography: North America (U.S., Canada, Mexico), South America (Brazil, Argentina, Others), APAC (India, Japan, China, South Korea, Malaysia, Australia, Singapore and Others), Europe (Germany, France, UK, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, and Others), Middle East, Africa (GCC, Other Middle East, Africa).

Key Takeaways

• The players of this market are taking more strategic steps for the expansion of the market through new product launches, acquisitions, investments and others; and to showcase their engineering capabilities, which in turn affects the brand value of the organizations, thereby driving the growth of global Motorsports Sponsorship Market during the forecast period 2024-2030.
• In December 2023, Mahindra & Mahindra Ltd. (M&M Ltd.), one of India’s leading automotive companies, announced that its overall auto sales for the month of November 2023 stood at 70,576 vehicles, a growth of 21%, including exports. In the utility vehicles segment, Mahindra sold 39,981 vehicles in the domestic market, a growth of 32% and overall, 40,764 vehicles, including exports. The domestic sales for commercial vehicles stood at 22,211.

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Motorsports Industry Outlook - by Race Series

The formula Racing segment held the major market share of 53.50% in 2023, with a CAGR of around 7.9% during the forecast period 2024-2030. The growth is mainly attributed to a rising partnership of brands and television rights holders, the emergence of new sporting power, a greater fusion of sports and entertainment, rising popularity of live sports on OTT and social media platforms. In March 2020, the Renault F1 team and DP world have signed an agreement making DP World the global logistics partner and the title partner of the team which will become the Renault DP World F1 team. The partnership helps explore opportunities to increase the efficiency of their supply chain including improved powertrain and engine development. In April 2020, Disney revealed plans to acquire Formula 1 Racing from Liberty Media for over $4 billion. Liberty Media has sold off its ownership of the sport after just three years at the helm. This acquisition was done with a vision to rebuild the program layout as a part of making the sport more entertaining. Furthermore, Touring Car Racing was analyzed to witness the highest growth with a CAGR of 15.9% during 2024-2030. The growing adoption of aggressive digital strategy in world touring car championships such as the introduction of a new interactive show with WTCC drivers on each event exclusively for digital broadcasting is welcoming a larger audience and recruiting new generation of fans. Factors like the incorporation of new program formats are analyzed to fuel the market growth in future years.

Motorsports Sponsorship Market Segment Analysis - Geography

North America dominated the Motorsports Sponsorship Market, with a market share of 38.89% in 2023 and estimated to reach with a CAGR of 6.5% during the forecast period 2024-2030 due to its vibrant motorsports culture and an extensive infrastructure that supports a diverse range of racing events. The region is home to some of the most renowned and prominent racing series, including NASCAR and IndyCar, which are widely popular and draw large crowds. Major racing facilities, such as Daytona International Speedway and the Indianapolis Motor Speedway, provide cutting-edge settings for high-profile events. These venues not only cater to ardent fans, but they also function as technological innovation and advancement hubs in racing technology. The North American Motorsports Sponsorship Market benefits from a thriving ecosystem of teams, sponsors, and vehicle manufacturers who actively participate in and contribute to the industry's development. The region's commitment to innovation, safety standards, and fan involvement via digital platforms solidifies its role as a driving factor behind the region's sustained success.

Motorsports Sponsorship Market Drivers

Technological Innocation:

One major driver in motorsport sponsorship trends is technological innovation. As racing teams and events adopt advanced technologies like virtual reality (VR) experiences, augmented reality (AR) activations, and real-time data analytics, sponsors are drawn to these platforms for their potential to enhance fan engagement and brand exposure. Technological advancements also enable sponsors to integrate their products more seamlessly into the racing experience, creating immersive and interactive opportunities for fans and consumers alike.

Adoption of new business models is one of the major factors creating opportunities for the Motorsports Sponsorship Market:

Amidst the Covid-19 breakout, many motorsports organizations were adopting many new business models including organizing virtual racing events to overcome, a difficult situation where fans were not able to enjoy these events like before, which in turn will create more opportunities for the Motorsports Sponsorship Market during the forecast period 2024-2030. TVS Motor Company, an Indian two-wheeler manufacturer, announced an agreement to collaborate with PETRONAS, an international energy group, to sponsor TVS Racing, India's first factory racing team, on April 25, 2022. The implementation of innovative business models is critical to the growth of the Motorsports Sponsorship Market. By embracing new and diverse techniques, industry stakeholders can open up new revenue streams beyond traditional sources such as ticket sales and sponsorships. Motorsports organisations might explore collaborations with technology companies, gaming platforms, and digital content makers to gain a larger audience. Incorporating virtual reality experiences, developing mobile applications, and using social media platforms, for example, can greatly increase fan involvement. These technology developments not only serve existing fans but also attract new enthusiasts, adding to the overall growth of the racing industry.

Motorsports Sponsorship Market Challenges

Rising Focus on Cost Management is impeding the growth of the market:

A significant challenge in motorsport sponsorship is cost management. The high costs associated with sponsoring top-tier racing teams or securing prominent trackside advertising space can be prohibitive for many brands, especially amid economic uncertainties and fluctuating sponsorship budgets. Finding a balance between cost and return on investment (ROI) remains a key challenge, as sponsors seek measurable outcomes and sustainable partnerships that justify their investment in motorsport sponsorship. Effective cost management strategies, such as strategic partnerships, targeted activations, and leveraging digital platforms, are essential to navigate this challenge and ensure long-term viability in the competitive motorsport sponsorship landscape.

Motorsports Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Motorsports Sponsorship Market. The key players in the Motorsports Sponsorship Market include

1. Mercedes 
2. Ferrari 
3. Red Bull
4. Mclaren Racing 
5. Alpine 
6. Aston Martin
7. Alfa Romeo/Alfa Corse 
8.  Hendrick Motorsports 
9. Ducati 
10. Joe Gibbs Racing

Recent Developments

• On December 2023, Joe Gibbs Racing (JGR) announced today their driver and crew chief lineup for the 2024 NASCAR Xfinity Series season. The team will field four Toyota GR Supras – two with full-time drivers and two with a rotating schedule of part-time drivers. The lineup will be headlined by Sheldon Creed driving the No. 18 GR Supra and Chandler Smith piloting the No. 81 GR Supra. Aric Almirola and John Hunter Nemechek will split driving duties of the team’s No. 20 entry while the No. 19 GR Supra will be driven by Ryan Truex, William Sawalich, Joe Graf Jr., and Taylor Gray.
• On January 2023, Mercedes-Benz finishes 2022 with strong Top-End and Battery Electric Vehicle deliveries. The world's most valuable luxury automotive brand finished 2022 with a strong final quarter, delivering 540,800 Mercedes-Benz Passenger Cars (+17%) to customers and achieving a rise in Top-End and Battery Electric Vehicle (BEV) sales. The October to December period marked the best quarter in 2022 for Top-End vehicles with sales up 14% thanks to robust demand in most regions, despite ongoing COVID measures, semiconductor, and logistic bottlenecks throughout the year.
• On November 2023, Aston Martin illuminates the FORMULA 1 HEINEKEN SILVER LAS VEGAS GRAND PRIX with largest ever F1® race weekend marketing presence. Partnership with Las Vegas Grand Prix sees Aston Martin models DBX707 and DB12 star on Sphere’s Exosphere – the largest LED screen on Earth. Las Vegas Grand Prix is Aston Martin’s most significant race weekend celebration to date, with DBX707 to be unleashed on the Las Vegas Strip Circuit™.