IndustryARC

Global Motorsports Market Analysis and

Forecast (2013 2019)

Sponsorship and Advertising Revenues Back on Growth Path

TABLE OF CONTENTS
1. LIST OF TABLES .......................................................................................................9
2. LIST OF FIGURES .................................................................................................. 12
3. MARKET OVERVIEW ........................................................................................... 13
3.1

OVERVIEW ................................................................................ 13
3.1.1

U.S.: NATIONAL ASSOCIATION FOR STOCK CAR

AUTO RACING (NASCAR)................................................ 13

3.1.2

INDYCAR RACING .......................................................... 14

3.2

SCOPE ....................................................................................... 15

3.3

STAKEHOLDERS ........................................................................ 16

4. EXECUTIVE SUMMARY ....................................................................................... 17

4.1.1

GLOBAL MOTORSPORTS ................................................. 17

4.1.2

U.S. NASCAR AND INDYCAR ........................................... 18

5. GLOBAL MOTORSPORTS MARKET FORCES ANALYSIS ............................ 20

5.1

5.2

MARKET DRIVERS ..................................................................... 20

5.1.1

GROWTH OF FORMULA RACING FORMAT ........................ 20

5.1.2

RISING REVENUES IN THE FORMULA ONE RACING

CHAMPIONSHIPS ........................................................... 20

5.1.3

STRONG MARKET GROWTH THROUGH

BROADCASTING AND SOCIAL NETWORKING .................. 20

5.1.4

IMPLEMENTING CHANGES IN THE CHAMPIONSHIP

POINT SYSTEM ............................................................... 21

5.1.5

CAMPAIGNING ............................................................... 22

5.1.6

MARKET GROWTH DUE TO THE SUPPORT OF

CORPORATE SPONSORSHIPS ......................................... 22

5.1.7

RELATED EVENTS TO PROMOTE RACING AND

INCREASE THE ATTENDENCE DURING THE RACING
EVENTS .......................................................................... 22

5.1.8

INTRODUCTION OF ADVANCED TECHNOLOGIES IN

RACING CARS ................................................................ 22

MARKET CONSTRAINTS ............................................................ 23

5.2.1

GLOBAL MEDIA RIGHTS DISTRIBUTION ......................... 23

5.3

5.4

5.2.2

ECONOMIC CONCERNS OVER ORGANIZING OF

MOTORSPORTS EVENTS ................................................. 23

5.2.3

LACK OF TECHNOLOGICAL ADVANCEMENTS IN

NASCAR CARS ................................................................ 23

5.2.4

POOR TELEVISION RATINGS DUE TO DECLINE IN

THE VIEWERS ................................................................ 24

5.2.5

DECLINE IN THE TICKET SALES OF INDYCAR RACING

LEAGUE .......................................................................... 24

MARKET CHALLENGES ............................................................... 24

5.3.1

RISING F1 COSTS........................................................... 24

5.3.2

UNABLE TO LEVERAGE THE VIDEO MARKETING

OPPORTUNITY ............................................................... 24

5.3.3

OUT OF CONTROL TEAM AND CONSTRUCTOR COSTS ....... 25

5.3.4

DECLINE IN THE SPONSORSHIPS DUE TO HIKE IN

THE COST OF NASCAR CARS ........................................... 26

5.3.5

LESS ATTENDANCE DUE TO THE BLEAK ECONOMIC

CONDITIONS.................................................................. 26

5.3.6

INDYCAR MARKET CHALLENGES:- DECLINE IN THE

OVERALL REVENUE DUE TO COMPETITION WITH
OTHER SPORTS .............................................................. 27

FIVE FORCES ANALYSIS............................................................ 27

5.4.1

POWER OF SUPPLIERS ................................................... 27

5.4.2

POWER OF CUSTOMERS.................................................. 27

5.4.3

THREAT OF NEW ENTRANTS ........................................... 27

5.4.4

THREAT OF SUBSTITUTION ............................................ 28

5.4.5

DEGREE OF COMPETITION ............................................. 28

6. MOTORSPORTS MARKET REVENUES BY CHANNELS ............................... 29

6.1

BROADCASTING REVENUE IN MOTORSPORTS MARKET ............. 29

6.1.1

6.2

6.3

U.S.: NASCAR & INDYCAR BROADCASTING REVENUE ............... 32

6.2.1

NASCAR RACING-BROADCASTING DEVELOPMENTS ........ 32

6.2.2

INDYCAR RACING BROADCASTING

DEVELOPMENTS ............................................................. 33

6.2.3

EUROPE ......................................................................... 33

6.2.4

ASIA PACIFIC ................................................................ 35

TICKETING REVENUE IN MOTORSPORTS MARKET .................... 37

6.3.1

6.4

AMERICAS...................................................................... 30

AMERICAS...................................................................... 38

U.S.: NASCAR & INDYCAR TICKETING REVENUE ....................... 38

6.5

6.4.1

NASCAR TICKETING-KEY FACTS ..................................... 39

6.4.2

INDYCAR RACING TICKETING- KEY FACTS ..................... 40

6.4.3

EUROPE ......................................................................... 40

6.4.4

APAC.............................................................................. 41

MERCHANDISING REVENUE IN MOTORSPORTS MARKET........... 43

6.5.1

6.6

6.7

U.S.: NASCAR AND INDYCAR MERCHANDISING REVENUE......... 44

6.6.1

NASCAR- MERCHANDISE KEY FACTS............................... 45

6.6.2

INDYCAR- MERCHANDISE KEY FACTS ............................. 45

6.6.3

EUROPE ......................................................................... 46

6.6.4

ASIA PACIFIC ................................................................ 46

ADVERTISING/SPONSORSHIP REVENUE IN MOTORSPORTS

MARKET .................................................................................... 48
6.7.1

6.8

6.9

AMERICAS...................................................................... 49

ADVERTISING/SPONSORSHIP .................................................. 50
6.8.1

NASCAR RACING-ADVERTISING &SPONSORSHIPS

KEY FACTS ..................................................................... 51

6.8.2

INDYCAR: ADVERTISING &SPONSORSHIPS KEY

FACTS ............................................................................ 51

6.8.3

EUROPE ......................................................................... 51

6.8.4

UNITED KINGDOM.......................................................... 52

6.8.5

FRANCE .......................................................................... 52

6.8.6

GERMANY....................................................................... 53

6.8.7

OTHERS ......................................................................... 53

6.8.8

APAC.............................................................................. 54

RACE HOSTING FEES REVENUE IN MOTORSPORTS MARKET...... 57

6.9.1

6.10

AMERICAS...................................................................... 44

AMERICAS...................................................................... 58

U.S.: NASCAR AND INDYCAR RACE HOSTING FEES ................... 59

6.10.1

EUROPE ......................................................................... 59

6.10.2

APAC.............................................................................. 60

7. MOTORSPORTS MARKET- GEOGRAPHIC ANALYSIS ................................. 61

7.1

AMERICAS ................................................................................ 63
7.1.1

KEY PROMOTIONAL ACTIVITIES ORGANIZED /

UNDERTAKEN BY NASCAR RACING ................................. 65

7.2

ASIA PACIFIC ........................................................................... 66

7.3

EUROPE .................................................................................... 67

8. MARKET ENTROPY .............................................................................................. 69

8.1

NEW PRODUCT LAUNCHES ........................................................ 69

8.2

M&AS, COLLABORATIONS, JVS AND PARTNERSHIPS ................ 71

9. COMPANY PROFILES ........................................................................................... 74

9.1

9.2

9.3

9.4

9.5

9.6

9.7

BRIDGESTONE CORPORATION .................................................. 74

9.1.1

BUSINESS OVERVIEW .................................................... 74

9.1.2

FINANCIALS................................................................... 75

9.1.3

PRODUCTS AND SERVICES ............................................. 75

9.1.4

STRATEGIES................................................................... 75

9.1.5

DEVELOPMENTS ............................................................. 76

CATERHAM CARS ...................................................................... 77

9.2.1

BUSINESS OVERVIEW .................................................... 77

9.2.2

PRODUCTS AND SERVICES ............................................. 77

9.2.3

STRATEGY ...................................................................... 77

9.2.4

DEVELOPMENTS ............................................................. 78

COMMA OIL AND CHEMICALS LTD- COSAN S.A INDUSTRIA

E COMERCIO ............................................................................. 79
9.3.1

BUSINESS OVERVIEW .................................................... 79

9.3.2

FINANCIALS................................................................... 80

9.3.3

PRODUCTS ..................................................................... 80

9.3.4

STRATEGY ...................................................................... 81

9.3.5

DEVELOPMENTS ............................................................. 81

COMPUTACENTER ..................................................................... 82
9.4.1

BUSINESS OVERVIEW .................................................... 82

9.4.2

FINANCIALS................................................................... 83

9.4.3

STRATEGY ...................................................................... 83

FERRARI S.P.A. ......................................................................... 84

9.5.1

BUSINESS OVERVIEW .................................................... 84

9.5.2

PRODUCTS ..................................................................... 84

9.5.3

FINANCIALS................................................................... 85

9.5.4

DEVELOPMENTS ............................................................. 85

FEDERATION INTERNATONALE DE LAUTOMOBILE(FIA) ........... 86

9.6.1

BUSINESS OVERVIEW .................................................... 86

9.6.2

DEVELOPMENTS ............................................................. 87

FORCE INDIA ............................................................................ 88

9.8

9.9

9.10

9.11

9.12

9.13

9.14

9.7.1

BUSINESS OVERVIEW .................................................... 88

9.7.2

FINANCIALS................................................................... 88

9.7.3

PRODUCTS ..................................................................... 88

9.7.4

STRATEGY ...................................................................... 89

9.7.5

DEVELOPMENTS ............................................................. 89

GOODYEAR ............................................................................... 91
9.8.1

BUSINESS OVERVIEW .................................................... 91

9.8.2

PRODUCTS AND SERVICES ............................................. 91

9.8.3

FINANCIALS................................................................... 92

9.8.4

STRATEGY ...................................................................... 93

9.8.5

DEVELOPMENTS ............................................................. 93

LOTUS F1 .................................................................................. 95
9.9.1

BUSINESS OVERVIEW .................................................... 95

9.9.2

PRODUCTS ..................................................................... 95

9.9.3

DEVELOPMENTS ............................................................. 95

MCLAREN AUTOMOTIVE LIMITED ............................................. 97

9.10.1

BUSINESS OVERVIEW .................................................... 97

9.10.2

FINANCIALS................................................................... 98

9.10.3

PRODUCTS ..................................................................... 98

9.10.4

STRATEGY ...................................................................... 99

9.10.5

DEVELOPMENTS ............................................................. 99

MERCEDES-BENZ GMBH .......................................................... 100

9.11.1

BUSINESS OVERVIEW .................................................. 100

9.11.2

FINANCIALS................................................................. 100

9.11.3

PRODUCTS ................................................................... 101

9.11.4

STRATEGY .................................................................... 101

9.11.5

DEVELOPMENTS ........................................................... 102

MICHELIN TYRES PLC. ............................................................ 103

9.12.1

BUSINESS OVERVIEW .................................................. 103

9.12.2

FINACIALS ................................................................... 103

9.12.3

DEVELOPMENT & STRATEGIES ..................................... 106

9.12.4

STRATEGIES................................................................. 107

MOTORS TV............................................................................. 108

9.13.1

BUSINESS OVERVIEW .................................................. 108

9.13.2

PRODUCTS ................................................................... 108

MRF LIMITED .......................................................................... 110

9.15

9.16

9.17

9.18

9.19

9.20

9.14.1

BUSINESS OVERVIEW .................................................. 110

9.14.2

FINANACIALS .............................................................. 111

9.14.3

PRODUCTS & SERVICES................................................ 112

9.14.4

DEVELOPMENTS AND STRATEGIES ............................... 112

PIRELLI .................................................................................. 114

9.15.1

BUSINESS OVERVIEW .................................................. 114

9.15.2

FINANCIALS................................................................. 114

9.15.3

STRATEGY .................................................................... 115

9.15.4

DEVELOPMENT ............................................................. 115

RED BULL GMBH ..................................................................... 117

9.16.1

BUSINESS OVERVIEW .................................................. 117

9.16.2

FINANCIALS................................................................. 117

9.16.3

PRODUCTS ................................................................... 117

9.16.4

STRATEGY .................................................................... 118

9.16.5

DEVELOPMENTS ........................................................... 118

SAUBER .................................................................................. 119

9.17.1

BUSINESS OVERVIEW .................................................. 119

9.17.2

FINANCIALS................................................................. 119

9.17.3

PRODUCTS ................................................................... 119

9.17.4

STRATEGY .................................................................... 120

9.17.5

DEVELOPMENTS ........................................................... 120

TORO ROSSO .......................................................................... 121

9.18.1

BUSINESS OVERVIEW .................................................. 121

9.18.2

FINANCIALS................................................................. 121

9.18.3

PRODUCTS ................................................................... 121

9.18.4

STRATEGY .................................................................... 122

9.18.5

DEVELOPMENTS ........................................................... 122

WILLIAMS .............................................................................. 123

9.19.1

BUSINESS OVERVIEW .................................................. 123

9.19.2

FINANCIALS................................................................. 123

9.19.3

PRODUCTS AND SERVICES ........................................... 124

9.19.4

STRATEGY .................................................................... 124

9.19.5

DEVELOPMENTS ........................................................... 125

YOKOHOMA............................................................................. 126
9.20.1

BUSINESS OVERVIEW .................................................. 126

9.20.2

PRODUCTS ................................................................... 126

9.20.3

FINANCIALS................................................................. 127

9.20.4

STRATEGIES................................................................. 128

9.20.5

DEVELOPMENTS ........................................................... 128

10. APPENDIX .............................................................................................................129

10.1

RESEARCH METHODOLOGY AND SOURCES .............................. 129

10.2

COMPILATION OF EXPERT INSIGHTS...................................... 130

10.3

DISCLAIMER ........................................................................... 131

1. LIST OF TABLES
U

TABLE 1.

U.S. NASCAR AND INDYCAR RACING MARKET REVENUE, 2013-2019

($M)

19

TABLE 2.

NASCARS NATIONAL EVENTS (NORTH AMERICA)

21

TABLE 3.

F1 TEAM BUDGET, BY TEAMS, 2013 ($M)

25

TABLE 4.

BROADCASTING REVENUE IN MOTORSPORTS MARKET, 2013 2019

($M)

29

TABLE 5.

AMERICAS MOTORSPORTS BROADCASTING MARKET, BY COUNTRY,

2013 - 2019 ($M)

30

TABLE 6.

U.S. NASCAR AND INDYCAR RACING BROADCASTING REVENUE, 20132019 ($M)

32

TABLE 7.

EUROPE MOTORSPORTS BROADCASTING MARKET, BY COUNTRY, 2013 2019 ($M)

33

TABLE 8.

APAC BROADCASTING MARKET REVENUE, BY COUNTRY, 2013 2019

($M)

35

TABLE 9.

TICKETING REVENUE IN MOTORSPORTS MARKET, BY REGION, 2013

2019 ($M)

37

TABLE 10.

AMERICAS MOTORSPORT TICKETING REVENUE, BY COUNTRY, 2013

2019 ($M)

38

TABLE 11.

U.S. NASCAR AND INDYCAR RACING TICKETING REVENUE, 2013-2019

($M)

39

TABLE 12.

EUROPE MOTORSPORT TICKETING REVENUE, BY COUNTRY, 2013

2019 ($M)

40

TABLE 13.

APAC MOTORSPORT TICKETING REVENUE, BY COUNTRY, 2013 2019

($M)

41

TABLE 14.

MOTORSPORTS MARKET MERCHANDISING REVENUE, BY REGION, 2013

2019 ($M)

43

TABLE 15.

AMERICAS MOTORSPORT MERCHANDISING REVENUE, BY COUNTRY,

2013 2019 ($M)

44

TABLE 16.

U.S. NASCAR AND INDYCAR RACING MERCHANDISING REVENUE, 20132019 ($M)

45

TABLE 17.

EUROPE MOTORSPORTS MERCHANDISING MARKET REVENUE, BY

COUNTRY, 2013 2019 ($M)

46

TABLE 18.

APAC MOTORSPORTS MERCHANDISING MARKET REVENUE, BY

COUNTRY, 2013 2019 ($M)

47

TABLE 19.

SPONSORSHIP REVENUE IN MOTORSPORTS MARKET, BY REGION, 2013

2019 ($M)

48

TABLE 20.

MOTORSPORTS MARKET SPONSORSHIP REVENUE, BY SPONSORS

INDUSTRY TYPE, 2013 (%)

48

TABLE 21.

AMERICAS MOTORSPORT SPONSORSHIP REVENUE, BY COUNTRY, 2013

2019 ($M)

49

TABLE 22.

U.S. NASCAR AND INDYCAR RACING ADVERTISING& SPONSORSHIPS

REVENUE 2013-2019 ($M)

50

TABLE 23.

EUROPE MOTORSPORTS SPONSORSHIP MARKET REVENUE, BY

COUNTRY, 2013 2019 ($M)

52

TABLE 24.

APAC MOTORSPORT SPONSORSHIP MARKET REVENUE, BY COUNTRY,

2013 2019 ($M)

54

TABLE 25.

RACE HOSTING FEES REVENUE IN MOTORSPORTS MARKET, BY

REGION, 2013 2019 ($M)

57

TABLE 26.

COST OF HOSTING FORMULA ONE GRAND PRIX, 2013 ($M)

57

TABLE 27.

AMERICAS RACE HOSTING FEES IN MOTORSPORTS MARKET, BY

COUNTRY, 2013 2019 ($M)

58

TABLE 28.

U.S. NASCAR AND INDYCAR RACE HOSTING FEE E STIMATION, 20132019 ($M)

59

TABLE 29.

EUROPE RACE HOSTING FEES IN MOTORSPORTS MARKET, BY

COUNTRY, 2013 2019 ($M)

59

TABLE 30.

APAC RACE HOSTING FEES IN MOTORSPORTS MARKET, BY COUNTRY,

2013 2019 ($M)

60

TABLE 31.

GLOBAL MOTORSPORTS MARKET, BY REVENUE CHANNELS, 2013 - 2019

($BN)

61

TABLE 32.

GLOBAL MOTORSPORTS MARKET REVENUE, BY REGION, 2013 2019

($M)

62

TABLE 33.

AMERICAS MOTORSPORTS MARKET REVENUE, BY COUNTRY, 2013

2019 ($M)

63

TABLE 34.

U.S. NASCAR RACING MARKET REVENUE, 2013 2019 ($M)

64

TABLE 35.

U.S. INDYCAR RACING MARKET ESTIMATION, 2013-2019($M)

66

TABLE 36.

APAC MOTORSPORTS MARKET REVENUE, BY COUNTRY, 2013 2019

($M)

66

TABLE 37.

EUROPE MOTORSPORTS MARKET REVENUE, BY COUNTRY, 2013 2019

($M)

67

TABLE 38.

BRIDGESTONE REVENUE, BY BUSINESS SEGMENT (TIRES), 20092013($BN)

75

TABLE 39.

COSAN LUBRICANTS, NET SALES, 2010-2012($M)

80

TABLE 40.

COMPUTACENTER, TOTAL REVENUE, 2011-2013($M)

83

TABLE 41.

TOTAL REVENUE OF GOODYEAR IN NORTH AMERICA, 2011-2013 ($M)

92

TABLE 42.

TOTAL REVENUE OF GOODYEAR IN EUROPE, MIDDLE EAST AND

AFRICA, 2011-2013 ($M)

92

TABLE 43.

TOTAL REVENUE OF GOODYEAR IN LATIN AMERICA, 2011-2013($M)

93

TABLE 44.

TOTAL REVENUE OF GOODYEAR IN ASIA PACIFIC, 2011-2013(IN$M)

93

TABLE 45.

OVERALL SALES: MCLAREN AUTOMOTIVE LTD. 2012-2013 ($M)

98

TABLE 46.

MERCEDES-BENZ GMBH NET REVENUE, 2011-13 ($M)

100

TABLE 47.

MRF LIMITED TOTAL REVENUE 2011-2013 ($M)

111

TABLE 48.

PIRELLI TOTAL REVENUE AND R&D EXPENDITURE, 2011-2013($M)

114

TABLE 49.

WILLIAMS REVENUES (2012-2013) ($M)

123

TABLE 50.

YOKOHAMA TOTAL REVENUE 2011-2013 ($BN)

127

TABLE 51.

YOKOHOMA COMPANY R&D, 2010 2013 ($BN)

127

2. LIST OF FIGURES
FIGURE 1.

U.S. : NASCAR RACING MARKET REVENUE, BY SEGMENT, 2014 & 2019

($M)

14

FIGURE 2.

U.S. INDYCAR RACING MARKET REVENUE, 2014 & 2019 ($M)

15

FIGURE 3.

U.S. NASCAR AND INDYCAR RACING MARKET REVENUE, 2013-2019

($M)

18

FIGURE 4.

FORMAULA ONE TEAM EXPENSES DISTRIBUTION, 2013 (%)

26

FIGURE 5.

GLOBAL MOTORSPORTS BROADCASTING MARKET-BY REGION (%),

2013

29

FIGURE 6.

AMERICAS MOTORSPORTS BROADCASTING MARKET-BY COUNTRY (%),

2013

31

FIGURE 7.

EUROPE MOTORSPORTS BROADCASTING MARKET-BY COUNTRY (%),

2013

34

FIGURE 8.

APAC MOTORSPORTS BROADCASTING MARKET-BY COUNTRY (%), 2013

36

FIGURE 9.

GLOBAL MOTORSPORTS MARKET-BY REVENUE CHANNELS (IN %), 2013

61

FIGURE 10. GLOBAL MOTORSPORTS MARKET-BY REGIONS (IN %), 2013

63

FIGURE 11. AMERICAS MOTORSPORTS MARKET-BY COUNTRY (IN %), 2014

64

FIGURE 12. EUROPE MOTORSPORTS MARKET REVENUE, BY COUNTRY, 2013 (%)

68

FIGURE 13. GLOBAL MOTORSPORTS MARKET PRODUCT LAUNCHES (2011-2014)

69

FIGURE 14. GLOBAL MOTORSPORTS MARKET PRODUCT LAUNCHES BY KEY

PLAYERS (2013-14)

70

FIGURE 15. GLOBAL MOTORSPORTS MARKET M&A'S, COLLABORATIONS, JV'S &

PARTNERSHIPS, BY NO. OF DEVELOPMENTS (2011-14)

71

FIGURE 16. GLOBAL MOTORSPORTS MARKET BY M&A'S, COLLABORATIONS, JV'S

& PARTNERSHIPS

72

FIGURE 17. COMPUTACENTER, TOTAL REVENUE, BY GEOGRAPHY, 2013(%)

83

FIGURE 18. THE REGION WISE NET SALES MARKET SHARE BY IN VALUES ($ 2.7
BN) BREAKDOWN

104

FIGURE 19. SALES BY VALUE IN TONS BREAKDOWN

105

FIGURE 20. COMPANYS SALES BY REGION FOR THE YEAR 2013.

115

FIGURE 21. YOKOHOMA BUSINESS UNIT REVENUE SHARE, 2013 (%)

127

3. MARKET OVERVIEW
3.1

OVERVIEW

Motorsports are competitive events held globally which uses highly optimized and customized
motor vehicles for racing competition. There are different types of motor vehicles which are
used in these competitions such as cars, bikes, go-karts, boats, trucks and snowmobiles and so
on. The most popular of these involve cars and are generally called auto racing or automobile
racing. Auto racing currently is seen in different series such as Formula One, Indycar, GP2,
Formula V6 Asia, Formula Nippon, Formula Three, F2, Formula Palmer Audi, Formula Atlantic
and so on which are collectively categorized under Formula Racing. Other types of racing
include Touring car racing such as the V8 Supercars; Sports car racing like GT1, GT2, GT3 and
GT4, Le Mans; Stock car racing such as NASCAR; Rallying such as WRC, British Rally
Championship, Monte Carlo Rally and so on; drag racing and kart racing.
The focus of this report is primarily on the Formula One Championship and the feeder series
organized by F1 such as GP2 and F2 only. Revenues are collected through various channels such
as content broadcasting, race ticketing collections, official merchandise sold, race hosting fees
paid and sponsorship/advertising on the track side, cars and player uniforms. This report also
focuses on the U.S. NASCAR and INDYCAR racing revenues for the same channels.
3.1.1 U.S.: N ATION AL ASSOCIATION F OR STOCK CAR AUTO RACIN G
(N ASCAR)

Founded in 1948 and headquartered in Daytona Beach, Florida, National Association for Stock
Car Auto Racing (NASCAR) is the largest sanctioning body in auto racing and is the largest
spectator sport in North America. It is the most popular sport in America and also one of the
leading sports brand in the world. This sport event is broadcasted in more than 150 countries in
20 languages that make it a universal brand.
NASCAR has three national racing series, namely:
NASCAR Spirit Cup Series
NASCAR Nationwide Series
National Camping World Truck Series

NASCAR has major markets in Atlanta, Los Angeles, Chicago, North Carolina and
Dallas. NASCAR sprint cup series events contribute to around $xxm - $xxm to the local
economies. This sport event continues for 10 months and has the longest duration as
compared to other major sports events. Ticket prices for NASCAR increases rapidly during
the weekends and is highly impacted by the number of spectators booking these tickets.

ARCA racing series is a launching point to enter NASCAR series. The outstanding performance of
the drivers in ARCA series can eventually enter the NASCAR series. These series are held
throughout the U.S. in NASCAR speedways and raceways across the country.
U.S. NASCAR races are broadcasted on ABC, FOX Sports, ESPN, ESPN2, Turner Network
Television (TNT), SPEED, Motor Racing Network (MRN) Radio, PRN Radio, and SiriusXM
Satellite Radio. The average NASCAR race attendance is around xx spectators.
NASCAR racing annual revenue is estimated to grow at a CAGR of x% from 2013 to 2019. The
longer time duration of 10 months for the auto racing helps it to grow the revenue gradually.
Merchandising is probable to decrease as there are no demand in the market for shirts, hats,
and backpacks.

FIGURE1.

U.S. : NASCAR RACING MARKET REVENUE, BY

SEGMENT, 2014 & 2019 ($M)

3500.0

($m)
Revenue

Race hosting fee

Advertising & Sponsorship
Merchandising
Ticketing
Broadcasting
500.0
0.0

2014

2019

Source: Expert Insights, IndustryARC analysis.

A steep increase in the annual revenue of the NASCAR racing is forecast between 2014
and 2015. The revenue is estimated to grow at a rate of xx% as the broadcasting deals for
FOX Sports and NBC deals will start from 2015 onwards.
3.1.2 IN DYCAR RACING

Founded in 1994 and headquartered in Indianapolis, IndyCar is an American auto racing event.
It is a sanctioning body for championship auto racing. In the U.S., the broadcasting deal of

IndyCar racing is done by channels such as ABC and NBCSN. Radio networks that broadcast
these racing events are Sirius XM satellite radio and the American Forces Radio Network.
Indianapolis 500 Miler Race serves as a center piece for IndyCar. The IndyCar Racing League is
owned by Hulman and Co. It also owns Indianapolis Motor Speedway complex. The average
ticket price of this series is around $xx and during weekends the cost of the tickets may rise
to $xx. Currently, IndyCar racing league series has xx individual sponsors and 22 drivers. There
are approximately 35,000 spectators in the series. Cars designed for IndyCar racing league
are unique and designed especially for oval racing.

FIGURE2.

U.S. INDYCAR RACING MARKET REVENUE, 2014 & 2019

($M)

Race hosting fee

Advertising &Sponsorship
Merchandising

Revenue ($m)

Ticketing
Broadcasting

50.0
0.0

2014

2019

Source: Expert Insights, IndustryARC analysis.

The IndyCar racing is segmented into broadcasting, ticketing, race hosting fee, merchandising,
advertising and sponsorships. A gradual increase in IRL revenues is expected in future, owing
mainly to the increasing revenues of various segments.
3.2

SCOPE

The global motorsports market is analyzed in the report which covers the F1 and feeder series
events like GP2 and F2 across the world. Revenues are analyzed according to the different
revenue channels like sponsorship/advertising, race hosting fees, broadcasting, ticketing and
merchandising. The report describes the Motorsports market by different geographic regions

like Americas, Europe, Asia Pacific and the key countries in these regions. High level analysis
about the individual Motorsports product costs, strategies, future opportunities along with the
business landscape analysis of key market players are discussed in the report.
3.3

STAKEHOLDERS

The following are the key stakeholders in the global motorsports market:

Championship Organizers
Car/Engine Manufacturers
Constructors
Team Owners
Chassis Providers
Tyre Suppliers
Broadcasting Companies
Advertisers
Sponsorship Providers
Race Course Hosts
Maintenance and Accessories Providers
Merchandising Suppliers

4. EXECUTIVE SUMMARY

4.1.1 GLOBAL MOTORSPORTS

The global motorsports market is a $x bn business with revenues accruing from

different channels like sponsorship, advertising, ticketing, merchandising, hosting fees and
broadcasting. The market is expected to grow at a healthy CAGR of around xx% during 2014
2019 to cross $x bn by 2019.

FIGURE3.

GLOBAL MOTORSPORTS MARKET REVENUE, 2013

$ Billion

2019 ($BN)

0
2013

2014

2015

2016

2017

2018

2019

Source: IndustryARC Analysis, Expert Insights

The revenues have a potential to exponentially increase as the number of races and grand prix
conducted expected to increase from the current 19 to around 25 by 2020. The Formula One
Group which is the owner of the F1, F2 and GP2 series is majority owned by the CVC
Capital Partners (xx%), Waddell and Reed (xx%) and Lehman Brothers (xx%). The profits each
year are distributed based on the shareholder structure with around xx% of the profits
going to the constructors based on their championship points. Majority of the
revenues come from promoters or hosts who pay to host the races in their respective
countries. This is followed by the broadcasting revenue paid by TV channels for telecasting
the championship, sponsors for trackside sponsorship and series sponsors, ticketing
revenues and official formula one merchandise sales.
The sport however is facing obstacles like drop in the yearly viewers which was around xx
million previous, a decrease of xx million from 2012; high costs being borne by the constructors

and insufficient returns due to the agreed concorde profit distribution plan; change in rules
with respect to engines, tyre changes and use of KERS etc.
4.1.2 U.S. NASCAR AND INDYCAR

National Association for Stock Car Auto Racing (NASCAR) is the most popular and top level
Sprint Cup Series. It is held twice in a year. S in NASCAR stands for Stock that is standard
conventional cars are used for racing, and races are held on oval tracks. Whereas, IndyCar is an
open-wheel, circuit racing game, and has similar tracks like NASCAR, but it has more even splits
between oval and split courses. IndyCar race cars have open cockpit and wings on the front and
rear side. Both the races are held at Indianapolis Motor Speedways and are alike in nature.
The revenue generated for these races is based on the attendance, broadcasting,
merchandising, advertising & sponsorship, and race hosting fee. Post-recession, however
patrons in the U.S. are not willing to spend on expensive tickets of auto car racing. They are
concentrating more on their savings, job and family. These factors are impacting the ticketing
and merchandising revenue of NASCAR and IndyCar racing series.
The IndyCar racing market is forecast to grow due to the increase in number of races from
16 races in 2013 to xx races by 2019. The ticketing fee for this series is estimated to grow
at a CAGR of xx% from 2013 to 2019. Advertising and sponsorships is the fastest growing
segment with a CAGR of xx% during the forecast period.

FIGURE4.

U.S. NASCAR AND INDYCAR RACING MARKET REVENUE,

2013-2019 ($M)

2019:

IndyCar

2016:
2013:

2019:
2016:
$2,929.5m

2013:
NASCAR

Source: Expert Insights, IndustryARC analysis.

In 2013, NASCAR racing annual revenue was $xx m and it is estimated to grow at a CAGR of xx%
to reach $xx m by 2019. Gradual growth is expected in the NASCAR racing till 2019 due to
the decrease in the merchandising fee, NASCAR racing ticketing fee and the attendance are
estimated to grow only at a CAGR of xx % from 2014 to 2019.
IndyCar racing annual revenue is estimated to grow at a CAGR of xx% from $xx m in 2013 to
$xx m by 2019. Ticketing and attendance of IndyCar racing is estimated to grow rapidly at a
CAGR of xx% from 2014 to 2019.
TABLE 1. U.S. NASCAR AND INDYCAR RACING MARKET REVENUE, 2013-2019 ($M)
U.S.
Market
($m)
NASCAR
racing
IndyCar
racing
Total

2013

2014

2015

2016

2017

2018

2019

Xx

Xx

Xx

Xx

Xx

Xx

Xx

CAGR
(20142019)
X.X%

Xx

Xx

Xx

Xx

Xx

Xx

Xx

X.X%

Xx

Xx

Xx

Xx

Xx

Xx

Xx

X.X%

Source: Expert Insights, IndustryARC Analysis

Total revenue of NASCAR and IndyCar was $xx m in 2013; it is estimated to grow at a CAGR of
2.8% to reach $Xm by 2019 in the U.S. The NASCAR racing is forecast to grow at CAGR of X%
and reach $Xm by 2019 from $xx m in 2013, whereas IndyCar racing is estimated to grow at
a CAGR of X% to reach $xx m by 2019. The ticketing revenue of IndyCar racing series is
projected to grow rapidly as compared to NASCAR racing due to the changes in the ticketing
and merchandising revenue segments.

6. MOTORSPORTS MARKET REVENUES BY CHANNELS

6.1

BROADCASTING REVENUE IN MOTORSPORTS MARKET

The total broadcasting market for the Formula One races and GP2 series was $552m in 2013
which is expected to increase to $Xm by 2014 end. The market is expected to reach $Xbn by
2019 with a CAGR of 14.8%.
TABLE 4. BROADCASTING REVENUE IN MOTORSPORTS MARKET, 2013 2019
($M)
Broadcasting 2013
2014
2015
2016
Americas
Xx
Xx
Xx
Xx
Europe
Xx
Xx
Xx
Xx
APAC
Xx
Xx
Xx
Xx
RoW
Xx
Xx
Xx
Xx
Source: IndustryARC Analysis, Expert Insights

2017
Xx
Xx
Xx
Xx

2018
Xx
Xx
Xx
Xx

2019
Xx
Xx
Xx
Xx

CAGR (2014 - 2019)

X.X%
X.X%
X.X%
X.X%

The granting of broadcasting rights for several countries has generated the highest revenue for
the European countries that constituted a total market of $253.9 in 2013 and will reach $Xm
by 2014. This will be followed by xx region where this will remain at $Xm by 2014 end
whereas Americas will contribute $Xm in 2014 to the global motorsports broadcasting market
for F1 and GP2 series.

FIGURE6.

GLOBAL MOTORSPORTS BROADCASTING MARKET-BY

REGION (%), 2013

Europe

RoW

Source: IndustryARC Analysis, Expert Insights

Overall in the world of formula races broadcasting, Europe is dominant with 46%
share contributed by this region followed by xx and xx with xx% and xx% share

respectively. The provision of broadcasting rights across the world is controlled by Formula One
Management Limited producing World Feed in order to avoid any biased coverage, generally
done by host broadcasters from each country.
6.1.1 AMERICAS

The market for motorsports broadcasting in the Americas region was $xx m in 2013 that will
increase to $128.1m by the end of the year 2014. The whole market in the region is expected
to rise to $x m by 2019 with a CAGR of xx%.
TABLE 5. AMERICAS MOTORSPORTS BROADCASTING MARKET, BY COUNTRY,
2013 - 2019 ($M)
Americas 2013
2014
2015
2016
USA
Xx
Xx
Xx
Xx
Canada
Xx
Xx
Xx
Xx
Brazil
Xx
Xx
Xx
Xx
Others
Xx
Xx
Xx
Xx
Total
Xx
Xx
Xx
Xx
Source: IndustryARC Analysis, Expert Insights

2017
Xx
Xx
Xx
Xx
Xx

2018
Xx
Xx
Xx
Xx
Xx

2019
Xx
Xx
Xx
Xx
Xx

CAGR (2014 - 2019)

X.X%
X.X%
X.X%
X.X%
X.X%

The motorsports broadcasting market in Americas was highest for USA in 2013 followed
by Canada and Brazil with xx% and xx% share respectively. The broadcasting rights
for motorsports in USA in 2014 are being provided to NBC that overtook the market
from Fox Channel in 2013. NBC Sports Group got the rights to broadcast the Formula One
races in USA with following breakdown: NBC will represent four races; CNBC will broadcast
three races while the remaining twelve races will be coming under NBCSN domain.
Additionally, the races can be viewed live on desktop and mobile devices through NBC Sports
Live Extra and NBC Sports Live Extra app.

9.10.4

STRATEGY

In the year 2013, for the first time Mclaren Automotive made both an operating and pretax
profit throughout with its third year of car production. This has symbolized a significant
accomplishment in the global automobile sector for an independent British automobile
manufacturing company. The Group has based on its effective racing skill and expanded to
incorporate a worldwide, superior sports car business. Mclaren Applied Technologies, a gamechanging technology consultancy of McLaren Automotive.
McLaren Automotive has established a global network with over 50 dealerships in key
automotive markets, this has resulted in the world class McLaren Production Centre which is
works together continuously with its technical partners including Akebono, AkzoNobel,
ExxonMobil, Pirelli, SAP and TAG Heuer, continues to invest in R&D to develop the future range
of groundbreaking cars and improve production techniques.
In the year 2013 McLaren Automotive has expanded its geographical presence, with opening of
13 new showrooms and increasing its global network to 50 retailers in 28 international markets.
This included opening four new retailers in China in: Shanghai; Beijing; Guangzhou and
Chengdu. The company plans to open another 20 retailers in the year 2014 and to have over
100 locations in its global network by 2018. McLaren Automotives next model, named as P13 is
going to land in the global market during 2015. The companys motive behind expansion and
new innovative technology has set as new benchmarks in terms of McLarens performance and
efficiency.
9.10.5

DEVELOPMEN TS
Year
Jun 27, 2014

Approach
Product Launch

Jan 23, 2014

Partnership

Source: Company News, Annual Report, SEC Filings

Description
McLaren Reveals New
650S GT3, which will
compete in international
GT3
championships
beginning in 2015.
McLaren
Mercedes
announce
renewed
partnership
with
Santander

9.11

MERCEDES-BENZ GMBH

Headquarters

Mercedesstrae
70327
Germany

137
Stuttgart

Tel: 49-711-17-0
Fax: 49-711-17-22244
Website: www.mercedes-benz.com
9.11.1

BUSINESS OVERVIEW

Founded in 1926 and headquartered at Germany, Mercedes-Benz GmbH is a wholly-owned

division of Daimler AG involved in the manufacturing of automobiles. The company provides its
range of cars for motorsports as part of its AMG brand. Its product portfolio also includes A, B,
CLA-Class 384 C, SLK-Class 357 E, CLS-Class 332 S, CL, SL-Class, SLS, Maybach 71 M, R, GLK, GL
and G-Class series of commercial and personal cars, vans and trucks. The company also
sponsors Formula One teams as part of its business. It has a minority stake of 45.1% in the
Brawn GP Formula One Team. Moreover, the company has sponsorship deal with Petronas and
has rebranded the team as Mercedes GP Petronas Formula One Team. The company operates
through 93 locations worldwide, with around 17 production facilities. As of December 2013, the
company had 96,895 employees.
9.11.2

F INANCIALS

TABLE 46. MERCEDES-BENZ GMBH NET REVENUE, 2011-13 ($M)

2013
Revenue
88,525
R&D Expenditure
5,163.63
Source: Annual Reports, Company News

2012
81,482.5
5,104.88

2011
75,866.2
4,985.9

Mercedes-Benz recorded revenue of $88.5bn in 2013 which was a 4% increase from 2012. The
companys investments in R&D also increased considerably from $5,104.88m in 2012 to
$5,163.63m in 2013. The increased investments have resulted in development of innovative
products. The launch of several new and attractive products had a significant impact on the
companys overall business development throughout the year.
In the first half of 2014, the company demonstrated a 12.8% growth in sales with sale of over
783,520 vehicles including commercial and personal use vehicles. The company sales grew

significantly in spite of volatile market environment in European countries. The company

showed strong increase in growth of up to 14% in the U.K., 19% in Russia, and 61% in Turkey.
Similarly, the companys product sales were around 308,900 units in the U.S. Substantial
growth in sales of cars was observed in the APAC region, including countries such as Japan with
22% growth, India with 27% growth and China with 15% growth.
9.11.3
Product
Type
Sports
Cars

PRODUCTS
Product Name

Application

This series of sport cars offers a blend of design, driving dynamics and
lightweight construction in line with the AMG Lightweight
Performance strategy.
The DTM series is a touring car series with its current model,
Mercedes-Benz AMG C-Coup DTM. It is designed to meet the new and
improved safety concept for 2012, which includes a state-of-the-art
carbon fibre monocoque and a roll cage made of high strength steel,
equipped with fire extinguisher for safety.
SLS AMG GT3
The Mercedes-Benz SLS AMG GT3 is a model athlete with its superior
levels of performance, stability and safety. Developed according to the
GT3 regulations of the International Automobile Federation (FIA), the
SLS AMG GT3 is designed as a customer-sport car for sprint and
endurance races.
E
63
AMG The E 63 AMG Supercar V8 has been produced jointly by AMG, HWA
Supercar V8
and the customer sports team Erebus Motorsport for use in the
Australian V8 Supercar series. The race car is based on the latest model
of the Mercedes-Benz E 63 AMG.
CLA 45 AMG These concept race cars are near-series four-door CLA 45 AMG Racing
Racing Series
Series with high-performance Coup. These are intended for the avidly
followed race series with turbocharged 2-litre cars.
Source: Company News, Annual Report, SEC Filings
9.11.4

Mercedes AMG
Petronas
Silver
Arrows
Mercedes-Benz
AMG DTM car

STRATEGY

Product Portfolio Expansion: The Company plans to expand its AMG line and position its brand
line in new market segments. For instance, the company has launched 3 new models in its AMG
product range, namely, A 45 AMG, a four door coupe and a SUV. The company is strengthening
its presence by developing its current product portfolio through research and innovations, and
expanding into new markets. The company also aims to become a pioneer in the development
of active and passive safety systems for its cars.
Geographic Presence: The Company plans to further expand its presence in Asia Pacific region,
China, in particular. To achieve this, the company has significantly expanded its dealer network
in the year 2013. For instance, in March 2013, the company formed a 51:49 joint venture with

10.3

DISCLAIMER

IndustryARC was started by a group of young, passionate professionals along with extensively
experienced industry veterans across various business segments. Our focus and expertise is
mainly in the field of analytics, market research and consulting. Our singular goal is to provide
accurate and affordable research to our clients.
Our research team has expertise in diverse fields like Automotive, Chemicals, Consumer
Product & Services, Electronics, Food & Beverages, Healthcare etc., However diverse the
expertise maybe, everyone in our team shares one common trait - we love data and we love
providing solutions to clients using that data even more! Seeing your business flourish based on
our solutions and strategy is what we love the most!
IndustryARC publishes more than 30 reports on an annual basis in the mentioned Industries.
Our reports are in-depth and high quality reports that can help decision makers frame better
strategies for their business requirements. These reports can be further customized as per your
needs.
The reports sold by IndustryARC are limited publications containing valuable market
information provided to a select group of customers in response to orders.
Our customers acknowledge and agree that any report bought from IndustryARC is for their
own internal use and not for general publication or disclosure to third parties.
Our reports or part of the reports, information contained in the report, cannot be shared or
resold to any other third party.
Disclosure to third parties, usage of data in a public document, article or blog by the customer
can be done with prior permission taken from IndustryARC.

THE ARC ADVANTAGE

An analytical model lies at the core of our process, ensuring logical consistency throughout
our research. We complement the model with secondary data and interviews with industry
experts to reflect the latest trends. With our final expert validation, we provide you with
only the most accurate and actionable intelligence.

THE ARC PROCESS

Analytical
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market
4. Build the
Analytical Model
ANALYTICAL MODEL

Base Method

1. Get a topdown estimate of

the market
2. Follow it up
with a bottom-up
estimate of the
market
3. Check
forconsistency
and new growth
factors that are
relevant over the
next 10 Years

4. Build the Base

model
BASE MODEL

Consolidation
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market.
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market.
4. Build the
Consolidated
Model

Delphi
Verification
1. Verify the
findings of the
model with
experts from
across the value
chain
2. Verify the
findings with
players across
small and large
enterprises
3. Tweak the
model and add
new factors
4. Finalize the
ARC Model

CONSOLIDATED MODEL

ARC MODEL

ABOUT US
IndustryARC was started by a group of young, passionate professionals along with extensively
experienced industry veterans across various business segments. Our focus and expertise is
mainly in the field of analytics, market research and consulting. Our singular goal is to provide
accurate and affordable research to our clients.
Our research team has expertise in diverse fields like Automotive, Chemicals,Consumer
Product & Services, Electronics, Food & Beverages, Healthcare etc., However diverse the
expertise maybe, everyone in our team shares one common trait - we love data and we love
providing solutions to clients using that data even more! Seeing your business flourish based
on our solutions and strategy is what we love the most!
IndustryARC publishes more than 30 reports on an annual basis in the mentioned Industries.
Our reports are in-depth and high quality reports that can help decision makers frame better
strategies for their business requirements. These reports can be further customized as per your
needs.
Disclaimer:

The reports sold by IndustryARC are limited publications containing valuable market
information provided to a select group of customers in response to orders.

Our customers acknowledge and agree that any report bought from IndustryARC is for
their own internal use and not for general publication or disclosure to third parties.

Our reports or part of the reports, information contained in the report, cannot be
shared or resold to any other third party.

Disclosure to third parties, usage of data in a public document, article or blog by the
customer can be done with prior permission taken from IndustryARC.

For information regarding permissions and sales, contact:

sales@industryarc.com | sanjay.matthews@industryarc.com