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 L’AUTOMOBILE(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 ($M)
19
TABLE 2.
NASCAR’S NATIONAL EVENTS (NORTH AMERICA)
21
TABLE 3.
F1 TEAM BUDGET, BY TEAMS, 2013 ($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. COMPANY’S 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)
3
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 Sport’s 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 Automotive’s next model, named as P13 is going to land in the global market during 2015. The company’s motive behind expansion and new innovative technology has set as new benchmarks in terms of McLaren’s 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
Mercedesstraße 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 company’s 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 company’s 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 company’s 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-Coupé 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 Coupé. 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.
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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.
•
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•
Our reports or part of the reports, information contained in the report, cannot be shared or resold to any other third party.
•
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