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2023

U.S. E-motorsport Market

U.S. E-motorsport Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Streaming Type, Device Type and Revenue Stream : Opportunity Analysis and Industry Forecast, 2021-2031.

IC : Software and Services

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Author's: Apoorv Priyadarshi & Shrawanty Yadav | Onkar Sumant
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U.S. E-motorsport Market Statistics, 2031

The U.S. E-motorsport market was valued at $285.12 million in 2021, and is projected to reach at $1,064.45 million by 2031, growing at a CAGR of 14.3% from 2021 to 2031.

E-motorsports is an online gaming platform, that includes F1 Formula racing, car racing, and electronic motorsports game. E-motorsports gaming platform provides users with the ability to enter various online races and championships suited to their location and skill level. E-motorsports games usually consist of skilled or professional gamers competing against one another for a cash prize. E-motorsports is a customer-centric business offering a mix of professional products, turnkey solutions, and a world class esports racing league. Factors such as major shift toward digital transformation, rise in cloud-based services, technological advancement in e-motorsports gaming platform and ongoing modernization of digital gaming such as augmented & virtual (AR/VR) gaming event that drive heavy investment in e-motorsports in U.S., which in turn, foster the growth of the market. In addition, increase in use of smartphones and internet penetration drive the growth of the U.S. e-motorsports analysis.

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E-motorsports market forecast has increased in the U.S. in the last few years due to adoption of new cutting-edge technologies in various organizations and rise in competition to create new milestone in gaming and online sports sector. In addition, surge in demand for next generation online gaming service among enterprises fuels the growth of the market. Furthermore, increase in need for interactive, efficient, and cost-effective virtual gaming service along with emerging technology such as augmented reality and artificial intelligence is expected to provide lucrative opportunities for the expansion of the U.S. e-motorsports market during the forecast period. However, increase in prices of the services offered by key vendors to gain more profit is expected to hamper the growth of the U.S. e-motorsports market.

Furthermore, increase in awareness of video games and growth in popularity of U.S. e-motorsports market growth. However, lack of standardization and threats such as betting and gambling may restrict the U.S. e-motorsport market share. Furthermore, long-term investment initiatives taken by the key players and surge in number of tournament & event with huge prize are expected to create lucrative opportunity for the U.S. e-motorsports market trends during the forecast period.

Depending on streaming type, the on-demand segment dominated the U.S. e-motorsports market size in 2021 and is expected to continue this trend during the forecast period. The growth of the segment is attributed to numerous benefits provided by streaming type segment such as high quality of gaming, ease of customizing sports as per the requirement of players, and high security of gaming ID. However, the live segment is expected to witness highest growth in the U.S. e-motorsports market, owing to rise in adoption of real-time streaming of e-motorsports due to its cost-effective and easy to broadcast operation. The live e-motorsports game event provides real-time game and tournament broadcasting for audience such as traditional gaming and sports. Such factors are anticipated to fuel the growth of the e-motorsports market across the U.S.              

On the basis of device type, smart phone dominated the U.S. E-motorsport market size in 2021, owing to the current scenario, mobile phones particularly smartphones have a wide range of connectivity features for enabling mobile gaming online, including infrared, Bluetooth, Wi-Fi, and 3G. These technologies facilitate wireless multiplayer games with two or more players. Smartphone games are usually downloaded from an app store as well as from mobile operator’s portals. However, smart TV is expected to witness significant growth during the forecast period, owing to advanced technologies such as augmented reality, virtual reality, artificial intelligence, and 3-dimensional view, which attract the attention of hardcore gamers in U.S. for playing game on smart TV. Smart TVs provide large screen for the gamer, which provides nice view for e-motorsports matches. Key players in the TV manufacturing are taking initiative in manufacturing of gaming specified television sets, which will boost the U.S. e-motorsports market.                   

Segment Review

For the purpose of analysis, the U.S. e-motorsports market is segmented on the basis of component, streaming type, device type, and revenue stream. The report provides information on various component including platform and service. In addition, it is categorized by streaming type into live and on demand. Furthermore, it outlines the details of the device type such as smart phone, smart TV, desktop, laptop, and tablets, and gaming console. It provides information on various revenue stream including media rights, game publisher fee, sponsorship, digital advertisement, tickets, and merchandise.

The key players operating in U.S. E-motorsport industry include AMR GP Limited, Competition Company GMBH, Formula One World Championship Limited, IRacing.com Motorsport Simulations, LLC., Logitech, McLaren Group, Motorsport Games, Red Bull Racing Ltd, Team Redline, and Veloce Ltd. Furthermore, it highlights the strategies of the key players to improve market share and sustain competition.

Top Impacting Factors  

Technological Advancements in Gaming Sector

As technology progressed, the excitement and appeal of gaming only increased with more visual stimulus, creativity, and satisfaction. Moreover, technology has refined online gaming in recent years to the extent that many games have blurred the lines between reality and fantasy. Technological advancements in U.S. such as augmented reality & virtual reality (AR/VR) and artificial intelligence (AI) have made gaming more interesting and addictive. The evolution of technologies is rapidly increasing the adoption of e-motorsports games as they offer unique experience and provide immense satisfaction to the gamers. These benefits drive the U.S. e-motorsports market growth.

Increase in Use of Smartphones and Internet Penetration

The increase in smartphone penetration and improved internet access in the country have raised expectations for mobile gaming. High-end smartphones are now easily available, thus resulting in a sharp increase in the number of mobile gamers. Moreover, the advancements in smartphones such as wide screen and high RAM integration have resulted in more developments of mobile based esports. In addition, more smartphone users and improvements in mobile internet infrastructure such as 5G network deployments and mobile phone hardware are also contributing to the growth of the market.

Digital Capabilities

E-Motorsport (or ‘Simulation Racing’) has become increasingly popular in recent years. In its simplest sense, it allows you to experience the thrill of competitive motorsport without ever leaving your home. There are many different games and platforms you can use to compete on. However, the FIA standard is the PS4 game Gran Turismo Sport. People tend to enter E-Motorsport from two areas. Firstly, there are motorsport competitors who want to stay sharp in the off-season or find digital motorsport more affordable. Secondly, there are those who enjoy driving simulation games and wish to step up to the next level. In essence, all you need to get started is the correct game and platform (PC, Xbox, PS4), a good internet connection, and suitable hardware. This will vary according to budget, but as a minimum, sim racers will have a steering wheel and pedal set as this allows greater control and feel than a handheld controller. Over time, racers may add custom seats, better gear leavers, additional monitors, and upgraded steering wheels.

Key Benefits for Stakeholders

  • The study provides an in-depth analysis of the U.S. E-motorsport market along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the U.S. E-motorsport market size is provided in the report.
  • The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the U.S. E-motorsport industry.
  • The quantitative analysis of the U.S. E-motorsport market for the period 2021–2031 is provided to determine the U.S. E-motorsport market potential.

U.S. E-motorsport Market Report Highlights

Aspects Details
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By Component
  • Platform
  • Services
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By Streaming Type
  • On-demand
  • Live
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By Device Type
  • Smart Phone
  • Smart TV
  • Desktop-Laptop-Tablets
  • Gaming Console
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By Revenue Stream
  • Sponsorship
  • Game Publisher Fee
  • Media Rights
  • Digital Advertisement
  • Tickets and Merchandise
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By Key Market Players
  • AMR GP Limited
  • Competition Company GMBH
  • Formula One World Championship Limited
  • IRacing.com Motorsport Simulations, LLC.
  • Logitech
  • McLaren Group
  • Motorsport Games
  • Red Bull Racing Ltd
  • Team Redline
  • Veloce Ltd.

Analyst Review

According to several interviews conducted with top level CEO of U.S. e-motorsports service providers, the adoption of e-motorsports has increased over time to deliver reliable & consistent gamming solution and online service for their subscribers. As the new generation of people which grew up with playing sports on gamming-console, PC and smartphones have increases the demand for e-motorsports, which is expected to provide lucrative opportunities for the market growth during the forecast period. Most of key players are investing heavily on e-motorsports and drone racing, which combine technology, physical action, and interesting options for e-motorsports. Drone racing is one of several emerging e-sports that combine technology, competition, and new methods for content distribution and audience participation. Professional online gaming is the other emerging e-motorsports, whereby competitors can now earn a seven-figure salary, playing popular online games in high-profile tournaments.

The CXOs further added that the market is expected to witness significant growth in the future due to increase in use of e-motorsports among the end users due to emerging adoption of high-speed internet. The U.S. e-motorsports market is highly concentrated, and companies are focused on leveraging new technologies for offering online gaming solutions to meet the emerging requirements of the user. Moreover, increase in investments in online gaming in developed as well as emerging countries boosts the adoption of e-motorsports market in the U.S.

Furthermore, the adoption of IoT (Internet of Things) based devices, digital transformation initiative, technological advancements such as augmented reality (AR) and increasing demand for online gaming are expected to provide ample growth opportunities for U.S. e-motorsports market.

Moreover, U.S. has the largest number of internet subscriber, which is beneficial for online gaming and live streaming of gaming, which provide the real time gaming experience. Such factor is anticipated to fuel the growth of U.S. e-motorsports in the upcoming years. In addition, digital transformation, and initiative of partnership in e-motorsports service taken by top key players in the country are expected to fuel the growth of the market. For instance, in February 2022, U.S. Oracle and Red Bull Racing enhanced their partnership and introduced a new Team name, Oracle Red Bull Racing, as well as the Team’s new car for the upcoming season, the RB18. Through this partnership, Team is expected to expand use of Oracle Cloud Infrastructure to further improve race strategy, engine development, and projects within Red Bull Advanced Technologies.

The presence of a large number of providers in the U.S. e-motorsports market increases the competition between key players. Therefore, U.S. e-motorsports service providers are differentiating themselves from competitors and driving revenue growth by incorporating new digital business technologies such as artificial intelligence, machine learning, and virtual reality into their offerings to gain a competitive lead and retain their market position.

The market is considerably concentrated with major players consuming significant market share. The degree of concentration is projected to remain the same during the forecast period. The vendors operating in the market have taken several initiatives such as new product launches and partnership to stay competitive in the market and to strengthen their foothold in the market.

Author Name(s) : Apoorv Priyadarshi & Shrawanty Yadav | Onkar Sumant

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U.S. E-motorsport Market

Opportunity Analysis and Industry Forecast, 2021-2031.