Electric Motorsport: Introduction
- Electric motorsport is a category of motorsport that consists of racing of electric-powered vehicles, either in all-electric series or in open-series against vehicles with different power trains. Very early in the history of automobiles, electric cars held several performance records over internal combustion engine cars, such as land speed records, but fell behind in performance during the first decade of the 20th century. With the renaissance of electric vehicles during the early 21st century, notable electric-only racing series have been developed for both cars and motorcycles, including, for example, the FIA Formula E Championship. In other racing events, electric vehicles are competing alongside combustion engine vehicles, for example in the Isle of Man TT and the Pikes Peak International Hill Climb, and in some cases winning outright.
Key Drivers of Global Electric Motorsport Market
- Government authorities and policymakers are the major drivers for the electrification of motorsport. National, as well as international agencies, are actively participating in promoting the design, development, manufacturing, and adoption of electric motorsports.
- Several countries have implemented financial incentives, including tax credits, rebates, and registration fee reductions, designed to promote EV adoption. Rebates can be claimed after purchase, while tax credits are claimed when filing income taxes. Many states also offer non-cash incentives for electric vehicles, such as carpool lane access in California and free municipal parking. In a similar instance, India in its financial budget for 2020 announced a reduction of Goods and Services Tax (GST) on electric vehicles from 12% to 5%. These monetary benefits are attracting a greater number of people to opt for electric vehicles instead of conventional I.C engine vehicles.
- International agencies and forums are playing a pivotal role in the exchange of technologies and standardization of electric vehicles across continents. For instance, the Electric Vehicles Initiative (EVI) is a multi-government policy forum dedicated to accelerating the introduction and adoption of electric vehicles. Under the guidance of this forum, a multi-government fleet declaration was signed in November 2016 by eight countries, including Canada, China, France, Japan, Norway, Sweden, the U.K., and the U.S to strengthen the impact of national goals to increase the share of electric vehicles in their government fleets. These supportive policies and initiatives by governments and international organizations are fueling the global electric motorsport market.
- For instance, Jaguar is spearheading the sustainability movement with its very own competition for electric cars, known as the I-Pace e-Trophy. The race, made exclusively for Jaguar I-Pace vehicles, has proved to be an invaluable source of technical feedback for their team of drivers and mechanics. So far, based on insight from the races, Jaguar has been able to improve the EV battery management of their cars and tweak the performance of their all-wheel-drive feature. The project is living proof that green racing can be beneficial to automotive companies both as a source of publicity and as a proving ground for groundbreaking concepts.
Technological Transformation and Emergence of New Business Models to Offer Significant Opportunities:
- Consumer expectations of further technology improvements and new electric motorsport models pose lucrative growth opportunities for market players
- Currently, consumer expectations from electric motorsport are rapidly evolving, and significant improvements in technology and a wider variety of electric motorsport models available in the market are poised to cater to these evolving customer demands. Automakers such as Volkswagen AG, Daimler AG, and many others have announced their plans to introduce a series of electric cars in the market in coming years that feature state-of-the-art ADAS, infotainment, and other technologies that enhance the overall driving experience.
- Automotive suppliers are developing innovative solutions that consume less power to optimize the performance of the battery and extend the driving range of electric vehicles
- Electric vehicle manufacturers such as Tesla are exploring newer revenue sources other than just selling electric vehicles. The company is investing in developing a charging station network, which is generating additional income for the company.
- In-flow of investment from government agencies and private players to accelerate the electrification of vehicle fleets, develop infrastructure and educate the workforce is anticipated to further boost the global EV market in the future.
Challenges in Electric Motorsport Market:
- Despite its growing popularity, the motorsport industry faces many challenges which hinder the market. Primarily, the prevailing cost of investment is large enough to create uncertainty regarding the return on investment among new/potential participants. Additionally, the high cost of production, repair, and insurance of motor vehicles induces concerns over profitability in participating firms, thereby, restricting further investments. Similarly, the risk of fatal crashes demotivates new drivers to venture into the electric motor sporting world. Finally, electric motorsport, when compared to other sports such as football, does not attract billions of viewers. Even the most popular electric motorsport – F1 attracts followers from a relatively small niche of people around the world. Therefore, the market expansion is relatively slower than in other sports.
Europe to Hold Significant Share of Global Electric Motorsport Market
- Europe is the most prominent market for the electric motorsport industry. Presence of leading motor companies is the driving factor in the region. Italy is the leading country in Europe with domination in both the motor vehicle and tire sectors. Germany and UK follow up with leading motor companies participating in motorsport events. France, Monaco, Belgium, and Portugal are the top nations with F1-MotoGP hosting infrastructure.
- North America is the second-largest market for the electric motorsport industry. Apart from F1 and MotoGP, NASCAR, drag racing, off-road racing, truck racing, and motorcycle stunt riding are prominent electric motorsport in the US, Canada, and Mexico.
- Asia Pacific market is rapidly expanding in terms of broadcasting and viewership. China, India, and South Korea are expected to witness the fastest growth due to the rapid development of the automobile, tire, and motorsport industries in the region.
Key Players Operating in Global Electric Motorsport Market
The global electric motorsport market is consolidated with top manufacturers across the global market. A few of the key players operating in the global electric motorsport market are:
- Auto Rennen India
- Electric Motorsport, Inc.
- Kreisel Electric.
- Integral Powertrain Ltd.
- Northway Motorsport
- Zytek Automotive Ltd.
Global Electric Motorsport Market: Research Scope
Global Electric Motorsport Market, by Category
- Open Category
- Pikes Peak Hill Climb
- Isle of Man TT
- Paris-Dakar Rally
- All-electric Series
- Formula E
- Moto E
- Extreme E
Global Electric Motorsport Market, by Vehicle Type
Global Electric Motorsport Market, by Torque (Nm)
- Less than 400
- 400 – 800
- 800 – 1200
- More than 1200
Global Electric Motorsport Market, by Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Russia & CIS
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
