By SEMA News Editors
PRI released its first-ever market research report, showing that track-use motorsports parts accounted for more than $8 billion in sales in the United States in 2023 among many other racing market data points. The report includes key industry trends and sales metrics and is available to PRI Business and Individual members for free as a membership benefit.
The inaugural "2024 State of the Racing Market Report" is PRI's first step towards providing industry-specific data and insights that will help members grow their businesses and stay competitive. Produced by PRI Market Research, updated reports will be released annually in the first quarter of the calendar year.
"As the industry continues to evolve, businesses need to rely on facts to understand where the market currently stands and where it's headed," said PRI President Michael Good. "This study takes the guesswork out for our members, helping them to identify new opportunities in an easy-to-read and comprehensive download."
The report finds that "businesses across the racing ecosystem are seeing positive signs that motorsports is getting back to its usual rhythm." According to the report, 76% of racing businesses view the racing market as either stable or on the rise. While companies saw strong sales growth following the reopening of tracks and resumption of races post-pandemic due to pent-up demand, the growth slowed slightly in 2023 amidst recession and inflation concerns. Still, overall sales were largely positive or remained stable for those selling racing parts.
Over the past year, 47% of racing parts resellers saw sales growth and 51% anticipate their sales will grow over the next year. Similarly, 32% of racing parts manufacturers experienced sales growth and 50% expect their sales to grow over the next year.
"The racing segment continues to be a strong piece of the specialty-equipment market and a revenue opportunity for many businesses," added Good. "Whether you are a CEO, salesperson or race-service provider, this report can help you stay ahead of the curve and navigate the dynamic motorsports landscape."
The most common racing products sold are engine, intake/fuel/exhaust, and suspension/brakes/steering/chassis parts. The percentage of racing businesses that sell directly to teams is 59%; however, many also have built partnerships with distributors and other resellers to help expand their audience.
Many race tracks, racing series and racing associations feel that the industry is still recovering from the pandemic but are more optimistic about the outlook for racing; 68% of tracks expect to run as many, or more, races in 2024 than a typical year. The average number of television viewers of the 2024 Indianapolis 500 was 5.34 million, up 8% from 2023, which is a good indicator that racing continues to see strong popularity at high levels. Still, 54% of tracks report feeling that there is a way to go to reach full occupancy in the stands compared to pre-pandemic levels in 2019.
Since 1986, PRI has served tens of thousands of racing entrepreneurs as the key source for industry trends, merchandising ideas, new products, business strategies and more. In addition to offering data on how the racing industry buys and sells parts for racing vehicles, the report includes insight into industry trends, track updates, an overview of racing types and more.
PRI Business and Individual members can download the new "2024 State of the Racing Market Report" by using their individual/personal login to access their member portal at PerformanceRacing.com. Once logged in, the report can be found by clicking "My Benefits."