Sim Racing Industry Analysis

Goals

To provide an overview of the current state of the sim racing industry, its trajectory over the last 15 months (since the start of Covid), and some sense of market opportunity size.

Early Findings

Data Availability

  • We have provided a summary of our initial round of research on the data availability surrounding the required information about the sim racing industry below:
    • The initial round of research indicates that data availability is adequate on key sim racing software, including iRacing, Assetto Corsa, Assetto Corsa Competizione, Automobilista 2, RaceRoom Experience, and rFactor 2, concerning their user base, revenue models, and valuation.
    • The initial round of research indicates that data availability is adequate concerning providing an overview of the sim racing utility software space, which includes companies such as Crew Chief, SimHub, zDashboard, and online subscription services like Virtual Racing School (VRS).
    • The initial round of research indicates that data availability is adequate concerning building a list of sim racing leagues and competitions, including a sense of each league's scale, and the professionalism and engagement levels.
    • Initial research indicates that the data availability for the size of sim racing social media audience size, the volume of sim racing content creators, and a ballpark sizing on the number of Facebook groups dedicated to sim racing and directly related subjects (hardware, specific software titles, etc) is low. However, data availability on relevant sim racing Facebook and Twitter accounts, YouTube channels, Twitch channels, Discord communities, and their audience size and engagement levels are adequate in the public domain.
    • Initial research indicates that there is low data availability on a pre-compiled case study concerning the linkage between real-world racing and sim racing, and a proof that the growth for sim racing is in part being fueled by the real-world motorsports community and audiences. However, this can be crafted using pieces of information available in the public domain.
    • The initial round of research indicates that there is adequate data availability in the public domain concerning hardware creators for the sim racing space, including key companies such as Fanatec, Logitech, Next Level Racing, Thrustmaster, and Heusinkveld, and other smaller companies operating in this space with a huge variety of quality and price points.

Helpful Findings

  • According to Motorsport Network, in a few years, 100% of the F1 grid is expected to compete on the sim racing stage.
  • Jimmy Broadbent is said to be the face of the largest Sim-Racing based channel on YouTube.
  • Jimmy has accumulated over half a million subscribers and is the go-to content creator when it comes to racing simulators.
  • In 2018, Jimmy added commentating to his list of achievements after being hired to do the English coverage for the first-ever FIA-backed Sim Racing Championships for Grand Turismo.
  • He was "the star of “Jimmy Meets” – a content series that ran alongside the championships, as he toured some of the most iconic locations in racing ahead of the World Final."
  • In April 2019, he became the winner of the Buckmore Park 24 hour carting race (Clubman class) with his team.
  • A list of the top YouTube sim racing channels is provided herein.

Summary

  • We focused our initial hour of research on providing some helpful findings about the sim racing space.
  • For a deeper dive into the required information about the space, we recommend further research. Details on our recommended research paths have been provided in our proposals below.

Research proposal:

Only the project owner can select the next research path.
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