KTM had established themselves as a major force in off-road motorcycle sport before deciding to enter MotoGP. In September 2014, KTM's motorsport director Pit Beirer publicly announced their intention to enter the premier class for 2017. Development of the RC16, a V4-engined machine built around KTM's distinctive steel trellis frame chassis, began in earnest shortly afterwards.
In October 2015, the RC16 turned its first laps at the Red Bull Ring with Alex Hofmann as test rider. The development programme expanded to use circuits including Jerez, Misano, Mugello and Brno, with test riders Mika Kallio, Randy De Puniet, Karel Abraham and Thomas Lüthi contributing data. The RC16 was publicly presented before the 2016 Austrian Grand Prix, with Kallio and Hofmann demonstrating the machine.
The team made its competitive MotoGP debut at the 2017 Qatar Grand Prix with Pol Espargaró and Bradley Smith, qualifying twenty-second and twenty-third before finishing sixteenth and seventeenth. Their first championship points came at the next round in Argentina. Progress was steady throughout the year, with Espargaró recording the team's first top-ten finish at the Czech Republic Grand Prix in Brno.
Expectations rose for 2018 as the RC16's development programme matured. Espargaró scored points consistently across the season's opening races. At the 2018 Valencian Community Grand Prix, the team secured their first premier-class podium when Espargaró finished on the rostrum in the wet conditions at Valencia, a landmark result for both KTM and their Red Bull partner.
Johann Zarco replaced Smith for 2019, though the partnership proved difficult. In August 2019, Zarco announced he would not continue with KTM for 2020, and in September the team confirmed he would not take part in the remaining six rounds, with Kallio stepping in as replacement.
On 9 August 2020, Brad Binder delivered KTM their first MotoGP victory at the Czech Grand Prix in Brno — the first premier-class win for both the Austrian manufacturer and for Binder himself. It was also KTM's first dry-weather podium. The achievement validated the team's approach and marked a significant shift from their status as a developing force to genuine race winners.
KTM's progress has been supported by the KTM GP Academy, a structured talent development programme designed to identify riders from junior series such as the Red Bull MotoGP Rookies Cup and nurture them through Moto3 and Moto2 toward a factory MotoGP seat. The Academy has operated in cooperation with Red Bull KTM Ajo and Red Bull KTM Tech3. Riders including Brad Binder, Miguel Oliveira, Remy Gardner and Pedro Acosta have progressed through the system. Acosta in particular won two titles across just three seasons of Grand Prix competition before reaching MotoGP.
Red Bull KTM Factory Racing represents an unusually vertically integrated effort within the MotoGP paddock, with KTM producing the frame, engine and many components in-house at their Mattighofen headquarters in Austria. Their steel trellis frame configuration distinguishes the RC16 from the aluminium twin-spar frames used by most rival machines. The partnership with Red Bull as principal sponsor has provided substantial resources and global marketing reach since the team's foundation.
Red Bull KTM Factory Racing entered MotoGP as newcomers and within three seasons had reached the podium, and within four had won a race outright. Their structured academy approach and willingness to invest in long-term development has produced a competitive factory team capable of race wins and positioned KTM as a genuine force at motorcycle racing's highest level.