Powersports Market

• Growing trend of recreational sports to boost the market growth

The popularity of leisure pursuits like off-road biking and snowmobiling is anticipated to fuel the expansion of the power sports industry. Recreational activities are those that people engage in during their free time to rejuvenate their bodies and minds. Power sports vehicles like bikes, boats and other devices are needed for snowmobiling and off-road bicycling. For instance, the conventional outdoor recreation sector in the US accounted for 37.4% of all outdoor recreation in 2020, up from 30.6% in 2019, as per the U.S. 

Compared to other powersports vehicles, ATVs offer fewer age limits, reduced maintenance expenses, and are simpler to maneuver. As a result, both younger and older people find them to be quite appealing due to these qualities and their low cost. Additionally, there have been more government attempts in North America and Europe to expand the number of ATV paths in parks. With 868.000 sales in America, 2020 became the record year for the Powersports Industry's ten-year growth. As a result, the widespread use of ATVs is another factor driving the growth of the powersports market revenue.

The Global Powersports Market Industry appears to benefit from increasing disposable income among consumers. As individuals have more financial flexibility, they are more inclined to invest in recreational vehicles such as motorcycles, ATVs, and snowmobiles. This trend is particularly evident in emerging markets, where economic growth has led to a surge in consumer spending. For instance, the Global Powersports Market is projected to reach 21.7 USD Billion in 2024, reflecting the growing interest in outdoor recreational activities. This increase in disposable income is likely to drive demand for powersports vehicles, contributing to the overall growth of the industry.

The diversity of product offerings within the Global Powersports Market Industry is a key driver of growth. Manufacturers are expanding their portfolios to include a wide range of vehicles, catering to various consumer preferences and needs. From high-performance motorcycles to utility ATVs, the variety allows consumers to choose products that align with their lifestyle and recreational interests. This broad spectrum of options not only attracts a larger customer base but also fosters competition among manufacturers, driving innovation and quality improvements. As the market continues to evolve, this diversity is expected to play a pivotal role in sustaining growth.

The Global Powersports Market Industry faces both challenges and opportunities due to evolving environmental regulations. Governments worldwide are implementing stricter emissions standards and promoting the adoption of eco-friendly vehicles. This regulatory landscape encourages manufacturers to innovate and develop cleaner technologies, such as electric and hybrid powersports vehicles. While compliance may require significant investment, it also opens avenues for growth in the market. As consumers become more environmentally conscious, the demand for sustainable options is likely to increase, potentially reshaping the industry landscape in the coming years.

The rise of adventure tourism significantly influences the Global Powersports Market Industry. As more individuals seek unique and thrilling experiences, the demand for powersports vehicles has surged. Activities such as off-road riding, snowmobiling, and motocross are becoming increasingly popular among tourists. This trend is particularly pronounced in regions known for their natural landscapes, such as the Rocky Mountains in North America and the Alps in Europe. The growth of adventure tourism not only boosts vehicle sales but also encourages the development of related infrastructure, further enhancing the market's potential. The industry's expansion is likely to align with the projected CAGR of 6.09% from 2025 to 2035.

The Global Powersports Market Industry is poised for substantial growth, with projections indicating a rise from 21.7 USD Billion in 2024 to 41.7 USD Billion by 2035. This anticipated growth reflects a compound annual growth rate (CAGR) of 6.09% from 2025 to 2035. Such projections suggest a robust demand for powersports vehicles, driven by factors such as increasing disposable income, technological advancements, and a growing interest in adventure tourism. The market's expansion is likely to attract new entrants and encourage existing players to innovate, thereby enhancing the competitive landscape.

Technological innovations play a crucial role in shaping the Global Powersports Market Industry. Manufacturers are increasingly integrating advanced features such as GPS navigation, enhanced safety systems, and improved fuel efficiency into their products. These advancements not only enhance the user experience but also attract a broader audience, including younger consumers who prioritize technology in their purchasing decisions. The introduction of electric powersports vehicles is another significant trend, aligning with global sustainability goals. As the industry evolves, these technological enhancements are expected to drive market growth, potentially contributing to the projected increase to 41.7 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Powersports market accounted for USD 7.7 billion in 2021 and is expected to exhibit a significant CAGR percent growth during the study period. This can be attributed to the region's abundant leisure opportunities and the excellent local weather. In the US, there are 7,539 neighborhood parks and recreation facilities. 

These neighborhood parks and recreation facilities collectively employ 45,701 people, generate more than $2 billion in annual revenue, and have $9 billion in assets. Additionally, the existence of well-known competitors, like Polaris, Arctic Cat, and Yamaha Motor Corporation (all with US and Canadian headquarters, respectively), will encourage consumers to adopt the product. Due to the significant economic impact of powersports activities, state and federal governments in the US and Canada also offer major support (for example, surveying & building trails).

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Powersports Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's powersports market accounts for the second-largest market share. Due to the expansion of recreational clubs and regional organizations that vigorously encourage off-road & recreational leisure activities, Europe is predicted to experience significant market growth. Several significant players are introducing the newest technological items in the area to increase their market share. Further, the German powersports market held the largest market share, and the UK powersports market was the fastest-growing market in the European region.

The Asia-Pacific Powersports Market is expected to grow at the fastest CAGR from 2022 to 2030. The industry is anticipated to increase significantly in Asia Pacific. Consumers are more aware of leisure options and have more disposable income. There is a higher demand in this area, particularly for side-by-sides and heavyweight motorcycles. 

In response to the rising demand for off-highway vehicles, several well-known automakers and some fresh faces are starting to produce these vehicles to increase their market share and revenue streams. As an illustration, Great Wall Motor of China declared in March 2021 that it would launch a new, independent brand for its off-road vehicles. Moreover, China’s powersports market held the largest market share, and the Indian powersports market was the fastest-growing market in the Asia-Pacific region.

Since the major market players are investing a lot of money in R&D to expand their product offerings, the powersports market will continue to grow. Along with significant market developments such as new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations, market participants are participating in various strategic efforts to increase their global footprint. 

Powersports industry rivals must provide competitively priced goods if they hope to flourish and endure in a harsh environment where rivalry and the market are growing.

Local manufacturing to cut operating costs is one of the main business tactics manufacturers utilize in the global powersports industry to help customers and increase the market sector. The powersports industry has recently provided some of the most important benefits to medicine. The powersports market major player such as Yamaha Motor Co. Ltd, Polaris Industries, Honda Motor Co. Ltd, and Textron Inc., among other important companies, are funding R&D initiatives to increase market demand.

RumbleON, Inc. offers web-based services. The company operates an e-commerce platform that allows consumers and dealers to buy, sell, trade, and finance used recreational vehicles and inspect, recondition, and distribute them. RumbleON serves customers in the United States. Powersports, Automotive, and Vehicle Logistics, are its three business segments. 

In March 2021, RumbleOn Inc., an Irving-based e-commerce platform that buys, sells, trades, and finances motorcycles, formally entered into a definitive deal to purchase RideNow, the nation's largest powersports shop. The merger will create what is described as "the only omnichannel customer experience in powersports and the largest publicly traded powersports dealership platform."

Also, Polaris Inc., located in Medina, Minnesota, is an American producer of RZR, motorcycles, snowmobiles, all-terrain vehicles, and neighborhood electric vehicles. Polaris was founded in Roseau, Minnesota, and maintains engineering and manufacturing operations there. Polaris Inc., located in Medina, Minnesota, is an American producer of RZR, motorcycles, snowmobiles, all-terrain vehicles, and neighborhood electric vehicles. 

Polaris was founded in Roseau, Minnesota, and maintains engineering and manufacturing operations there. In December 2020, Polaris received three national master standing offers (NMSOs) from Public Services and Procurement Canada (PSPC) to sell snowmobiles, all-terrain vehicles (ATVs), and side-by-side utility vehicles. Canadian federal government departments, agencies, Crown corporations, and recognized Municipal, Academic Institutions, Schools, and Hospital Sectors (MASH) all have access to purchase these Polaris off-road vehicles regularly at pre-negotiated pricing, terms, and conditions.