Powersports Market Trends

Powersports Market Overview:

Powersports Market Size was valued at USD 18.1 billion in 2021. The powersports market industry is projected to grow from USD 19.3 Billion in 2022 to USD 30.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.65% during the forecast period (2022 - 2030).  The growing popularity of leisure activities like surfing, off-road biking, and snowmobiling is the key market driver enhancing the market growth. Growing private sector involvement in developing infrastructure specifically for leisure and entertainment will contribute to market expansion. The technical advancements that have been instrumental in creating modern automobiles are another important element driving the growth of the global power sports market.

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

Powersports Market Trends

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  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. Bureau of Economic Analysis, a government-owned source of official macroeconomic and industrial statistics. Therefore, the expansion of the power sports market is being driven by the expanding participation in leisure activities like a snowmobile and off-road biking. Therefore, the trend of recreational activities to enhance market CAGR across the globe has been growing in recent years.

Figure 1: Estimates of the size of the global market for all-terrain and utility vehicles between 2020 and 2030

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

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.

Powersports Market Segment Insights:

Powersports Type Insights

The Powersports Market segmentation, based on type, includes new energy engines, diesel, and gasoline. The new energy engine dominated the market with respect to the Powersports Market revenue. Some primary drivers driving the market for new energy cars are more government initiatives, rising public awareness of environmental issues, and increased access to fast charging stations in both public and private spaces. Additionally, the market's increased R&D operations will open new doors for new energy vehicle options.

November 2020: DiDi Chuxing debuted the D1 electric vehicle for ride-sharing services. Didi created D1 with the assistance of the world's largest EV manufacturer, BYD. The company intends to deploy its car in Changsha, Hunan province, to increase its share of the mobility market from 3% to 30% by 2030. This creation has further broadened the growth opportunity for the powersports industry.

The second fastest-growing segment in the powersports industry is the diesel engine segment. They are increasingly used in commercial and heavy-duty vehicles and offer superior fuel efficiency than petrol engines. This is one of the main drivers driving the market's expansion and the thriving automotive industry. Modern diesel engines also offer lower maintenance costs and reduced noise, which were drawbacks of earlier generations.

Powersports Application Insights

The Powersports Market data has been bifurcated by application into passenger vehicles and commercial cars. Commercial cars dominated the market in 2021. The recovery of the world economy and rising disposable income, rising travel and leisure activities, technological advancements in off-road vehicles, and rising use of off-road vehicles in military and recreational activities are the main drivers of the demand for commercial vehicles. AWD and 4WD vehicle penetration, and the tendency toward adventure and recreational activities, are predicted to contribute to the commercial off-road vehicle market growth.  

Figure 2: Powersports Market, by Application, 2021 & 2030 (USD Billion)

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

The second fastest-growing segment in the powersports industry is the passenger vehicle sector. One of the main factors driving demand for passenger automobiles is consumers' growing preference for eco-friendly vehicles. Most customers use business cabs, carpools, etc., which helps reduce traffic from personal vehicles. The demand for passenger cars is also increasing due to various discounts provided by mobility service providers to daily commuters. Hence, rising applications of passenger vehicles in the powersports positively impact the market growth.

Powersports Regional Insights

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.

Powersports Key Market Players & Competitive Insights

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.

Key Companies in the powersports market include

• Brp


• Suzuki Motor Corporation


• Polaris Industries, Inc.


• Honda Motor Co., Ltd


• Yamaha Motor Co., Ltd


• Textron Inc.


• Kawasaki Heavy Industries, Ltd.


• Harley-Davidson, Inc.


• Deere & Company


• Arctic Cat Inc


• Kubota Corporation


• Kwang Yang Motor Co., Ltd

Powersports Industry Developments

January 2022: Toro Company announced the acquisition of Batesville, Arkansas-based privately held Intimidator Group. Spartan Mowers, a professional range of zero-turn mowers noted for great performance, durability, and distinctive style, are designed and manufactured by the Intimidator Group. Spartan Mowers, sold through an established dealer network, has great brand recognition in the southern United States, appealing to rural markets and big acreage clients. Intimidator Group also designs and manufactures an appealing line of powerful, adaptable, side-by-side utility vehicles that operate admirably in the most difficult terrains.

Powersports Market Segmentation:

Powersports Type Outlook

• New Energy Engine


• Diesel


• Gasoline

Powersports Application Outlook

• Passenger Vehicles


• Commercial Cars

Powersports Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America