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The Powersports Market Size reached USD 18.2 billion in 2021 and is projected to grow from USD 19.4 billion in 2022 to USD 30.3 billion by 2030, showcasing a Compound Annual Growth Rate (CAGR) of 6.66% during the forecast period (2022 - 2030). The increasing popularity of recreational activities like surfing, off-road biking, and snowmobiling is a key driver for market growth. Additionally, the private sector's involvement in developing infrastructure for leisure and entertainment contributes to the expansion of the powersports market. Technological advancements in modern automobiles also play a crucial role in driving global powersports market growth.
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The surge in popularity of leisure activities, such as off-road biking and snowmobiling, is expected to boost the powersports industry. Recreational activities, known for rejuvenating both the body and mind, involve the use of power sports vehicles like bikes and boats. The expanding participation in such activities is evident, with the outdoor recreation sector in the US accounting for 37.4% of all outdoor recreation in 2020. The trend towards recreational activities has been a significant factor in enhancing the Compound Annual Growth Rate (CAGR) of the powersports market globally.
Compared to other powersports vehicles, All-Terrain Vehicles (ATVs) offer advantages such as fewer age restrictions, lower maintenance costs, and ease of maneuverability. The increased government efforts in North America and Europe to expand ATV paths in parks have contributed to their widespread use. In 2020, the Powersports Industry experienced a record year with 868,000 ATV sales in America, further propelling market revenue growth.
The market segmentation by type includes new energy engines, diesel, and gasoline. New energy engines dominated the market in terms of revenue, driven by government initiatives, growing public awareness of environmental issues, and increased availability of fast charging stations. In November 2020, DiDi Chuxing introduced the D1 electric vehicle for ride-sharing services, collaborating with the world's largest EV manufacturer, BYD, contributing to the market's growth opportunities.
The diesel engine segment is the second fastest-growing, particularly in commercial and heavy-duty vehicles, offering superior fuel efficiency compared to petrol engines. Modern diesel engines also boast lower maintenance costs and reduced noise, further driving market expansion.
The market data is segmented by application into passenger vehicles and commercial cars. Commercial cars dominated the market in 2021, fueled by economic recovery, rising disposable income, increased technological advancements in off-road vehicles, and growing use of off-road vehicles in military and recreational activities. The commercial off-road vehicle market is expected to benefit from the increasing penetration of All-Wheel Drive (AWD) and 4-Wheel Drive (4WD) vehicles and the trend towards adventure and recreational activities.
The passenger vehicle segment is the second fastest-growing, driven by the growing preference for eco-friendly vehicles among consumers. The demand for passenger cars is further boosted by various discounts offered by mobility service providers to daily commuters.
The market insights cover North America, Europe, Asia-Pacific, and the Rest of the World. The North America powersports market, valued at USD 7.8 billion in 2021, is anticipated to exhibit significant growth during the study period. The region's abundant leisure opportunities and favorable local weather contribute to this growth. Noteworthy competitors like Polaris, Arctic Cat, and Yamaha Motor Corporation, with headquarters in the US and Canada, further encourage consumer adoption. State and federal government support, including surveying and building trails, also adds to the significant economic impact of powersports activities.
Europe holds the second-largest market share, with significant growth expected due to the expansion of recreational clubs and regional organizations promoting off-road and recreational leisure activities. The German powersports market dominates the region, while the UK powersports market is the fastest-growing.
The Asia-Pacific powersports market is expected to grow at the fastest CAGR from 2022 to 2030, driven by increasing consumer awareness of leisure options and higher disposable incomes. The demand for off-highway vehicles, particularly side-by-sides and heavyweight motorcycles, is on the rise in the region. Notable automakers are entering the market to cater to the growing demand, with China leading the market, and India experiencing the fastest growth.
Major players in the powersports market, including Yamaha Motor Co. Ltd, Polaris Industries, Honda Motor Co. Ltd, and Textron Inc., are investing heavily in Research and Development (R&D) to expand their product offerings. Strategic efforts, such as new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaborations, are undertaken to enhance global footprints. Competitive pricing remains crucial for industry rivals to thrive in a growing and competitive market environment.
Local manufacturing to reduce operating costs is a key business tactic, and recent developments have seen significant benefits for the medical field. RumbleON, Inc., a notable player, operates an e-commerce platform facilitating the buying, selling, trading, and financing of used recreational vehicles. In March 2021, RumbleOn Inc. entered into a definitive deal to acquire RideNow, the nation's largest powersports shop, aiming to create the only omnichannel customer experience in powersports.
Polaris Inc., an American producer of RZR, motorcycles, snowmobiles, ATVs, and neighborhood electric vehicles, continues to make significant strides. In December 2020, Polaris received three national master standing offers (NMSOs) from Public Services and Procurement Canada, allowing regular purchases of Polaris off-road vehicles by various Canadian federal government entities.
· 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.
In January 2022, Toro Company announced the acquisition of Batesville-based Intimidator Group, adding the professional range of zero-turn mowers known as Spartan Mowers to its portfolio. The deal also includes a line of powerful side-by-side utility vehicles designed for challenging terrains.
· New Energy Engine
· Diesel
· Gasoline
· Passenger Vehicles
· Commercial Cars
· North America (US, Canada)
· Europe (Germany, France, UK, Italy, Spain, Rest of Europe)
· Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
· Rest of the World (Middle East, Africa, Latin America)
· Market Size 2021: USD 18.2 billion
· Market Size 2022: USD 19.4 billion
· Market Size 2030: USD 30.3 billion
· Compound Annual Growth Rate (CAGR) 2022
The Powersports Market Size reached USD 18.2 billion in 2021 and is projected to grow from USD 19.4 billion in 2022 to USD 30.3 billion by 2030.
The global market is projected to grow at a CAGR of 6.66% during the forecast period, 2023-2030.
Research on the market is done by industry professionals who provide personalized insights on the industry structure, market segmentation, Type assessment, competitive landscape (CL), along with penetration, and emerging trends. In addition to years of professional experience in their various fields and sectors, their analysis is largely based on primary interview (60%) and secondary research (40%) as well as years of professional experience. In addition, our researchers forecast the market's direction over the following seven years by examining past trends and the market's current position. Additionally, various trends of segments and categories that are geographically portrayed are studied and estimated using primary and secondary research.
The key level executives (VP, CEO, Marketing Directors, and Business Development Managers) of the major industry participants who are active and prominent as well as mid-scale businesses operating in this market were interviewed in-depth for this supply-side report by overall Global Market Research.
Extensive primary research was conducted to gain a deeper grasp of the market and industry. Both primary and secondary research, as well as years of pertinent professional experience, are used to support the analysis. By analyzing past and present market patterns, our experts were able to forecast the market's course over the following seven years. For the geographically offered categories in the list of market tables, it differs per category. In connection with the Global Market research report, we also conducted a number of primary interviews with senior level executives (VP, CEO's, Directors, Marketing Directors, Business Development Managers, CFOs, Technical Consultants, Key Opinion Leaders, Industry Experts, Decision Matrix Authorities, and other crucial individuals) of the key industry players who dominated the Global market.
The primary purpose of secondary research was to gather, identify, and validate the information necessary for the thorough, technical, market-focused, and commercial analysis of the global market. With the use of this study, it was also possible to classify and segment the market in accordance with market trends, geographic markets, and regional considerations linked to market type. Analysts have gathered data in the Distribution Channel for the study of the market from reliable sources including annual reports, journals, white papers, corporate presentations, company websites, international organizations of Energy and Power manufacturers, credible paid databases, and many others to gather reliable intel.
Both top-down and bottom-up methodologies were employed to assess the accuracy of the global market size. The market for as a whole was estimated using these methods for a number of different dependent submarkets. Secondary research was used to address the major industry players, and primary and secondary research was used to calculate their market shares in the various regions. This complete intellectual process includes reading the annual and financial reports of the top market participants and conducting in-depth interviews with top industry executives (VP, CEO, Marketing Directors, and Business Development Managers) to gain important industry insights.
Through reliable secondary sources and validated primary sources, the classification of the global markets and their geographic percentage splits were established. To obtain the final qualitative and quantitative data, all relevant variables that might have an impact on the market under investigation have been taken into consideration, inspected in great depth, verified through primary research, and assessed. This information was collected, added to, and thoroughly examined by professional analysts before being provided in this report. The process used to estimate the overall market size for this study is depicted in the following image as an example.
Report Code :
RL65543
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