powersports Market

The global powersports market is expected to grow from US$ 93,703.64 million in 2021 to US$ 131,083.20 million by 2028; it is estimated to grow at a CAGR of 4.9% during 2021-2028.

The expanding market for utility-terrain vehicles (UTVs) is a major factor propelling the development of the powersports industry, which has been aided by advancements in technology. These advancements have led to improved durability and adaptability of off-road vehicles, providing greater enjoyment for ATV and UTV riders. For instance, Honda has developed I-4WD, which monitors front wheel speeds and automatically applies brakes to the spinning wheel while increasing driving force to the wheel with higher traction, allowing riders to conquer more challenging obstacles without stopping. Similarly, Polaris has introduced its flagship Sportsman model with independent rear suspension (IRS) and its first 4-stroke ATV powertrain, dubbed "Demand Drive," which automatically locks the front differential when severe 4-wheel traction is needed and reverts to differential 4?4 when the terrain allows. As a result, the continuous advancements in ATVs and UTVs present a profitable opportunity for powersports market players.

Impact of COVID-19 Pandemic on Europe Powersports Market

In 2019, the European powersports market witnessed a favorable expansion as a result of rising motorcycle sales in Germany and Italy. One notable example is that BMW achieved a sales figure of 15,879 units for its R1250GS model when combining the sales from both countries, as reported by moto.it.

The year 2020 saw a decline in the growth of the European automotive industry, primarily due to a decrease in the production of automotive components. The ACEA report from December 2020 revealed that the sales of cars in Europe dropped by 20.5% YoY, reaching 713,346 units. Various significant countries witnessed a decline in vehicle sales, as mentioned in an article by the Hürriyet Daily News in December 2021. The article reports that Italy and Poland experienced a 25% drop in vehicle sales, Spain and Belgium faced a decline of 12.3% and 17.1%, respectively, whereas France managed to limit the decline to 3.2%, and German registrations plummeted by 31.7%.

The period between 2021 and 2022 marked a resurgence in the tourism industry, leading to an increased demand for powersports in Europe. Eurostat's 2021 statistics reveal that the number of nights spent by tourists in European Union (EU) accommodation facilities reached 1.8 billion, which is 27% higher than the figures recorded in 2020. This rise in the tourism industry can be attributed to the boost in demand for powersports in Europe.

The global powersports market was valued at US$ 95,728.13 million in 2019, before the COVID-19 pandemic struck. However, during the pandemic in 2020, the market size decreased to US$ 91,324.63 million. Despite this setback, the market showed signs of recovery in 2021, with the global powersports market size increasing to US$ 93,703.64 million. Hence, it can be inferred that the COVID-19 pandemic had an adverse impact on the global powersports market in 2020.

The early adoption of Blink Charging Co.'s Level 2 AC charging stations has facilitated the growth of electrically powered motorcycles and other recreational vehicles. With the establishment of well-designed charging stations at dealerships, repair shops, and alternative fueling stations, bigger electric cars can be charged faster and more efficiently. Moreover, electric bikes are now being developed with the engine positioned in the wheel well, which reduces vehicle weight and generates more power with less effort. These modifications signify the vast potential for the next generation of environmentally conscious powersports.

Segway, a renowned manufacturer of stand-up personal mobility devices, introduced a range of eco-friendly powersports vehicles in 2020, which included two side-by-side vehicles and at least one ATV. While these vehicles will initially be hybrids, Segway plans to switch to all-electric vehicles in due course. As a result, it is expected that electric-powered recreational vehicles will emerge as a significant trend in the powersports market.

The powersports market is categorized by type into all-terrain vehicles, side-by-side vehicles, and motorcycles. In 2020, the motorcycles segment accounted for the largest market share. The market is also divided geographically into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, APAC emerged as the leading region in the powersports market.

The powersports market size has been determined through a combination of primary and secondary research. The research process began with comprehensive secondary research to collect qualitative and quantitative data pertaining to the market from internal and external sources. This process was conducted to obtain an overview and forecast of the powersports market for all its segments and regions, including North America, Europe, Asia Pacific, Middle East & Africa, and South America. To validate data and gain more analytical insights into the topic, primary interviews were also conducted with industry participants and commentators. These participants included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders, who specialize in the powersports market.

American Landmaster; ARCTIC CAT; BRP; Hisun Motors Corp., USA; Kawasaki Motors Corp; Polaris Inc.; Yamaha Motor Corporation; Suzuki Motor USA; Volcon ePowersports; and American Honda Motor Company, Inc. are among the key companies operating in the powersports market.