Power Sports Market Growth Analysis Report (2022-2027)

Market Insights

"The global power sports market is estimated to grow at a healthy CAGR of 5.7% during 2022–2027 to reach a value of US$ 47.9 billion by 2027."

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The sub-category of motorsport vehicles is classified as power sports vehicles. The engine and handlebars, which regulate the vehicle's movement, are the vehicle's most prominent features. The industry participants have made significant investments as a result of the introduction of vehicles with increased performance. Side-by-side vehicles (SSVs), all-terrain vehicles (ATVs), dirt bikes, snowmobiles, powerboats, motorbikes, and personal watercraft are all examples of power sports vehicles. These vehicles are commonly used in outdoor leisure places like theme parks, trails, and wilderness areas.

These high-performance vehicles are designed so as to endure extreme operational and environmental conditions and are intended to be used for off-highway and on-highway purposes.

Market Dynamics

Market Drivers

Key dynamics include growing demand for off-road vehicles, electric power sports vehicles, and enhanced safety features. Growing consumer demand for electric sports cars, off-road vehicles, and improved safety features are some of the key dynamics. High start-up prices and strict emissions rules are issues facing the business. On the other hand, new developments in electric powertrains, connection features, and growing distribution networks are opening up new avenues for market expansion and growth.

Some of the major market drivers are:

• The surge in the growth in the youth interest in power sports.
• Surge in government initiatives towards the development of necessary power sports infrastructure.
• Increasing power sports activities being organized in different countries.
• High ownership and maintenance costs associated with power sports vehicles are among the major reasons limiting the industry's growth.

Due to their use in harsh environments and rugged terrain, these vehicles require constant maintenance and repair. They are subjected to high temperature and water conditions, causing essential components like the engine and hull to deteriorate.

Overall, the market grew by 10% in terms of units in the year 2020, a growth rate that the industry never achieved or even reached close to in the past decade. The long-term outlook is also extremely pleasing keeping the mind the growth and demand for power sports, especially ORVs and PWCs.

COVID-19 Impact

COVID-19 has put an instant halt to many industries across the globe. Lockdown norms in several countries have swiftly affected the global economy by affecting the supply chain, production, and demand in the market. Both direct, as well as indirect impacts of the pandemic, have been incorporated in this report.

Unlike other transportation segments, such as automotive and trucks that recorded a humongous decline amid the pandemic, power sports, a unique vehicle category, emerged as the savior and grew tremendously, especially in North America and Europe.

Segment Analysis

Vehicle Trends

"Off-road vehicles segment accounted for the largest market share."

The market is segmented as off-road vehicles (ORVs), snowmobiles, heavyweight motorcycles, and personal watercraft. Off-road vehicles hold dominance in the market, followed by motorcycles, PWCs, and snowmobiles. ORVs have capacities to traverse all terrains and offer ease of mobility and lower carbon emissions, the factors driving the demand for ORVs. Along with these factors, other noticeable advantages of ORVs are lower vehicle weight, a lower driving age limit for ORVs compared to other power sports vehicles, and cheaper maintenance costs. Furthermore, the introduction of new hybrid and alternative fuel-powered ORVs with low or zero emissions fuels the market growth. In ORVs, there has been a paradigm shift from ATVs to SSVs in the wake of the additional benefits of SSVs over ATVs.

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Regional Insights

"North America accounted for the largest market share."

North America is expected to remain the largest market during the forecast period due to factors such as a rise in regional engagements in leisure and recreational activities, as well as growing demand for power sports vehicles for snowmobiles and water surfing. Although Asia-Pacific is a small market, it is predicted to expand rapidly with increasing consumer disposable income and the growing interest in powersports among the regional urban population, fueling market demand in the region.

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Key Players

Most of the major players are not present in all the power sports vehicles. They hold mastery in one or a couple of vehicle types. The following are the key players in the power sports market:

• Polaris Inc.
• Honda Motor Co., Ltd.
• BRP Inc.
• Harley Davidson, Inc.
• Yamaha Motor Co., Ltd.
• Kawasaki Motors Corp.
• Suzuki Motor Corporation
• Kubota Corporation
• Deere & Company (John Deere)
• Arctic Cat Inc. (Textron)

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

What deliverables will you get in this report?

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories:

By Vehicle Type

• Off-Road Vehicle
• Snowmobile
• Heavyweight Motorcycle
• Personal Watercraft

By Region

• North America (Country Analysis: The USA and Canada)
• Europe (Russia, Sweden, Norway, Finland, and Others)
• Asia-Pacific (Australia, China, and Others)
• Rest of the World (Brazil and Others)

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s power sports market realities and future market possibilities for the forecast period of 2022 to 2027. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.