[Research Report] The 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.
Adventure tourism involves traveling to new locations for gaining new experiences, with controlled risk components and personal challenges in wild and exotic environments. An increase in the number of visitors interested in off-road driving is contributing to the economic growth of the respective country.
Powersports generates over US$ 1.15 billion in revenue in Malaysia each year through housing, logistics, and tourism expenditures. Racing events hosted by Malaysia include the Motorcycle Grand Prix (MotoGP), the Asia Road Racing Championship (ARRC), and the Malaysian Cub Prix. These events bring significant societal and economic benefits. The widespread awareness among sports tourists regarding such racing events is the heart of motorsport tourism. The long duration of the events, visibility and coverage by print and electronic media, sponsorship from domestic and global firms, and excessive economic opportunities for locals are all advantages of motorsports tourism destinations. Factors such as high energy levels, drive, and travel desire among people are the major factors pushing the travel motive. For many, the desire to meet new and like-minded people with similar sociability interests is a driving force for off-roading. These features lead to the growth of the powersports market.
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Powersports Market: Strategic Insights
Market Size Value in US$ 93,703.64 million in 2021 Market Size Value by US$ 131,083.20 million by 2028 Growth rate CAGR of 4.9% from 2021 to 2028. Forecast Period 2021- 2028 Base Year 2021
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Powersports Market: Strategic Insights
Market Size Value in | US$ 93,703.64 million in 2021 |
Market Size Value by | US$ 131,083.20 million by 2028 |
Growth rate | CAGR of 4.9% from 2021 to 2028. |
Forecast Period | 2021- 2028 |
Base Year | 2021 |
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Speak to AnalystImpact of COVID-19 Pandemic on Global Powersports Market
Prior to the COVID-19 pandemic, the powersports market was growing due to the increase in all-terrain vehicle (ATV) trader traffic. For instance, consumer interest in ATVs, utility terrain vehicles (UTVs), and specialty powersports units soared 35% in the first seven months of 2019, based on year-over-year searches on Trader Interactive's ATV Trader marketplace. ATV trader traffic is consistently growing faster monthly, reflecting a market shift that can help powersport dealers offset flattening motorcycle sales. The ATV trader traffic jumps supported the growth of the powersports market in 2019.
In 2020, the COVID-19 pandemic negatively impacted the powersports market due to the decline in the global automotive industry. The outbreak created significant disruptions in the manufacturing of products, including cars. A sharp decline in manufacturing automobiles impacted the growth of the global powersports market. Further, the data collected from the Organisation Internationale des Constructeurs d'Automobiles (OICA) showed a 16% decline in 2020 total number of vehicle production to less than 78 million vehicles. Moreover, to combat and contain the outbreak, factory shutdowns, travel bans, trade bans, and border lockdowns were imposed; these restrictions negatively impacted the manufacturing, supply, and sales of various automobile components required to manufacture cars. Therefore, the overall COVID-19 impact on the powersports market was negative in 2020.
In 2021 and 2022, the relaxation of lockdown measures and increase in production of powersport vehicles are supporting the market growth. As per an article published by Babcox Media Inc. in July 2021, new-model sales of leading brands increased more than 37.2% in the first quarter of 2021.
Before the COVID-19 pandemic, in 2019, the powersports market size was US$ 95,728.13 million. The market size during the pandemic was US$ 91,324.63 million in 2020. Furthermore, in 2021, the powersports market size was US$ 93,703.64 million. Therefore, the overall impact of the COVID-19 pandemic on the powersports market was negative in 2020.
Lucrative Regions for Powersports Providers
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Powersports Market Insights
Increase in All-Terrain Vehicle Popularity and Experience Zones
Due to their greater performance on difficult and uneven terrains, four-wheel all-terrain vehicles (ATVs) are in high demand among consumers. This is pushing ATV manufacturers to include a four-wheel-drive system as an optional feature or as a full-time option. Microfiber couplings recognize the requirement of a four-wheel-drive system in real time. The popularity of such new four-wheel ATVs is increasing in different countries. For instance, the Canadian Council of Snowmobile Organization holds sporting competitions every year. In addition, several major ATV and UTV manufacturers are hosting racing championships, which is expected to boost demand for these utility vehicles. The US has been experiencing an increase in recreational parks for ATV rides. Recreational options have been created on public lands in the country by adding miles to over 19 national recreational routes. ATVs are also widely used in the armed services, including the military and police agencies, where they are heavily used for transportation in isolated places. As a result, the rising demand for ATVs in recreational, sporting, and military applications is one of the primary factors driving the powersports market growth.
In developed regions such as North America and Europe, ATV experience zones are common. Moreover, there is a rising focus on propelling the number of these zones in emerging markets, such as India and Southeast Asian countries, to raise awareness and demand for utility vehicles. Customers can ride ATVs on artificial off-road fields at these sites. For instance, Polaris built an experience zone in Bengaluru, India, in 2018 to boost its client base.
Type - Based Market Insights
Based on type, the powersports market is segmented into all-terrain vehicles, side-by-side, and motorcycles. The motorcycles segment led the market with the largest share in 2020.
Powersports Market, by Type, 2020 and 2028 (%)
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The players operating in the powersports market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In March 2022, BRP launched electric 2 wheel motorcycles amid the 50th anniversary of the Can-Am brand. The Can-Am brand is back to its motorcycles roots with complete electric-based product line. With electric motorcycles, there comes a great opportunity to flourish in the motorcycles market.
- In March 2021, American Landmaster launched lithium-powered side-by-side called the Landmaster EV. American Landmaster partnered with industry's two best leaders in lithium technology and AC motors.
Company Profiles
- American Landmaster
- ARCTIC CAT
- BRP
- Hisun Motors Corp., USA
- Kawasaki Motors Corp
- Polaris Inc.
- Yamaha Motor Corporation
- Suzuki Motor USA
- Volcon ePowersports
- American Honda Motor Company, Inc.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Increase in all-terrain vehicle popularity and experience zones and rise in use of powersports to boost adventure tourism are driving the growth of the powersports market.
The market opportunity lies in developing countries. Developing countries have become a hub of opportunity for various markets, including powersports market. Further, innovations in powersports products is presenting significant potential for the future growth of the powersports market players.
Based on type, the powersports market is segmented into all-terrain vehicles, side-by-side, and motorcycles. The motorcycles segment led the powersports market with the largest share in 2020.
In 2021, APAC led the market with a substantial revenue share, followed by North America and Europe. APAC is a prospective market for powersports manufacturers.
The major five companies in powersports includes Arctic Cat Inc; American Honda Motor Co., Inc; Polaris Inc.; Suzuki Motor Corporation; and Yamaha Motor Co., Ltd.
Based on motorcycles, powersports market is segmented into street, cruiser, sports, dual sports, adventure, and others. In 2020, the street segment led the market and accounted for the largest market share.
The List of Companies - Powersports Market
- American Landmaster
- ARCTIC CAT
- BRP
- Hisun Motors Corp., USA
- Kawasaki Motors Corp
- Polaris Inc.
- Yamaha Motor Corporation
- Suzuki Motor USA
- Volcon ePowersports
- American Honda Motor Company, Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
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Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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