PUBLISHER: Allied Market Research | PRODUCT CODE: 1344314
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344314
According to a new report published by Allied Market Research, titled, "Power Sports Market," The power sports market was valued at $29.6 billion in 2022, and is estimated to reach $59.4 billion by 2032, growing at a CAGR of 7.4% from 2023 to 2032.
Power sports refer to recreational activities or sports that involve the use of vehicles or equipment with high-powered engines or motors. These activities typically provide an adrenaline rush and are known for their speed, excitement, and physical exertion. This involves driving or riding vehicles specially designed for off-road terrains, such as all-terrain vehicles (ATVs), dirt bikes, or dune buggies. Off-roading allows participants to navigate through rugged landscapes, including mountains, deserts, forests, or muddy terrains.
The rising popularity of off-roading and adventure tourism has indeed had a significant impact on the power sports market. Power sports vehicles like all-terrain vehicles (ATVs), side-by-side (SxS), and motorcycles, have become increasingly sought after by enthusiasts looking for thrilling outdoor experiences and exploring rugged terrains. Moreover, in recent years, there has been a growing interest in outside recreational activities and adventure tourism. People are seeking unique and thrilling experiences, and off-roading provides them with an opportunity to explore challenging terrains and engage in adrenaline-pumping adventures. Furthermore, the growth of the power sports market is also influenced by the increase in disposable income among consumers. Off-roading and adventure tourism are often considered premium recreational activities and individuals with higher disposable income are more likely to invest in power sports vehicles for their outdoor adventures. Also, power sports activity vehicles have seen significant advancements in technology, making them more capable and reliable for off-road use. These vehicles now offer improved suspension systems, enhanced safety features, and better performance, attracting more enthusiasts to participate in off-roading and adventure tourism.
Power sports vehicles, particularly motorcycles and ATVs, are associated with inherent risks. Safety concerns and accidents can deter some individuals from participating in power sports activities or purchasing such vehicles. Moreover, governments often enforce safety regulations and standards, which can increase manufacturing costs and affect the overall market. Concerns about personal safety and the potential for accidents may lead potential customers to opt for safer alternatives or choose not to engage in power sports altogether. Furthermore, the risk of accidents and injuries associated with power sports vehicles can have a significant impact on the market. High-profile accidents and fatalities can create negative publicity and contribute to a negative perception of the industry. These incidents may discourage potential customers and lead to decreased demand for power sports vehicles.
The growing focus on environmental sustainability and the increasing demand for electric vehicles present a significant opportunity for the power sports market players. Moreover, with a rising global concern for environmental sustainability, there is a growing demand for cleaner and greener transportation options. Electric power sports vehicles offer an attractive alternative to traditional gasoline-powered vehicles, as they produce zero or minimal emissions. This aligns with the goals of environmentally conscious consumers and provides an opportunity for manufacturers to capture this market segment. In addition, electric power sports vehicles generally have lower operating costs compared to their gasoline counterparts. They require less maintenance, have fewer moving parts, and the cost of electricity is often lower than that of gasoline. This cost advantage can attract consumers who are looking for more affordable options and can potentially lead to increased sales for manufacturers.
The COVID-19 pandemic has had significant impacts on the market for power sports. The power sports industry relies on global supply chains for manufacturing components and assembling vehicles. The pandemic caused disruptions in the supply chain due to factory closures, transportation restrictions, and labor shortages. This resulted in production delays and reduced inventory levels, affecting the availability of power sports vehicles in the market. Moreover, during the pandemic, many people faced financial uncertainties and restrictions on travel and outdoor activities. This led to a decline in consumer demand for power sports vehicles. Furthermore, dealerships and retailers selling power sports vehicles were subject to temporary closures or reduced operating hours in many regions to comply with lockdown measures. These restrictions limited the ability of consumers to visit showrooms, test-drive vehicles, or make purchases, further impacting sales.
The key players profiled in this report include: Polaris Inc., Arctic Cat Inc., Bombardier Recreational Products Inc., Suzuki Motor Corporation, Yamaha Motor Co., Ltd., Kawasaki Motors, Ltd., RumbleOn INC., Honda Motor Co., Ltd., Harley Davidson, Inc., and Kubota Corporation. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.