Power Sports Market Expected to Reach $59.4 Billion by 2032—Allied Market Research

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 typically refer to recreational activities or sports that involve the use of vehicles with high power and performance capabilities. These activities often provide an exhilarating experience and are popular among thrill-seekers and enthusiasts. This category includes activities like off-roading, where individuals use powerful vehicles such as all-terrain vehicles (ATVs), quad bikes, dirt bikes, dune buggies, or side-by-side (SxS) vehicles to navigate challenging terrains, such as trails, sand dunes, or mud pits. Moreover, power sports in water include activities such as jet skiing, water skiing, wakeboarding, and personal watercraft (PWC) racing. These activities involve high-speed watercraft propelled by powerful engines.

With rising disposable income people have more money to spend on leisure items like power sports vehicles. These vehicles can be relatively expensive to purchase, maintain, and operate, along with costs like fuel, maintenance, and insurance. Therefore, higher levels of disposable income enable consumers to afford these additional expenses, leading to increased demand for power sports activities vehicles. All these factors are projected to drive the power sports industry growth during the forecast period.

However, power sports vehicles are often powered by combustion engines, which contribute to air and noise pollution. Increasing environmental consciousness and stricter emission regulations can pose challenges for manufacturers in terms of developing cleaner and more sustainable power sports vehicles. This can also impact consumer preferences, as some individuals may opt for more eco-friendly alternatives. Power sports vehicles, especially those with high-performance engines, can generate significant noise levels, which can disturb wildlife, ecosystems, and local communities. Noise pollution regulations are becoming more stringent in many areas, limiting the permissible noise levels for power sports vehicles. Manufacturers need to develop noiseless vehicles to comply with these regulations, which can add complexity and cost to the production process. Another aspect of environmental impact is the materials used in power sports vehicles. The production of vehicles often involves the use of non-renewable resources, such as metals and plastics. Manufacturers are increasingly under pressure to adopt more sustainable materials, reduce waste, and improve the recyclability of their products. All these are the major factors anticipated to hamper the market growth in the future.

Power sports vehicles play a crucial role in adventure tourism, where people seek thrilling experiences in natural landscapes. This trend is boosting the demand for off-road vehicles and watercraft for activities such as off-roading, trail riding, water sports, and exploring remote areas. Power sports companies can capitalize on this trend by providing specialized products and services for adventure tourism. Furthermore, the demand for power sports vehicles in adventure tourism is growing as more people seek thrilling and adventurous experiences. This presents an opportunity for power sports companies to cater to this market segment by providing specialized vehicles that meet the needs of adventure tourists. Moreover, power sports companies can expand their product offerings to cater specifically to adventure tourism. They can develop and market vehicles that are designed for off-roading, trail riding, water sports, and exploring remote areas. These specialized vehicles can offer enhanced performance, durability, and safety features to meet the demands of adventure tourists. In addition, power sports companies can capitalize on adventure tourism by offering rental services for power sports vehicles. Many tourists may not own their own vehicles or may not want to transport them to their travel destinations. By providing rental services, power sports companies can allow adventure tourists to access and enjoy their vehicles without the need for ownership.

The power sports market share is segmented on the basis of vehicle type, application, propulsion, and region. By vehicle type, it is classified into all-terrain vehicles (ATV), side by side vehicles, personal watercrafts, snowmobiles, and heavyweight motorcycles. By application, it is classified into on-road and off-road. By propulsion, it is classified into gasoline, diesel, and electric. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the power sports market 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 report offers a comprehensive analysis of the global power sports market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Power Sports Industry

• The pandemic led to temporary closures and restrictions in manufacturing facilities and supply chains worldwide. This resulted in a decrease in production and availability of power sports vehicles, affecting the market supply. Many people faced financial challenges due to job losses, reduced income, or economic uncertainty during the pandemic. Therefore, consumers became more cautious with their spending, leading to a decline in discretionary purchases, including power sports vehicles.
• COVID-19 restrictions and lockdown measures limited travel and outdoor recreational activities. This affected the demand for power sports vehicles, as people had fewer opportunities for leisure activities and travel.
• Tourists frequently hire power sports vehicles and utilize them for recreational reasons at famous tourist spots. Travel restrictions and lower tourism rate during the pandemic had a severe influence on the tourism industry, decreasing demand for power sports vehicles.

Key Findings of the Study

• Based on vehicle type, the heavyweight motorcycles sub-segment emerged as the global leader in 2022 and the all-terrain vehicles (ATV) is anticipated to be the fastest growing during the forecast period.
• Based on application, the off-road sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on propulsion, the gasoline sub-segment emerged as the global leader in 2022 and the electric sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, North America registered the highest market share in 2022 and Asia-Pacific is predicted to show the fastest growth in the upcoming years.