According to the latest research report on "Powersports Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 131,083.20 million by 2028, registering a CAGR of 4.9% during 2021-2028.
Increase in All-Terrain Vehicle Popularity and Experience Zones to Drive Powersports Market During Forecast Period 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. The global powersports market is expected to grow significantly because of continued worldwide economic development, rise in consumer spending, increase in younger generation population, and surge in demand for off-road riding. Furthermore, the growing use of powersport vehicles in defense and military activities, construction, and recreation, as well as the adoption of new technologies and a higher employment rate, expanding utility activities, and increasing interest in sports competitions, are all driving the market.
In January 2019, associates at Honda of South Carolina Mfg., Inc. (HSC) celebrated the start of mass production of all-new Talon sport side-by-side. Thus, the surging production of all-new Talon sport side-by-side vehicles propelled the growth of the powersports market during pre-COVID-19 pandemic scenario.
In 2020, the downfall in the automotive industry hindered the powersports market growth. As per the CNBC News article published in December 2020, the sales of new vehicles in the US were down to approximately 14.4 or 14.6 million, from 17 million or higher in the past five years. Furthermore, the decline of the North American market impacted every part of the automotive industry, including production logistics, finished automobiles, and aftermarket. Therefore, the overall impact of the COVID-19 pandemic on the powersports market in North America was negative.
Key Findings of Study
The global powersports market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The powersports market growth in North America and Europe can be attributed to the increased use of all-terrain vehicles (ATVs) for recreational activities. ATVs have lesser age restrictions and lower maintenance costs than other powersports vehicles. Also, they are easier to maneuver due to low vehicle weight. Additionally, there is a rise in government initiatives in North America and Europe to increase the number of ATV pathways in recreational parks. Therefore, owing to the increased use of ATVs and the rise in government support in these regions, the demand for powersports is increasing.
Rise in disposable income and greater consumer awareness regarding recreational activities are fueling the powersports market growth in APAC. In addition, high demand for heavyweight motorcycles and side-by-side vehicles in the region propel the market growth.
The global powersports market consists of companies having a wide range of product portfolio. Each category has well-established key players and owing to different markets in which they operate and compete it is not feasible to determine key five players in the overall powersports market. However, based on parameters such as overall revenue, brand image, current powersports product portfolio, geographic reach, customer base, technology adoption & integration, new product/feature launches, partnerships, mergers & acquisitions, and other market-related activities.
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