Powersports Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Heavyweight Motorcycle, Recreational Off-road Vehicles (ROVs), Jetski, and Snowmobile), By Application (On-Road, Off-Road, and Others), By Fuel Type (Gasoline, Diesel, and Electric), and Regional Forecast, 2023-2030

The global powersports market size was valued at USD 36.27 billion in 2022. The market is projected to grow from USD 37.96 billion in 2023 to USD 54.52 billion by 2030, exhibiting a CAGR of 5.31% during the forecast period.

Powersport vehicles are high-performance vehicles intended for off-highway as well as on-highway use. They are designed to withstand extreme operating conditions such as shock/vibration, debris, and other environmental hazards.

Increasing demand among the youth for off-road adventure tourism and leisure activities, a rise in disposable income, clubs, and state organizations promoting powersports activities drive market growth. Additionally, government policies supporting the development of recreational infrastructure also increase the market growth.

COVID-19 IMPACT  

Shift toward Alternate Means of Transportation during Pandemic Helped to Increase Demand for Powersport Vehicles

The impact of COVID-19 on the market has been characterized by the shutdown of production and assembly plants along with reduced parts supply. However, this market witnessed a surging demand during the pandemic, owing to exponential sales compared to previous years. For instance, according to data published by Solomon Partners, the U.S. witnessed a 24% YoY growth of ATVs/SxS vehicles.

Majority of the automotive industry was shut down during the pandemic, so the populace shifted toward an alternate means of transportation, leading to high sales in the market. Additionally, ATVs/SxS offer a cheaper alternative to commercial vehicles for short-range goods and cargo transportation. Moreover, ATVs offer great advantages on off-roads due to their robust build quality. Thus, the pandemic induced new and greater demand for off-road and on-road vehicles, which is expected to continue post-pandemic over the forecast period.

LATEST TRENDS

High Demand for Vehicle Modifications with Additional Accessories to Influence Market Growth

According to the Specialty Equipment Market Association (SEMA), around 82% of powersports vehicle owners plan to purchase accessories for their vehicles within three months of purchase. Powersports vehicles are used across diverse terrains for various activities. Enhancing functionality using utility-oriented modifications is a top priority for off and on-road enthusiasts.

The trend of vehicle electrification is also expected to grow during the forecast period. Since major OEM manufacturers aim to introduce their electric variants of ATVs, heavy motorcycles, jetskis, and snowmobiles, introducing electric models will further reduce fossil-fuel dependence as these vehicles consume fuel at a higher rate. Thus, major players are focusing on developing EV models of their vehicles to promote green energy and sustainability.

DRIVING FACTORS

Increasing Adoption of ATVs to Drive the Powersports Market Growth

ATVs have lesser age restrictions and lower maintenance costs than other powersport vehicles, and are easier to maneuver, owing to their low vehicle weight. Therefore, these factors and their affordable pricing have made powersports highly popular among the younger population and older adults.  

Government initiatives in North America and Europe to increase the number of ATV pathways in parks have also increased. For instance, in Georgia, a federal grant was awarded for the growth of a new recreational facility, Bush Head Shoals ATV Park. Hence, the high adoption of ATVs is expected to drive the development of the market.

Economic Impact of Snowmobiling to Augment Market Growth

Snowmobile tourism is keenly endorsed through trail maps and information guides by state and regional travel agencies, as it has become a significant outdoor activity. For instance, according to the data issued by the International Snowmobile Manufacturers Association (ISMA), approximately USD 36 billion is expended on snowmobiling annually in the U.S. and Canada.

Snowmobiling generates approximately USD 350 million in terms of overall economic impact in Maine. Similarly, an economic impact study by the Quebec Federation of Snowmobile Clubs revealed that the snowmobile industry generated around USD 2 billion in Quebec. Hence, these factors are promoting the growth of snowmobiling, which will, in turn, drive the global market growth.

RESTRAINING FACTORS

Environmental Impact and Safety Aspects to Restrain Market Growth

Most powersport vehicles operate on conventional fuel and have highly polluting engines. Heavyweight motorcycles, in particular, consume a high quantity of fuel and emit larger emissions. Regulatory norms aimed at reducing the harmful impact of such vehicles and the greater consumer need for fuel-efficient vehicles are leading to decreasing sales.

Additionally, according to the Consumer Product Safety Commission (CPSC), around 81,800 people were injured in the U.S., owing to ATV-related incidents in 2018, with children younger than 16 involved in 26% of the incidents. Lack of appropriate safety equipment while off-roading is attributed to the high number of rollover and collision incidents. Hence, increased focus on the environmental impact of these vehicles and their unmanaged use by children contributing to high fatalities is responsible for restraining the market growth.

SEGMENTATION

By Vehicle Type Analysis

Higher Demand for Short and Off-road Cargo Transportation is Driving the Demand for Recreational Off-road Vehicles (ROVs)

By vehicle type, the market is segmented into heavyweight motorcycle, ROVs (all-terrain vehicles, side by side, and utility terrain vehicle), jetski, and snowmobile. The ROVs segment dominated the market share and is expected to grow at a steady growth rate owing to features such as multiple seating configurations, enhanced rollover protection, versatility in off-road use, including forestry and agriculture, and utility as well as luxury tasks.

Snowmobiles are highly popular for recreational use due to growing tourist attractions, and snow recreational activities provide a popular sport for North America and Europe regions. Additionally, major players are aiming to introduce new electric models to support the adoption of electrification technology to tackle climate change.

By Application Analysis

Off-road Segment to Grow at a Significant Pace Owing to Increasing Versatility of Vehicles

Based on application, the market is segmented into on-road, off-road, and others. The off-road segment held the dominant share in 2022. Powersport vehicles can drive on uneven and rocky surfaces and steep trails, providing versatility across all terrains. They provide impressive handling with compact size and can maneuver in tight spaces such as crowded forests (ATVs and side by side vehicles) and snowmobile trails (snowmobiles).

Moreover, off-road vehicles offer a robust structure and chassis to endure uneven surfaces. Thus, they are highly suitable for off-roading applications such as leisure, motorsports, and cargo transportation. Hence, these few factors fuel the growth of the segment.

By Fuel Type Analysis

Lower Cost of Gasoline-fueled Vehicles as Compared to Electric Vehicles Helped the Growth of Gasoline Segment 

Based on fuel type, the market is segmented into gasoline, diesel, and electric.

The gasoline segment held the largest market share in 2022 due to high reliability and performance delivered by higher octane, pure gasoline fuel compared to other fuel types. Thus, these factors drive the demand for gasoline-powered vehicles.

The electric segment is expected to grow significantly during the forecast period owing to the rapid penetration of electrification technology across the automotive sector. Additionally, major players focus on reducing their carbon footprint by introducing electric models and aiming for sustainable manufacturing processes. Thus, electric vehicles are expected to acquire a significant market share over the forecast period, owing to growing environmental concerns.

REGIONAL INSIGHTS

High Popularity of Powersports in North America to Dominate the Market

North America held a dominant powersports market share, owing to favorable weather conditions, availability of a large number of recreational facilities, and the presence of established players, which include Arctic Cat, Yamaha Motor Corporation, BRP, and Polaris. Furthermore, the state and federal governments in the U.S. and Canada also provide extensive support (for example, surveying & designing trails), owing to the high economic impact of powersport activities. Hence, these reasons are expected to influence the dominance of this region in the market.

Europe accounted for a significant growth in the market, owing to the rise of recreational clubs and provincial organizations that are heavily promoting off-road & recreational leisure activities. Additionally, the popularity of powersports in this region is expected to fuel market growth.

Asia Pacific is expected to witness good growth in the market. High vehicle costs and lack of extensive servicing infrastructure hamper the adoption of powersports in this region. However, owing to a rise in disposable income and greater consumer awareness regarding recreational activities, there is a higher demand for heavyweight motorcycles and side by side’s in this region. Hence, these factors are predicted to drive market growth in this region.

KEY INDUSTRY PLAYERS

Major Players are Aiming Toward Introducing Technological Advancements to Offer Additional Value for Products for Consumers

The key players include BRP, Arctic Cat Inc., Honda Motor Co., Ltd., Polaris Inc., and Kawasaki Heavy Industries, Ltd. The companies aim to launch new models equipped with advanced technology and electric models to lead the competitive landscape.

Several key players are investing heavily in expanding their digital footprint, which can enable more seamless powersport ownership. For instance, in April 2023, Polaris launched its new electric Ranger XP Kinetic product line. The new vehicles feature a fully-electric powertrain engineered for off-road operations under the exclusive 10-year partnership between Polaris and Zero Motorcycles.

LIST OF KEY COMPANIES PROFILED:

• Polaris Inc. (U.S.)


• Textron Inc. (U.S.)


• Arctic Cat Inc. (U.S.)


• Honda Motor Co., Ltd. (Japan)


• BRP (Canada)


• Harley Davidson (U.S.)


• Kawasaki Heavy Industries, Ltd. (Japan)


• KYMCO (Taiwan)


• CF Moto (China)


• KTM (Austria)


• Argo (Canada)


• Taiga Motors (Canada)


• Alpina (Germany)


• Suzuki Motor Corporation (Japan)


• Yamaha Motor Co., Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – Polaris provided one of the major equipment rental companies, United Rentals, Inc., with its all-electric range of Polaris Ranger XP Kinetic UTVs. The company also announced to expand its partnership with Polaris Commercial to increase the fleet of electric UTVs further.


• March 2023 – Honda Motors introduced a new product line of Multipurpose ATVs and compact Side by Sides (SxS). These vehicles feature a refined vehicle body suitable for multi-terrain purposes with higher weight endurance and comfort characteristics.


• March 2023 – Taiga Motors Corporation introduced its long-distance electric snowmobile capabilities that offer fast charging on a few beta releases. The EV snowmobile can speed charge up to 80% in 30 minutes with a full range of 100 km.


• December 2022 – Cake, an ATV manufacturer, introduced its electric ATV designed to simplify agricultural processes. The vehicle features a lightweight body capable of semi-autonomous driving capabilities for cargo transportation.


• November 2022 – California-based start-up Boundary Layer Technologies unveiled a 58 mph electric jetski with 80kW motor and maximum speed of 58 mph.

REPORT COVERAGE

The research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the powersports market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that contributed to the market growth in recent years.

Report Scope & Segmentation