Powersports Market to Exhibit a Moderate CAGR of 5.31% over 2023-2030; Growing Demand for ATVs and Electric Variants Drives the Market Expansion

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. Fortune Business Insights™ presents this information in its report titled “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”.

Powersport vehicles are specifically engineered to withstand and overcome challenging operational conditions, including debris, vibrations, shocks, and other environmental hazards. Furthermore, the industry is witnessing a growing trend toward vehicle electrification, which is expected to continue over the forecast period. Major Original Equipment Manufacturers (OEMs) are focused on introducing electric variants of snowmobiles, ATVs, jetskis, and heavy motorcycles, aiming to reduce reliance on fossil fuels.

Adoption of ATVs/SxSs due to Cost-effectiveness Leads to Market Growth During Pandemic

The market witnessed a disruptive impact during the COVID-19 pandemic, with the closure of production and assembly plants and challenges in parts supply. However, the pandemic has also created a surge in demand for off-road and on-road vehicles, a trend that is anticipated to continue throughout the projected period. Moreover, ATVs/SxS vehicles have emerged as a cost-effective alternative for short-distance goods and cargo transportation compared to traditional commercial vehicles.

Honda’s New ATVs to Offer Superior Performance due to Advanced Design

Honda Motors made a significant announcement in March 2023, about the introduction of its new product line consisting of Multipurpose All-Terrain Vehicles (ATVs) and compact Side by Sides (SxS). These innovative vehicles showcase a refined vehicle body design that is specifically engineered to cater to a variety of multi-terrain purposes, providing exceptional performance and versatility.

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ATVs are Gaining Popularity and are in High Demand due to Lower Age Restrictions

Rising ATV adoption is fueling the powersports industry. ATVs are highly popular among both younger generations and older individuals due to their lower age restrictions, lower maintenance costs, and easy maneuverability. Government initiatives in North America and Europe to expand ATV pathways in parks, such as the development of the Bush Head Shoals ATV Park in Georgia, further contribute to the market's development. The increasing adoption of ATVs is expected to drive significant advancements and opportunities and increase the market share, as consumers seek thrilling outdoor experiences and cost-effective transportation solutions.

However, insufficient availability of suitable safety equipment during off-roading activities may potentially limit the market growth.

Competitive Landscape

Business Focus on Long-term Partnerships to Develop Innovative Vehicles

Key industry players are making substantial investments to expand their digital presence, facilitating a more streamlined powersport ownership experience. A noteworthy example is the recent introduction of Polaris' electric Ranger XP Kinetic product line in April 2023. These innovative vehicles are equipped with fully-electric powertrains specifically designed for off-road use, the result of an exclusive 10-year collaboration between Polaris and Zero Motorcycles.

Notable Industry Development: 

• March 2023 – Polaris launched its marketplace called Polaris Xchange, which allows consumers to check out and shop for new and used Polaris vehicles online. The site offers off-road vehicles, motorcycles, side-by-sides, and ATVs.

List of Key Players Profiled in the Report:

• 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)

Further Report Findings:

• With revenue of USD 20.44 billion in 2022 North America leads the market.
  Due to the significant economic impact of powersport activities, both state and federal governments in the U.S. and Canada are actively involved in assisting widespread support such as designing trails and surveying.
• Europe holds a considerable market share due to the increasing popularity of powersports, recreational clubs, and provincial organizations.

Table of Segmentation