Online Power Sports Market size worth $6bn by 2026
Published Date: June 23, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Online Power Sports Market size is set to exceed USD 6 billion by 2026, according to a new research report by Global Market Insights, Inc.
The market growth is driven by increasing technological advancements and green production & manufacturing initiatives by market leaders. Rising consumer inclination toward purchasing environmentally friendly vehicles is encouraging online power sports equipment manufacturers to introduce zero-emission models. Increasing adoption of electric ATVs and heavyweight motorcycles is expected to propel the market demand.
Rapid growth in global tourism coupled with increasing tourist participation in off-road adventure activities is propelling the online power sports market revenue. According to a market report by the UN World Tourism Organization, Europe registered 710 million international tourist arrivals in 2018. The growing market trend of consumers utilizing websites and social media platforms to buy and rent online power sports equipment is supporting the market demand.
Industry challenges include high initial costs, expensive spare parts, and servicing of online power sports equipment. Increasing safety standards for operating these vehicles require regular maintenance and servicing. Moreover, growing consumer inhibitions related to driver and passenger safety are restricting the large-scale adoption of online power sports equipment. However, increasing number of training centers and provision of proper driving instructions are expected to minimize the impact of this restraint. Market players are also investing in R&D activities to develop low cost spare parts for these vehicles.
The rapid spread of COVID-19 is inflicting high loss of life in several countries across the globe. This has led to government-enforced restrictions on international travel, impacting the tourism industry globally. Social distancing measures and ban on public gatherings have caused indefinite delays in organization of sports events and adventure activities, hampering the market growth. The manufacturing sector is also severely impacted due to temporary shutdown of production facilities and labor shortage.
Increasing recreational activities in snowy terrains boosting the demand for snowmobiles
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The snowmobile segment held over 6.5% online power sports market share in 2019 and is anticipated to reach USD 450 million by 2026. The market analysis shows a rapid growth in snowmobiling trends, contributing to the proliferation of these vehicles in snow terrains. The growing trend of adoption of snowmobiling as a family sport in Europe and North America is fueling the market demand.
Growing number of snowmobile races and outdoor sporting events across the globe are driving the demand for these online power sports vehicles. Increasing participation in big racing competitions, such as World Championship Snowmobile Derby and International 500 snowmobile race, is proliferating the adoption of these vehicles. The availability of various snowmobile models with advanced engine technologies and diversified seating configurations will further boost the online power sports market share.
Market players are launching new online power sports products with enhanced engine performance and efficiency to cater to the growing demand for snowmobiles in adventure activities. For instance, in January 2020, BRP Group announced the launch of Ski-Doo Summit 850 E-TEC Turbo snowmobile. The vehicle is equipped with a factory-charged turbocharger engine to deliver enhanced performance at altitudes higher than 8,000 feet.
Browse key industry insights spread across 85 pages with 48 market data tables & 15 figures & charts from the report, “Online Power Sports Market Size By Vehicle (All-Terrain Vehicle, Side By Side Vehicle, Personal Watercraft, Snowmobile, Heavyweight Motorcycle), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Emergence of online power sports equipment manufacturers in Europe
Europe online power sports market revenue was over USD 1 billion in 2019 and is expected to register over 4% growth during the forecast period. Favorable climate and increasing tourism in Europe are supporting the proliferation of recreational activities in the region. Increasing demand for personal watercrafts in countries including Spain, the UK, and Italy is further contributing to the industry demand.
Additionally, the growing presence of established and emerging players, such as BRP Group and Polaris, Inc, is positively influencing the regional market size. These players are investing high amounts in R&D activities to develop new products. For instance, in 2019, Polaris invested approximately USD 240 million in R&D initiatives.
Key strategies adopted by online power sports market players include expansion of business in international markets to cater to a wide customer base. For instance, in June 2019, Harley Davidson announced its plans to manufacture its heavyweight touring motorcycles in Europe. This business expansion will aid the company to reduce the European Union tariff expenses and enhance its distribution channel for online power sports vehicles in Europe.
Market leaders are also launching new products as a part of their growth strategy. For instance, in September 2019, Yamaha Motor Corporation launched its new XT-R models and Side-by-Side (SxS) vehicles in the market. These models include the company’s technologically enhanced Wolverine X2, Grizzly, and Wolverine X4 side-by-side vehicles focused on recreational activities.
Key players in the market include Harley Davidson, Arctic Cat, Inc., Honda Motor Co. Ltd, Polaris, Inc., Bombardier Recreational Products, Textron, Inc., Kawasaki Motor Corporation, Yamaha Motor Co., Ltd., KYMCO, Suzuki Motor Corporation, and Kubota Corporation.
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