Power Sports Aftermarket Industry size worth $14 Bn by 2027
Published Date: January 27, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Power Sports Aftermarket size is set to surpass USD 14 billion by 2027, according to a new research report by Global Market Insights, Inc.
Increasing R&D investments in product innovation by OEMs are anticipated to proliferate the market demand for aftermarket parts. The advent of hybrid off-road power sports vehicle models will positively influence the industry through 2027 owing to high fuel-efficiency and low emissions. For instance, in December 2017, Polaris announced the launch of its hybrid UTVs.
The abundant availability of aftermarket parts is one of the major factors supporting the market growth. The power sports aftermarket offers several cost-effective parts and products such as electronic systems, lighting, and sound systems. Market players are launching new products, components, and accessories to gain a competitive advantage. For instance, in January 2020, SSV Works launched MRB2R amplified Bluetooth rocker media controller for power sports vehicles.
Increasing participation of youth in recreational activities and increasing presence of recreational parks & trails are some of the prominent market factors driving the industry demand. As per the market data provided by the U.S. Outdoor Industry Association, in 2018, the country hosted around 150,000 miles of trails, 57,000 miles of streams, over 120 alpine ski areas, and 439 wilderness areas, providing ample space for leisure activities. Manufacturers are leveraging this market trend to expand their presence and expand their business.
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Analyst view: “The heavyweight motorcycles segment is likely to hold a significant market share propelled by high demand for innovative components to enhance the bike performance”.
The availability of counterfeit products coupled with low brand awareness among consumers is one of the major challenges hindering the power sports aftermarket size. Several local manufacturers and vendors are developing counterfeit products and components to compete with the high cost products offered by OEMs and their dealers. The counterfeit replacement parts and products affect the performance of vehicles in the long run, increasing the maintenance cost for users. Low-quality raw materials and no warranties offered by these products are posing a significant threat to the industry.
COVID-19 has reduced the sales and production of power sports aftermarket products. Factors, such as strict lockdowns and restriction on international trade, are impacting the overall supply of products and components. Market leaders including Polaris Inc., and Honda Motors had to suspend the manufacturing activities between March and May 2020. High inclination of consumers to stay at home owing to the risk of being infected by the virus has affected the participation in recreational activities. This has drastically reduced the demand for aftermarket products.
High adoption for heavyweight motorcycles is driving the industry demand
The heavyweight motorcycle segment exceeded over USD 4 billion in 2020. The growing demand for these vehicles is encouraging OEMs to invest in expanding their production and R&D, augmenting the market representation of replacement parts and products. For instance, in September 2018, Harley-Davidson Inc announced its plans to open a new R&D facility in Silicon Valley for the development of electric motorcycles.
Browse key industry insights spread across 250 pages with 390 market data tables & 22 figures & charts from the report, “Power Sports Aftermarket Size By Vehicles (All-Terrain Vehicles [Driveline & Transmission Parts, Electronics, Frame Body Parts, Brake Systems, Engine Systems], Side-by-Side Vehicles [Driveline & Transmission Parts, Electronics, Frame Body Parts, Brake Systems, Engine Systems], Snowmobiles [Driveline & Transmission Parts, Electronics, Frame Body Parts, Brake Systems, Engine Systems], Heavyweight Motorcycles [Driveline & Transmission Parts, Electronics, Frame Body Parts, Brake Systems, Engine Systems], Personal Watercrafts [Driveline & Transmission Parts, Electronics, Frame Body Parts, Brake Systems, Engine Systems]), By Sales Channel (Offline, Online), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Offline sales channels generating significant market revenues
The offline sales of power sports aftermarket parts are forecast to grow at more than 3.5% CAGR through 2027. Consumers prefer to physically inspect critical components and parts to ensure their quality. Offline dealers and distributors also allow customers to test the proper functioning of parts. High reliance of power sports vehicle manufacturers on offline sales channels, such as affiliated dealers and distributors, will contribute to the industry growth.
Positive economic indicators in North America to drive the market
The North America power sports aftermarket is expected to reach USD 6 billion by 2027. Factors, such as high spending capacity of consumers and rising contribution of the outdoor recreational industry in the economy, are fueling the regional industry. According to the U.S. Outdoor Industry Association, in 2017, the overall outdoor recreation accounted for 2.2% of GDP. The presence of various manufacturers in the region including BRP Group, Harley Davidson, and Polaris Inc., is also positively influencing the market in the U.S. and Canada.
The governments and private organizations in North America are developing policies and initiatives for the development and enhancement of new and existing off-road trails. For instance, in January 2020, the Pennsylvania Department of Conservation and Natural Resources announced its plans to add new off-road ATV trails in the region to attract adventure enthusiasts.
Key manufacturers operating in the power sports aftermarket are adopting new product launch strategies to strengthen their market position and maintain a steady stream of revenues. For instance, in January 2020, SSV Works launched RZ5-UD10, an audio system for ATVs and UTVs to enhance the user experience. Partnerships and strategic collaborations are some of the other prominent strategies adopted by industry players.
A few of the prominent players operating in the power sports aftermarket include Yamaha Motor Co., Ltd., Western Power Sports, Suzuki Motor Corporation, Polaris Inc., Motorsport Aftermarket Group, LeMans Corporation, Kubota Corporation, Kawasaki Motors Corporation, Honda Motor Co., Ltd., Harley Davidson, Deere & Company, Bombardier Recreational Products, and AISIN SEIKI Co., Ltd.