Powersports Market Size worth $50bn by 2026
Published Date: January 17, 2020 Authors: Ankita Bhutani, Prasenjit Saha
Powersports Market size is set to cross USD 50 billion by 2026; according to a new research report by Global Market Insights, Inc.
The escalating growth is governed by off-road & side by side vehicles, personal watercrafts, and snowmobiles due to ongoing innovations by various manufacturers focusing on improving the overall off-roading experience. Global economic development, increasing urban population, and proliferating sports & recreational activities are some of the major factors driving the powersports market share over the projected timeframe.
Additionally, improving economic factors, such as per capita GDP and disposable income in Asian countries, are the key factors driving the industry growth. The developing market outlook for powersports vehicles is attributed to technical advancements and huge impact of the automotive sector trends.
The integration of driver-assisted features and market demand for ATVs, watercrafts, snowmobiles, and other powersports products is attributed to changing consumer demand and innovation by manufacturers. With the increasing popularity of P2P vehicle sharing services, companies are offering peer-to-peer RV sharing services owing to demand from a specific consumer base.
For instance, Outdoorsy offers its peer-to-peer RV sharing options in San Francisco, allowing owners to rent their vehicles when not in use. However, harmful emissions and adverse environmental impact from powersports vehicles are limiting the market scope in several European countries. The market leaders are developing greener vehicles with electric capabilities to overcome environmental hazards, further driving the market growth.
Browse key industry insights spread across 176 pages with 147 market data tables and 27 figures & charts from the report, “Powersports Market Size By Vehicle (All-Terrain Vehicles, Side By Side Vehicles, Personal Watercrafts, Snowmobiles, Heavyweight Motorcycles), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing demand for snowmobiles in snowy terrains
The snowmobiles segment in the powersports market will foresee a healthy growth in North America and Europe owing to rising demand from the recreational industry and activities in snowy terrains. The availability of multiple powersports models with diversified engine alternatives including two-stroke & four-stroke engine technology coupled with multiple seating configurations further adds up to the market share. Market players are launching electric models to save huge fuel consumption and lower the environmental impact.
For instance, in June 2019, Taiga Motors announced the launch of its electric snowmobile to cater to need for cleaner solutions in the snowmobiles industry. In 2016, Yamaha introduced the Yamaha Chip Controlled Throttle (YTTC-T) for snowmobiles. This system controls and regulates the volume of air intake into a high-revving engine for controlling the air-fuel mixture, enhancing efficiency & throttle response. The technology optimizes the relationship between airflow, engine speed, and drive torque curve for delivering controlled & smooth power delivery for high-performance & high racing engines, further creating a positive market outlook.
Growing expansion and partnerships of major manufacturers in Europe
European countries are posing a huge demand for UTVs, snowmobiles, and personal watercrafts in the powersports market owing to favorable weather conditions and increasing recreational activities. Established players are expanding their reach in Europe by developing distribution channels and partnership strategies with financing companies, which contribute to the market expansion factors.
The development of the tourism sector is another factor boosting the demand for recreational & powersports products. Companies operating in the EU need to comply with stringent manufacturing and product-related regulations owing to environmental concerns and low carbon emission initiatives. The off-road and powersports organizations are working on the development of suitable trails to support the high consumption of these products, further influencing the market statistics.
Key players operating in the powersports market are BRP Inc., Polaris Industries Inc., Kawasaki Motors Corporation, Honda Motor Co., Ltd., Arctic Cat Inc., Harley Davidson, Kubota Corporation, Suzuki Motor Corporation, Yamaha Motor Co. Ltd., and Deere & Company.
Advancements in powersports product design along with improvements in configuration and after-sales services are among the major focus areas of industry participants for improving their market share. The industry is expected to witness strong competition owing to adoption of aggressive strategies including portfolio diversification, mergers & acquisitions, and geographic expansion for gaining higher visibility into the market.
For instance, in February 2015, Polaris completed the acquisition of Hammerhead off-road vehicle business for diversifying its product portfolio with a wide range of off-road vehicles. Market players are focusing on the enhancement of their manufacturing facilities and powersports vehicle upgrades to pose a high level of differentiation and transform the market outlook. Additionally, OEMs are adopting several cost reduction initiatives, such as opting for low-cost manufacturing processes, computerized production processes, and establishing new partnerships, to increase their profitability in the industry.
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