The growing popularity of powersports is expected to provide many new opportunities ln this rapidly growing market. Some of the trends fueling this long-term growth potential are:
Growing/changing market for utility-terrain vehicles (UTVs).
- Technological advancements through improved durability and adaptability to UTV’s, ensure greater enjoyment for UTV riders.
- Industry-leading companies will continue to focus on increased product range and rigorous R&D initiatives to strengthen their market standing.
Continued growth in the tourism industry, especially for powersports in Europe. In 2021, the number of nights spent at European Union (EU) tourist accommodation establishments totaled 1.8 billion, up by 27% compared with 2020, as per Eurostat statistics 2021.
The electric segment is expected to grow significantly following the rapid penetration of electrification technology across the automotive sector. According to PSR research, electric power sports market size is expected to see nearly 16% growth between 2023 and 2032.
- Major powersport OEM’s will continue to focus on reducing their carbon footprint by introducing electric models and aiming for sustainable manufacturing processes.
- Electric vehicles are expected to acquire a significant market share over the long term because of growing environmental concerns and the negative effects of toxic emissions.
Manufacturers will continue creating power sports vehicles with safer parts and accessories that help ensure optimum user safety. R&D efforts are being made to lower ownership costs, which could present lucrative prospects for North America power sports market growth.
Established companies, alongside other emerging players, are contributing heavily to an increasingly competitive market outlook, through the implementation of various strategies such as collaborations and partnerships, as well as new product launches. Four major Japanese engine manufacturers have announced they will work together to develop hydrogen-powered engines for future two-wheelers and other transportation vehicles.
The use of UTVs and ATVs in military applications will foster industry development. These vehicles are used extensively for the movement of goods and personnel in the defense sector.
Demand among youth for off-road tourism and leisure activities, especially surfing, off-road biking, and snowmobiling.
- A rise in disposable income, clubs, and state organizations promoting powersports activities.
- Government policies supporting the development of recreational infrastructure.
- Private sector participation in the construction of dedicated infrastructure for recreational and amusement purposes.
Changing lifestyles, the adoption of recreational activities by young and middle-age populations, and the improving tourism infrastructure are the major trends driving the powersports market in emerging countries.
High emphasis on safety by providing training and accessories will lower the risks involved and encourage riders to go for powersport vehicles. PSR
Michael Aistrup is a Senior Analyst at Power Systems Research
