DIAMOND BAR, CA (04.21.23) – The vehicular market segment that industry-watchers refer to as the “powersports” market is, in a way, easier to label than it is to define. What, after all, is the connective tissue that joins such disparate market segments as ATVs and side-by-sides, motorcycles and dirt bikes, snowmobiles and personal watercraft–especially considering that very few of these vehicles are ever used in a “sporting,” i.e., competitive venue?
Whatever it is, one thing is certain: the powersports market is growing. The U.S. market experienced an unprecedented surge in demand in the first year of the COVID-19 pandemic, and combined with low levels of inventory, the market enjoyed record profitability at the dealership level. Likewise, the global powersports market grew by a record-setting 10% in global unit sales in the year 2020, according to a 2022 study from Stratview Research. And while sales have cooled gradually since then, more growth is the outlook going forward.
How much? The global powersports market, currently valued at $37 billion, is forecast to reach a valuation of $69 billion by 2032, with a 6% compound annual growth rate (CAGR) during the period, according to a 2023 survey published by Allied Global Insights. This expected surge is ascribed to several factors, including the increased popularity of larger side-by-side UTVs in the North American market; the lingering impacts of COVID-19 and its stimulative effect on backcountry travel; increased allocations from government entities for military use; increased consumer demand in South America and the Middle East; and increased demand for electrification, particularly in the European market.
In any event, the powersports market presents considerable growth opportunities for companies that currently serve this sector, as well as for others that can innovate new technological advancements for these vehicles and bring them successfully to market.
For this article. we consulted several industry experts for their assessments of the powersports market. What follows has been edited for clarity and length. This article was written by Douglas McColloch for sema.org
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