The power sports industry is currently undergoing an unprecedented phase of growth. According to a study done by Allied Market Research, as of 2022, the global power sports market boasted a valuation of $29.6 billion, with projections soaring to $59.4 billion by 2032. Anticipated to grow at a CAGR of 7.4% from 2023 to 2032, this industry includes diverse recreational and competitive activities using high-performance motorized vehicles. From off-road adventures to water and snow activities, power sports thrive on innovation and the pursuit of exhilarating experiences.
In recent years, the power sports industry’s significant growth can be traced back to the late 20th century, with the 1980s and 1990s serving as pivotal decades. During this period, manufacturers introduced innovative models, and the recreational aspect of power sports gained prominence. In addition, other factors influenced this shift:
- Technological Advancements: The incorporation of advanced technologies, such as electronic fuel injection, lightweight materials, and sophisticated suspension systems, has enhanced the performance and safety of power sports vehicles.
- Expanding Market: The global demand for power sports vehicles has expanded, with emerging markets contributing to the industry's growth. Increased disposable income and a desire for recreational activities have driven the adoption of motorcycles, ATVs, and watercraft.
- Cultural Shift: The cultural perception of power sports has evolved, with an increasing number of individuals viewing these vehicles as a means of outdoor adventure and excitement. This shift has broadened the demographic of power sports enthusiasts.
For motorcycles, the rise of sport bikes and cruisers in the 1980s contributed to increased interest, while the 1990s saw the emergence of powerful and specialized off-road ATVs. Watercraft manufacturers, likewise, introduced more efficient and powerful personal watercraft models during this time.
The confluence of these factors set the stage for the robust growth trajectory that the power sports industry continues to experience today.
Outlook of the Power Sports Industry
Looking ahead, the power sports industry is poised for continued growth over the next decade, driven by a combination of factors that signal a promising future for enthusiasts and industry stakeholders alike. Research conducted by industry experts and market analysts suggests a positive trajectory, with the market expected to expand significantly. This forecast is underpinned by several key drivers and trends that are set to shape the industry landscape:
- Increasing Focus on R&D Investments and Product Innovation:
The power sports industry is experiencing a surge in research and development (R&D) investments, reflecting a commitment to driving innovation in product offerings. Manufacturers and key players are dedicating resources to the development of advanced technologies, materials, and features, aiming to enhance the overall performance and user experience of power sports vehicles.
- Introduction of Electric Power Sport Vehicles in Europe:
The European market is witnessing a notable shift towards sustainability and environmental consciousness, leading to the introduction and adoption of electric power sport vehicles. Manufacturers are capitalizing on this trend by launching electric models that not only cater to eco-conscious consumers but also align with the region's stringent emissions standards and regulations.
- Growing Inclination Towards Recreational Activities in Asia Pacific:
In the Asia Pacific region, there is a growing trend of increased interest and participation in recreational activities, including power sports. This shift is driven by rising disposable incomes, changing lifestyles, and a greater emphasis on leisure and outdoor pursuits. As a result, the power sports industry is experiencing a surge in demand for various recreational vehicles.
- Rising Number of Off-Roading Events in North America:
North America is witnessing a rise in the popularity of off-roading activities, contributing to increased demand for off-road power sports vehicles. The region's diverse and expansive terrain provides enthusiasts with many opportunities for off-roading adventures. The surge in off-roading events and competitions further fuels the demand for specialized power sports vehicles designed for rugged terrains.
- Positive Outlook for Tourism Industry in Latin America and MEA:
Latin America and the Middle East & Africa (MEA) regions are experiencing a positive outlook in their tourism industries. This has a direct impact on the power sports sector, as recreational activities such as ATV riding, water sports, and other adventure sports become integral parts of tourist attractions.
These market drivers collectively contribute to the dynamic growth and evolution of the power sports industry on a global scale. Whatever it is, one thing is certain: the powersports market is growing.
Anticipated Floorplan Financing Growth with DLL
Looking ahead, DLL envisions substantial growth opportunities within the power sports industry, leveraging its expertise and floorplan financing solution. We are committed to not only meeting the current needs of manufacturers and dealers but also anticipating and addressing the evolving landscape of the market. Within the market, we have established a strong reputation as one of the few players capable of offering extensive geographic coverage and providing floorplan services in markets beyond Canada. Our strength lies in our flexibility to offer manufacturers adaptable and long-term programs that can navigate industry cycles successfully. This has become particularly crucial in the current market landscape where rising prices and potential issues with line sizes challenge dealers to stock the right amount of inventory. Recognizing the need for an additional floorplanning solution for dealers during this time, we aim to address challenges posed by inflation and prolonged inventory stays on lots. We see an opportunity to provide industry-level solutions, offering dealers and manufacturers a competitive alternative to traditional financing companies.
Join Us at AIMExpo – February 6-8
As a testament to our dedication to growth and active participation in the industry, our team is gearing up to attend the upcoming AIMExpo, taking place from February 6 to 8 in Las Vegas. AIMExpo stands out as North America's largest Powersports Tradeshow with a global reach, offering a progressive and comprehensive B2B platform that fosters connections among exhibiting brands, distributors, dealers, media, and manufacturers, thereby accelerating opportunities. This annual event draws influential leaders in the powersports industry who are driven to advance the business. Whether you are a manufacturer in search of strategic financial partnerships or a dealer seeking flexible solutions, our experts will be present to discuss and explore how DLL can contribute to your growth objectives.
Mike Malone, Head of Global New Business & Product Development, emphasized the significance of industry events, "Attending events like AIMExpo is an exciting opportunity to engage with industry leaders and showcase DLL's vision for the future. It goes beyond financing; it's about collectively shaping the trajectory of the power sports market." We look forward to seeing you there!
McColloch, Douglas. "2023 Powersports Market Trends: Growth Is the Outlook." SEMA, 16 Jan. 2023, [URL: https://www.sema.org/news-media/enews/2023/16/2023-powersports-market-trends-growth-outlook].
Allied Market Research. 'Power Sports Market Size, Share, Competitive Landscape and Trend Analysis Report by Vehicle type (All-terrain vehicles, Side by side vehicles, Personal watercrafts, Snowmobiles, Heavyweight motorcycles), by Propulsion (Gasoline, Diesel, Electric), by Application (On-Road, Off-Road): Global Opportunity Analysis and Industry Forecast, 2023-2032.' [URL: https://www.alliedmarketresearch.com/power-sports-market-A11396].
Global Market Insights. 'Power Sports Market Size.', [URL: https://www.gminsights.com/industry-analysis/power-sports-market].
Sapatnekar, Jayee. "2023 Electric Powersports Market Trends: Exploring the Next-gen Models to Look Out For." Motorcycle & Powersports News, 9 Mar. 2023, [URL: https://www.motorcyclepowersportsnews.com/2023-electric-powersports-market-trends/].
.jpg?h=536&iar=0&w=1240&hash=306920EA99F7098AB17A3BE1861CB0CA)
