Asia Pacific Power Sports Market Growth is estimated to be over USD 8 billion in 2019 and is expected to register lucrative growth between 2020 and 2026 at a CAGR of over 6%.
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The increasing disposable income level in Asian countries including India, China, and Australia is aiding to the powersports market growth. The Asian consumers are gaining knowledge related to the utilization of ATVs and UTVs in utility and farming applications. These factors along with the expansion of prominent American and Indian manufacturers in India, South Korea, and other South Asian countries will propel the market development. Initiatives including Make in India aim at strengthening the manufacturing sector and reducing unemployment, supporting the setup of production facilities of global power sports players. Additionally, rapid increase in consumption of heavyweight motorcycles by riding professionals and youth in recent years has resulted in power sports demand.
Increased adventure sports activities due to tourism growth across the Asian countries support the demand for personal watercrafts and snowmobiles. The countries including Thailand, Singapore, Malaysia, and Indonesia witness high entry of tourists every year owing to natural parameters and presence of several beaches. The trend of water sports on seacoasts and high tourist participation is supporting the sales of watercrafts in the market. However, the outbreak of coronavirus in Asian countries has impacted the tourism and recreation industry, further reducing the power sports vehicle sales. The industry is expected to recover in the coming years with the reduction in COVID-19 impact and rise in racing & power sports activities.
The personal watercrafts (PWCs) are gaining popularity due to their lower initial cost compared to other crafts used in water sports activities. The compact size of personal watercrafts allows for easier towing and parking capabilities. Additionally, the lower weight contributes to enhanced power-to-weight ratio and improves the craft efficiency significantly. The high speed of PWCs and improved cornering abilities enhance the craft maneuvering capabilities in water, supporting their adoption. The compact footprint of the craft allows for easier towing and parking capabilities. The lower weight contributes to enhanced power-to-weight ratio and improves the craft efficiency significantly. Furthermore, companies are developing safety-integrated and lightweight personal watercrafts to offer efficient usage in water sports.
China accounts for over 35% of the market share in market owing to the increasing adoption of UTVs in agriculture industry. Consumer prefer to purchase these vehicles over large tractors due to its compact size and greater efficiency.
Prominent companies in the market are BRP Inc., Polaris Inc., Honda Motor Co., Ltd., Kawasaki Motor, Yamaha Motor, and Kubota, among others. Industry players, such as Polaris and BRP, are expanding their distribution channels to capture industry share in the emerging Asian market. Players including Honda Motors and Kubota are focusing on reducing the product cost to improve their economies of scale and enhance the consumer base. These companies are making huge R&D investments to develop low-cost products specifically for the Asian market.