North America Power Sports Market Value is estimated to be over USD 13.5 billion in 2019 and is expected to register lucrative growth between 2020 and 2026 at a CAGR of over 4.5%.
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The Market is witnessing a high growth due to consumer engagement in recreational and racing activities in the U.S. The region offers advanced infrastructure & space for sporting & recreational activities further encouraging the industry growth. The increasing usage of ATVs and UTVs for leisure and farming purposes owing to efficiency benefits is supporting the high demand for power sports. The demand is also attributed to rising awareness of consumers in the farming & forestry sector related to UTVs. Additionally, rapid rise of the travel & tourism industry across the U.S. promotes the usage of snowmobiles & personal watercrafts and market expansion.
Government support for development of the market, such as enhancement of recreational infrastructure including racetracks, recreational parks, and boating places, is a major driving factor. The industry was highly impacted by the widespread of COVID-19 in the first quarter of 2020 in the U.S. and Canada. Restrictions on social gatherings, cancellation of racing events, and limited period lockdowns to prevent the spread of coronavirus have lowered the sales of power sports products. However, the industry has witnessed demand from the young consumer segment over this period due to temporary closure of colleges and universities, compelling families to spend on power sports-based activities.
Side-by-side vehicles (SxSs) or UTVs have accounted for a major share in the market owing to their usage in farming for transporting supplies, raking, and plowing fields. The demand for SxSs is increasing in the U.S. due to constant improvements in product features. Improved suspension, multiple drive modes, and four-wheel disc brakes support their usage in varying ground conditions. The manufacturers are working on developing vehicles with safe parts along with accessories to ensure high user safety. In addition, leading industry players are making investments in R&D activities to lower the cost of ownership for these vehicles, aiding market growth.
The U.S. accounts for around 90% of the market share in the market owing to the increasing consumer disposable income and rising outdoor recreational spending. Major players operating in the U.S. power sports market include Arctic Cat, BRP Inc., Honda Motor Co. Ltd., Harley Davidson, Polaris Industries, Inc., John Deere, Kawasaki Motor Corporation, Yamaha Motor, Kymco, and Kubota.
Companies launch new power sports vehicles with enhanced features to meet the consumer needs majorly in North America. For instance, in November 2019, the company announced the launch of its Polaris Ranger Diesel, which is a result of two years R&D including various entities such as dealers, engineers, technicians, customers, etc. The industry is dominant in the region owing to the presence of all major manufacturers, dealers, and service providers.