The global power sports market size is estimated to be valued at USD 40.03 Billion in 2025. It can reach a valuation of USD 59.79 Billion by 2032, by exhibiting a CAGR of 5.9% throughout the forecast period (2025-2032).  

The high customer disposable income levels and the opening of outdoor recreational areas can drive the market growth. The shift to electric vehicles can provide new expansion opportunities for the market.

However, emissions by gasoline-powered vehicles and adherence to stringent emission regulations can hinder the market growth.

Key Market Insights

The power sports market is predicted to be shaped by high-performance recreational vehicles, improvements in lithium-ion battery technology, and the rise of shared mobility services.

• By vehicle, the ATVs segment is expected to capture a 20% share of the market in 2025. The popularity of ATVs in outdoor sports and recreational activities can drive the segment growth over the forecast period. Investments in ATV rentals signify the huge potential for the segment in the coming years.
• By propulsion, the electric segment is anticipated to retain 14.0% market share in 2025. The segment growth can be attributed to interest in eco-friendly alternatives. The focus of manufacturers on increasing the power and battery range of electric power sports vehicles can culminate in the launch of new products in the power sports market.
• By application, the commercial segment is anticipated to have a significant market share in 2025. The demand for diesel-run vehicles and side-by-side vehicles in the forestry and agriculture sectors can drive the segment growth over the forecast period.
• By region, Europe is projected to follow after North America in 2025. This can be attributed to strong demand for motorcycles and watercraft. The inclination towards touring expeditions and motorsport events can drive the demand in the region.

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Power Sports Market Report Coverage

Market Dynamics

The investment of the youth in extreme sports and recreational activities can drive the power sports market growth. The large fan following and the imitation of race car drivers can benefit the sales of power sports vehicles. The development of designated zones for recreational activities can also enable the market growth over the forecast period.

The influence of YouTube and other entertainment channels can have a profound impact on the power sports market. Manufacturers are employing the use of augmented reality and virtual reality to provide immersive user experiences. Virtual tracks and environments are enhancing the appeal of power sports and are likely to influence their buying decision of power sports vehicles. For instance, Avicar’s Remote Reality enables racers to control physical cars remotely. It partnered with Siemens Advanta on March 09, 2023, to enable race simulation and garner interest among racers.

Market Opportunity: Customization in Power Sports Vehicles and Accessories

The customization of power sports vehicles for upgrading performance and comfort can augur favorably for the market. Original equipment manufacturers can enter into partnerships with accessory manufacturers for the development of custom covers and accessories for the riders. Additionally, the addition of custom seats to suspension upgrades for increasing the performance of vehicles can be a lucrative opportunity in the making.

Market Challenge: Stringent Power Sports Vehicle Regulations

The ban on ATVs made for children under 12 can complicate matters for manufacturers. The strict regulations passed on November 13, 2024, by the state of Minnesota, for instance, include an outright ban on power sports vehicles and gear. This can lead parents to buy larger-sized vehicles that are not suited for children and may lead to further injuries. In addition, the recall of power sports vehicles due to their adverse risks to injuries can pose a major challenge to the market growth.

Analyst’s View

• The demand for off-road applications and leisure activities can drive the power sports market growth.
• The electric segment is anticipated to perform exceptionally in 2025 owing to the adherence of eco-friendly practices and concerns of the environmental impact of fuel-powered vehicles.
• The shift to electrification and green energy can direct the key players towards new opportunities.

Recent Developments

Empery Digital Inc. announced its new distributor, Electric Wheels Ltd., on January 09, 2025. This allows the manufacturer to enter the U.K. and European markets and increase its reach.

Competitor Insights

• Kawasaki Heavy Industries, Ltd.
• Harley Davidson Inc.
• Kawasaki Heavy Industries
• KTM AG
• Kwang Yang Motor Co.
• Arctic Cat Inc. (a subsidiary of Textron Inc.)
• Polaris Industries Inc.
• Yamaha Motor Co., Ltd.
• Textron Inc.
• Kubota Corporation
• BRP Inc.
• Suzuki Motor Corporation
• John Deere
• Honda Motor Co., Ltd.

Market Segmentation

• By Vehicle
• Heavyweight Motorcycles
• ATVs
• Side-by-side Vehicle
• Personal Watercraft
• Snowmobiles
• By Propulsion
• Gasoline
• Electric
• Diesel
• By Application
• Recreational
• Leisure Activities
• Sports Events
• Commercial
• Agriculture
• Military
• Law Enforcement

Regional Insights

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Europe
  • Italy
  • Germany
  • U.K.
  • Spain
  • Russia
  • France
  • Rest of Europe
• Asia Pacific
  • South Korea
  • India
  • China
  • Japan
  • Australia
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • GCC Countries
  • Israel
  • Rest of Middle East
• Africa
  • South Africa
  • North Africa
  • Central Africa