Powersports Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Vehicle Type:

Based on vehicle type, the market is segmented into All-terrain Vehicles (ATV), SXS, Motorcycles, Snowmobiles, Snow Bikes, Personal Watercrafts, Side-by-Side Vehicles, and Others.

Trends in the Vehicle Type:

• The growing culture of motorsports and organized racing events are contributing the powersports market demand.
• Prominent manufacturers such as Harley-Davidson, Ducati, and KTM actively market their heavyweight motorcycles through racing events and exhibitions, enhancing community engagement and boosting visibility. This competitive landscape motivates consumers to invest in high-performance bikes that provide both excitement and prestige.

All-terrain Vehicle (ATV) segment accounted for the largest revenue share of 28.51% in the year 2024 and is expected to register the highest CAGR during the forecast period.

• The segment growth can be attributed to the growing popularity of outdoor recreational activities and the rising enthusiasm for off-road sports events. These leisure interests cater to adventure and drive demand for high-performance ATVs. For instance, events such as the Mud Nationals, scheduled for 2025 at the Sabine ATV Park in Burkeville, Texas, has attracted thousands of off-road supporters, while providing a platform for global manufacturers to showcase their latest innovations and engage with a growing customer base.
• The increasing use of ATVs in agriculture is fuelling the market growth. ATVs are revolutionizing farming operations by facilitating quicker and more efficient tasks. Farmers utilize these vehicles for various functions, such as transporting tools, equipment, and supplies across extensive fields. Furthermore, ATVs are well-suited for carrying fertilizers, distributing feed to livestock, and hauling harvested crops. Their compact size and manoeuvrability enable them to reach areas that larger machinery cannot, ensuring a seamless workflow even in rough or uneven landscapes.
• The need for ATVs from defense organizations is propelling the global market. For instance, in December 2023, Ukrainian forces received 20 ATV battle trucks, also known as light tactical vehicles, provided by volunteers. The Operational Command South of the country’s armed forces has been supplied with these vehicles, which were entirely manufactured through the efforts of an unpaid workers movement supported by major industrial enterprises.
• These trends and analysis in agriculture and defense sector would further drive the Powersports market size during the forecast period.

By Fuel Type:

Based on the fuel type, the Powersports market is segmented into gasoline, diesel, and fuel.

Trends in the fuel type:

• The increasing awareness of environmental concerns is propelling the advancement of more sustainable alternatives, including electric vehicles and alternative fuels.
• The ongoing advancements in engine technology, electronics, and materials are improving performance, safety, and comfort in Powersports vehicles.

Gasoline segment accounted for the largest revenue share in the year 2024.

• The segment growth can be attributed to the growing demand of high performance and reliability associated with gasoline engines. Vehicles such as motorcycles, ATVs, and personal watercraft are renowned for their power and speed, delivering thrilling experiences that appeal to adventure seekers. The performance capabilities of gasoline engines frequently exceed those of electric alternatives, establishing them as the favoured choice for off-road and racing contexts where power and agility are critical.
• The extensive network of fuel stations and maintenance services offers consumers convenient options for refuelling and servicing their vehicles during outings. This accessibility significantly contributes to the sustained popularity of gasoline-powered vehicles, particularly in remote areas where electric vehicle charging stations may be scarce.
• Affordability is another key factor driving the need for gasoline-powered vehicles. Generally, these vehicles come with a lower initial purchase price compared to electric models, making them more attainable for a wider range of consumers. Additionally, maintenance and repair costs for gasoline engines are often reduced, further increasing their appeal to budget-conscious buyers.
• Thus, on the above factors such as focus on gasoline-powered vehicles and need for high performance further supplement the global market during the forecast period.

Electric segment is anticipated to register the fastest CAGR during the forecast period.

• Electric vehicles in adventure sports are anticipated to increase their market share throughout the forecast period, driven by the growing need for eco-friendly recreational options. As awareness of environmentally friendly issues expands, users are increasingly seeking sustainable alternatives to conventional gasoline-powered vehicles. Electric motorsports vehicles, such as electric motorcycles, ATVs, and personal watercraft, provide zero-emission operation, appealing to environmentally conscious riders who wish to reduce their carbon footprint while enjoying outdoor activities.
• Technological advancements are also pivotal in advancing the electric powersports market. Innovations in battery technology have greatly enhanced the range and performance of electric vehicles, making them more suitable for recreational applications. Improved motor designs and powertrain engineering deliver superior acceleration and torque, offering exhilarating experiences that rival those of gasoline-powered vehicles. These advancements not only attract traditional adventure sports enthusiasts but also expand the market to include new consumers who prioritize both performance and sustainability.
• For instance, in November 2023, Pure EV has introduced the Pure ecoDryft 350 electric motorcycles, which boasts a range of 171 km on a single charge. This electric bike merges sustainability with practicality, providing an extended range ideal for commuting. With an emphasis on eco-friendly transportation, the Pure ecoDryft 350 addresses the increasing need for electric motorcycles that harmonize environmental responsibility with efficient performance.
• Thus, increasing investments in electric segment would further drive the Powersports market trends during the forecast period.

By Application:

Based on the application, the Powersports market is segmented into off-road, snow, on-road, marine, commercial, and defense.

Trends in the application:

• As economies expand and disposable incomes increase, a greater number of individuals can invest in recreational activities and high-performance vehicles.
• The favorable government policies, including the establishment of off-road trails and recreational areas, have the potential to enhance the global market.

Off-road segment accounted for the largest revenue share of in the year 2024 and is expected to register the highest CAGR during the forecast period.

• The off-road vehicle industry is undergoing a significant transformation due to evolving consumer demographics and preferences. As reported by the Sports and Industry Fitness Association (SFIA), the percentage of the United States population participating in outdoor sports reached around 57% in 2023, indicating a rising interest in outdoor activities. This change in consumer behaviour has prompted manufacturers to create more advanced and feature-laden vehicles, with companies like BRP Inc. introducing premium models such as the Can-Am Maverick R in August 2023, which boasts a 240-horsepower engine tailored for motorsports enthusiasts.
• Consistent government support for the development and proliferation of electric vehicles (EVs) has been a key factor contributing to the robust sales of electric three-wheelers in the adventure sports vehicle sector. Consequently, several original equipment manufacturers (OEMs) are focusing on these regions to introduce their three-wheeler models and capitalize on the opportunities presented by emerging markets.
• For instance, in March 2023, Zen Mobility launched its electric cargo three-wheeler. The vehicle features Zen’s EV drivetrain technology, 24 Nm of torque, a 2kW motor, and a range exceeding 120 km.
• Thus, the global requirement for electric vehicles across the globe would further supplement the Powersports market share during the forecast period.