THE SHOP

October '20

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6 THE SHOP OCTOBER 2020 EDITOR'S NOTE: This is the second in a two- part series on the crossover potential of the powersports market. Part I appeared in the September 2020 issue of THE SHOP. T he global utility terrain vehicle (UTV) market—projected to be valued at more than $9 billion by 2025—has expe- rienced explosive growth in recent years, with the sport side-by-side segment igniting fresh passion for powersports, welcoming new enthusiasts to the lifestyle and fueling the aftermarket as well. The U.S. in particular has dominated the UTV market, with brands like Polaris, Bombardier Recreational Products (BRP) and Honda, among others, leading the way with exciting new models that appeal to America's off-road culture. From the RZR and Talon to Maverick X3 and Teryx KRX 1000, healthy competition ensures enthusiasts have the power of choice. Though sport models—most common in the West—remain a fast-growing seg- ment, Global Market Insights Inc. points to utilitarian demand for multipurpose off- road vehicles in construction, agriculture, forestry and landscape-type settings as pro- pelling significant UTV market expansion. "Multipurpose vehicles comprise the largest segment of UTV sales, with the highest volume residing in the South. Owners seek ultimate versatility with their vehicles and modifications," according to a report from the Specialty Equipment Market Association. As a result, North America, the world's largest market, has a compound annual growth rate of 4.81% during the forecast period (2020-'25)—on top of the $6 billion it claimed in 2019. Growth in the powersports market spells crossover sales for the automotive aftermarket, as research indicates most households with a UTV also own a truck or SUV capable of transporting the unit to a preferred destination for use. Subse- quently, about 18% of owners purchase accessories for their tow vehicles as a direct result of purchasing a UTV, affirms Mike Imlay, author of Powersports Market Trends: Remaining Tough and Agile Amid a Chal- lenging Environment for SEMA. Of particular importance, he notes: • SEMA research confirms about 82% of UTV owners take an interest in upgrading and accessorizing their vehicles, with accessory decisions made early and most purchases occurring within the first three months (often at dealerships or directly through the SPECIAL REPORT: POWERSPORTS POWERSPORTS SPECIAL REPORT: Pinpointing opportunities & sales strategies for crossover success. Honda Off-Road Factory race Talons met the brutal challenges of desert racing head-on in the 24th annual Best in the Desert Vegas to Reno. (Photo courtesy Bink Designs) GO FOR A RIDE By Stefanie Galeano-Zalutko

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