The United States snowmobile market is the largest in the world and is projected to account for sales of more than 80 thousand units at a value of over $653 million by the year 2012, as stated by Global Industry Analysts, Inc.
Scandinavia is the fastest growing market for snowmobiles both in volume and value terms and is projected to expand at CAGRs of over 4.4% and 8.5%, respectively, during the 2001-2010 analysis period. The increase in demand for snowmobiles in Scandinavia is due to the fact that snowmobiling is not just a leisure sport activity but also an essential means of transportation.
Apart from United States, which accounts for more than 52% of global demand for snowmobiles, Canada and Scandinavia are the other major markets for snowmobiles.
But the global snowmobiles market (http://www.strategyr.com/Snowmobiles_Market_Report.asp) is beleaguered by numerous environmental pressure groups, governmental regulations, and other health related issues with regard to harmful emissions of snowmobiles. In addition, the dry and hard unfavorable winter conditions in the past few years have worked to worsen the already bad situation. Several regions in the US and other European countries have already barred the use of snowmobiles, particularly in wildlife preservation areas such as national parks. The snowmobile industry is highly prone to cycles, with bursts of rapid growth, followed by long periods of recession.
Some of the factors that contribute towards growth in the snowmobile industry, other than cyclical and weather-dependent factors, include production redesign cycles, replacement buying by consumers, launch of four stroke engines, snowfall in key riding places, consumer confidence, discretionary spending by consumers, and the availability and affordability of credit. Current areas of interest include developing means to reduce emissions, providing quieter and cleaner 2-stroke and 4-stroke engines, and enhancing safety measures.
Many small players that emerged during boom times in the 1960s and 1980s have since disappeared. The existing manufacturers have established healthy relations and partnerships with dealers. The channels of distribution in the industry are particularly dependent on dealer networks, and a highly compact network of about 3,000 dealers restricts the entry of new players into the market.
Technical expertise is a major factor driving competition. Snowmobile manufacturers are offering sophisticated machines with advanced engineering capabilities. Investments required to match these technical capabilities restrict the entry of new players to a large extent. The market is also characterized by limited engine manufactures, of which few producers have exclusive supply contracts with major snowmobile manufacturers.
The report titled Snowmobiles: A Global Strategic Business Report published by Global Industry Analysts, Inc., provides a review of market trends and issues, product overview, regulatory and environmental concerns, competition, product introductions/innovations, and recent industry activity. The study also analyzes market data and analytics in volume and value sales for regions such as United States, Canada, Scandinavia, and Rest of World.
Key players dominating the global snowmobiles market include Arctic Cat, Bombardier, Polaris Industries, and Yamaha Motor.
For more details about this research report, see http://www.strategyr.com/Snowmobiles_Market_Report.asp