Adventure Tourism Market Expected to Reach $1,796,243.8 Million by 2027, at a Growing CAGR of 15.0% - Research DiveDownload Sample Reports Overview
According to global adventure tourism market analysis by Research Dive, the global market forecast will be $1,796,243.8 million till 2027, at a 15.0% CAGR, growing from $609,000.0 million in the year 2019.
Adventure Tourism Market, COVID-19 Effect:
The coronavirus has affected the overall adventure tourism market in a negative way due to tourism restrictions implemented by the government bodies to curb virus spread. Nevertheless, key market leaders are implementing various growth strategies such as new trips and new technologies to attract more travelers. For example, in February 2020, Intrepid introduced new women-only expeditions across the Israel, Palestinian and Pakistan territories to meet gender equality goals to coincide with International Women’s Day. These new expeditions will add new destinations to the existing travel trips of Jordan, Iran, Nepal, Morocco, Kenya, India and Turkey. The company has resumed these women only travel trips from August 2020 onwards and it is introduced these women-only expeditions due to increasing customer demand.This factor is expected to propel the market growth in the upcoming years.
Adventure Tourism Market, Overview:
Adventure travelling is an expedition around wildness, venturing in rural areas, exploring the wilderness and travelling out of comfort zones. Travelers experience a deeper connection with nature and wildlife when they participate in adventurous sports. Adventure travel has gained momentum among adults as the journey offers thrill, excitement and new experiences. These factors will further drive the growth of the market in the forecast years. In addition, continuous incorporation of advanced technologies such as artificial intelligence, internet of things, and other innovative technologies will increase the customer base. This is expected to be a major opportunity for the market growth in the coming years. For example, tour operators are using AI chatbots to provide required information to customers related to budget, adventure activity and others. Travel operators are replacing humans with chatbots that are designed for personalized and customized experience for the customers. The intervention of technology will stimulate the growth of the adventure tourism market in the forecast years. However, potential risks related to adventure travelling such as climate variations and other factors are projected to hamper the growth of the market in the forecast period.
Adventure Tourism Market; Segmentation:
Hard type occupied the second position after soft in the adventure tourism market in the year 2019 and is anticipated to rise at a notable CAGR of 15.2% in the review time. Hard adventure travel mostly includes sports activities such as climbing, kayaking and trekking that involve certain risk as well as experience. Increasing demand for hard adventure travel majorly in young population will significantly drive the market growth in the forecast period.
Water-based activities registered the second largest market size in the past yearsand is anticipated to grow at a CAGR of 15.8% during the prediction time. Rising demand for water-based sports and activities like kayaking, rafting, scuba diving, and cruising arepredicted to fuel the growth of the industry. Furthermore, adventure tour operators are focusing on incorporation of new technologies such as IoT devices to provide advanced features to customers, which is predicted to spur the growth of the market in the estimated period.
In 2019, couple sub-segment accounted for second highest market share based on type of traveller segment and is predicted to rise at a CAGR of 16.6% during the estimated time. Most couples are interested in adventure travelling to try new things and explore different activities. In addition, new and thrilling experiences with partner reignite the relationship. This factor is predicted to accelerate the growth of the industry in the forecast time.
Below 20 years age group sub-segment registered for leading market size in the year 2019 and and is estimated to grow in the prediction period. This growth is majorly attributed to 20 years age group travelers beinginterested in adventure travel that can help with overcoming physical as well as personal obstacles through new experiences. This factoris projected to propel the sub-segment market growth in the analysis period.
Asia-Pacific region was the second highest revenue contributor to adventure tourism market in the 2019 and is estimated to rise at a fastrate of 15.9% CAGR during the forecast time. Growing interest of people in adventure travel for cultural exchange across the Asia-Pacific region especially in China, India, Australia can be seen as a huge opportunity for the market growth in the forecast time. For instance, in India, demand for local experiences and adventure activities has grown about 175% over the past three years. These factors are projected to impel the market growth in the upcoming years.
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Adventure Tourism Market, Significant Market Players:
Significant adventure tourism market players include Abercrombie & Kent USA, LLC., G Adventures, Austin Adventures, Intrepid Group, Lindblad Expeditions, ElderTreks, Recreational Equipment, Inc., Topdeck Travel Limited, Butterfield & Robinson Inc. and MTSOBEK.
Porter’s Five Forces Analysis for Adventure Tourism Market:
- Bargaining Power of Suppliers: Adventure tourism industry has high number of large and small & medium sized dealers and significant players are designing more adventure trips are delivering a Moderate power of suppliers.
- Bargaining Power of Consumer: This market has a huge concentration of consumers and high demand due to rising consumer’s interest on adventure travel resulting in High bargaining power of consumers.
- Threat of New Entrants: Presence of significant participants and new participants are offering new trips for low prices are bringing Moderate threat for new contestants in the market.
- Threat of Substitutes: Adventure tourism market has moderate number of alternatives, and therefore there is minimal risk of alternatives. The risk of alternates is LOW.
- Competitive Rivalry in the Market: The market has huge number of key participants. These key participants are concentrating on various strategies such as joint ventures, geographical expansions and new product developments to gain the highest market share. The competitiveness in the market is HIGH.