|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The off-road vehicle market was valued at USD 14.81 billion, and it is expected to reach USD 18.87 billion in 2027 by registering a CAGR of 4.12% during the forecast period (2022 - 2027).
The COVID-19 pandemic had a negative impact on the market as lockdowns and travel restrictions resulted in a slowdown in demand. However, post-pandemic, as restrictions eased, recreational and sports activities started seeing positive trends, owing to which the demand for off-road vehicles is expected to restore back over the forecast period.
The growing popularity of off-road sports and the need for robust, compact equipment is elevating the necessity of off-road vehicles. Moreover, as off-road vehicles have a wide range of users across the agriculture, mining, construction, and other sectors, those are expected to witness optimistic growth. Additionally, minimal maintenance costs, reduced fuel consumption, and low insurance costs will aid the demand for these vehicles in the construction industry.
As most the ATVs and UTVs are not permitted to be operable on highways and other main roads, government authorities across the world have increased the budgetary allocations to build new off-road trails that may be helpful for recreational enthusiasts and boost adventure sports activities in several regions across the world. This is expected to drive the market studied. In addition, companies are also focusing on introducing new products with improved features to attract more customers and gain a competitive position in the market.
New technological developments such as electric drive trains will create new growth opportunities for the off-road vehicles market. The growing popularity of electric off-road vehicles owing to the rising emission concerns will spur the off-road vehicles industry.
North America is expected to remain the largest market for off-road vehicles, followed by Europe, owing to growing consumer demand in the region. Asia-Pacific is expected to witness the fastest growth in the off-road vehicle market, owing to the high adoption rate and the booming automotive sector, leading to increased production of off-road vehicles, especially in China and India.
Scope of the Report
Off-road vehicles are specially designed vehicles used for driving on rugged roads and off-highway applications. The vehicles provide improved traction, durability, and power outputs compared to regular vehicles. Off-road vehicles have a wide range of users across agriculture, mining, construction, and other sectors.
The off-road vehicle market report covers the latest trends, COVID-19 impact, and technological developments in the market. The scope of the report covers segmentation based on vehicle type, application, and geography.
By vehicle type, the market is segmented into utility task vehicles (UTV) and all-terrain vehicles (ATV). By application type, the market is segmented into sports, agricultural, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done on the basis of value (USD billion).
|By Vehicle Type|
|All-terrain Vehicle (ATV)|
|Utility Task Vehicle (UTV)|
|Rest of the World|
Key Market Trends
The All-Terrain Vehicle Segment is Likely to Witness Significant Growth
The ATV market is growing swiftly, as vehicle manufacturers are developing ATVs for many end-use applications. People’s increasing interest in sports activities and recreational activities has emerged as a significant driving factor for the segment. Moreover, manufacturers' interest in frequent advancements in the development of various eco-friendly vehicle versions is likely to boost the market.
- In April 2021, Arctic Cat announced a new ATV as part of its model year 2022 line-up for dealerships in July. The new Alterra 600 EPS features an all-new engine, drivetrain, and chassis offering, with increased power, better handling, and easier servicing. The launch of the ATV coincides with Arctic Cat’s 60-year anniversary of bringing new and innovative products to power sports.
- In September 2020, Yamaha unveiled its latest ATV models, Grizzly 2021 and Kodiak 700 and 450 models. The company unveiled its 2021 Youth ATV lineup, including the Grizzly 90 in Armor Gray (USD 3,099 MSRP), Raptor 90 in Team Yamaha Blue and White (USD 3,099 MSRP), and YFZ50 in Team Yamaha Blue and White (USD 2,199 MSRP).
- In September 2020, Polaris made an announcement that they are entering into a joint venture with Zero motorcycles to develop electric ATVs and snowmobiles.
- ATVs’ market share is projected to witness steady growth, owing to the change in the rules and regulations that govern and define the standards in the way ATVs are used. Regulatory authorities, such as the California-based non-profit organization and the All-terrain Vehicle Safety Institute (ASI), determine proper ATV usage regulations and promote approved products and accessories, such as seatbelts, footrests, helmets, and kill-switches.
To understand key trends, Download Sample Report
North America is Expected to Hold a Prominent Share in the Market
The North American region is anticipated to hold a significant share in the off-road vehicle market during the forecast period. Despite the pandemic, in 2020, the North American market had a very successful year in sales, with significant growth seen in all-terrain vehicles as the preference for sports and recreational activities rose among youth.
The increasing recreational expenditure and the increasing number of off-roading events are the factors driving the ATV market in the region. Furthermore, the availability of a wide range of products across varied prices is anticipated to enhance the growth during the forecast period.
- In March 2021, Polaris Inc. announced that it plans to launch its first full-size off-road electric RANGER UTV with a Zero Motorcycles powertrain.
- In June 2020, Kawasaki unveiled the 2020 line-up for its MULE and ATV range of vehicles. It consists of the Brute Force ATV line-up, MULE PRO, and SX series.
- In order to reduce the impact of the hindrances, the regulatory authorities, including the Recreational Off-Highway Vehicle Association (ROHVA), the United States Consumer Product Safety Commission (CPSC), and the US Environmental Protection Agency (EPA), established numerous regulations regarding the usage of ATV and occupant safety. Thus, government initiatives and the growing interest of the youth in recreational events are the factors expected to drive the growth of the off-road vehicles market in the region during the forecast period.
To understand geography trends, Download Sample Report
The off-road vehicle market is moderately consolidated due to the presence of numerous players in the market. The key market players in the industry emphasize introducing new products and technologies to attract customers worldwide.
- In March 2021, Arctic Cat announced the launch of the 2022 snowmobile line-up. The line-up is the new Thundercat, offering electronic power steering (EPS) for the first time on a high-performance, turbocharged sled. The BLAST line-up welcomes two new sleds to the family with the addition of the BLAST XR 4000 and BLAST XR Touring 4000, the first mid-sized touring sled.
- In November 2020, American Landmaster revealed its all-new line-up of 2021 side-by-sides called the Landmaster. The 2021 Landmaster UTVs are equipped with over 30 new customer and dealer-inspired features, a best-in-class suspension system, automotive-grade components, and a weather-sealed electrical system.
- In March 2020, The Kubota RTV-X launched full-size diesel UTVs that include hydraulic-lift cargo boxes, 1100-pounds of the cargo-carrying capacity, and 1300 pounds of towing capacity. The 2020 line-up includes RTV-X900, RTV-X1120, RTV-X1100C, and RTV-X1140. The RTV-X UTVs are powered by three-cylinder liquid-cooled diesel engines with 21.6 horsepower for the RTV-X900 and 24.8 horsepower for the other three.
- Some of the major players, like Arctic Cat, Polaris Industries, and Bombardier Recreational Products (BRP), captured significant shares in the market. Electric ATVs and UTVs are expected to offer lucrative opportunities for players in the industry over the coming years.
- In March 2021, BRP planned to invest USD 300 million over the next five years to electrify its existing product lines by the end of 2026. BRP is developing its Rotax modular electric powerpack technology in-house, which may be leveraged across all product lines.
- In March 2021, Honda revealed the 2021 versions of its smallest ATVs - the FourTraxRecon multipurpose model and TRX250X sport model.
- In February 2021, Yamaha Motor Corp announced its line-up of proven Off-Road 2021 Sport ATV models, featuring the championship-winning YFZ450R and big-bore powerhouse, the Raptor 700R, and Raptor 700 models, now with a CARB-compliant variation.
- In January 2021, Polaris launched additional models for the 2021 line-up. Five new models will help complete the line of Polaris off-road vehicles for 2021. Two new RZRs (Trail and Trail S), two new Rangers (Big Game Edition and Waterfowl Edition), and a Sportsman 850 Ultimate Trail model have been released to round out the 2021 model line.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 All-terrain Vehicle (ATV)
5.1.2 Utility Task Vehicle (UTV)
5.2 By Application
5.2.3 Other Applications
5.3 By Geography
5.3.1 North America
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Polaris Inc.
6.2.2 BRP Inc.
6.2.3 Honda Motor Company
6.2.4 Yamaha Motor Corporation
6.2.5 Arctic Cat Inc.
6.2.6 Kawasaki Motors Corp.
6.2.7 Suzuki Motor Corporation
6.2.8 American LandMaster
6.2.9 Kwang Yang Motor Co. Ltd
6.2.10 Kubota Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Off-road Vehicle Market market is studied from 2018 - 2027.
What is the growth rate of Off-road Vehicle Market?
The Off-road Vehicle Market is growing at a CAGR of 4.12% over the next 5 years.
What is Off-road Vehicle Market size in 2018?
The Off-road Vehicle Market is valued at 14 Billion USD in 2018.
What is Off-road Vehicle Market size in 2027?
The Off-road Vehicle Market is valued at 18 Billion USD in 2027.
Which region has highest growth rate in Off-road Vehicle Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Off-road Vehicle Market?
North America holds highest share in 2021.
Who are the key players in Off-road Vehicle Market?
Arctic Cat Inc., Polaris Inc, Yamaha Motor Co., Ltd., BRP Inc., Honda Motor Company are the major companies operating in Off-road Vehicle Market.