All-Terrain Vehicle Market Analysis

All-Terrain Vehicle Market Overview

The All-Terrain Vehicle Market Size was valued at USD 4.12 Billion in 2021. The All-Terrain Vehicle market industry is projected to grow from USD 4.63 Billion in 2022 to USD 8.79 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.32% during the forecast period (2024 - 2030). The increasing popularity of outdoor entertainment activities such as off-road sports, the growing number of trails & adventure parks, and the rising demand for all-terrain vehicles for military and agricultural applications are key factors driving the market growth. Increased purchasing power and disposable income in developed and emerging economies are expected to drive demand for such vehicles during the forecast period.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

All-Terrain Vehicle Market Trends

Growing Use of Advanced Technology Tools in Industry and Consumers' Inclination Toward Off-Road Recreation Activities In Developed Countries To Sets A Positive Trend is expected to drive market growth.

One of the primary aspects driving the all-terrain vehicle market growth is a rising customer inclination for off-road recreational activities and adventure sports. Suppliers are now supplying ATVs with GPS tracking and Bluetooth communication technologies, improving the driving experience. Additionally, various technical improvements, such as creating electric quad bikes and installing enhanced steering systems, hydraulic pump connections, joystick controls, and graphic displays in ATVs, are also helping drive the industry forward. A significant expansion in the tourist industry, growing urbanization, and rising consumer expenditure capacity are some variables that have a beneficial influence on the market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Additionally, the demand for ATVs from military organizations is propelling the market. Polaris Government & Defense, based in the U.S., donated a Sportsman Big Boss and MRZR and two ATVs and UTVs to Latvia. As part of a U.S. government program, these Polaris vehicles were expected to be delivered in 2020 for military uses. As a result, growing demand from the defense sector is boosting the market growth for these vehicles.

The demand for ATVs has increased for various farm-related activities such as weed removal, field plowing, fence repair, animal handling, and general transportation in the agriculture sector. All-terrain vehicles are used in various industries such as construction, manufacturing, utilities, search and rescue, and mining. Prominent firms provide sponsorships and organize off-road racing and adventure sports events to increase product recognition and win new consumers.

All-Terrain Vehicle Market Segment Insights

All-Terrain Vehicle, Vehicle Type Insights

The All-Terrain Vehicle market segmentation, based on Vehicle Type, includes Sports Utility, Utility, Recreational, Sports, Touring, and Others. The sports segment dominated the market with a revenue share of more than 45% in 2020. The sports segment holds the largest market share due to the rising number of sports events in developed and emerging economies. Governments across the region have raised budgeted allocations to construct new off-road vehicles, benefiting recreational enthusiasts and boosting adventure sports activities in the area.

The military & defense segment is expected to emerge as the fastest-growing market segment during the forecast period. It is due to an increasing preference for UTVs and ATVs by military forces worldwide. The increased demand for these vehicles in the military sector is primarily due to better mobility for tactical operations. Furthermore, the remarkable adaptability and navigational functions give vehicle operators precise directions. The military & defense segment accounted for a 16.33% market share in 2020.

All-Terrain Vehicle Application Insights

Based on Application, the All-Terrain Vehicle market segmentation includes Sports, Entertainment, Agriculture, Military, Hunting, and Others. The growing demand for utility all-terrain vehicles in agriculture and military & defense applications in various regions will fuel the market with the highest revenue share during the forecast period.

Figure 2:  All-Terrain Vehicle Market, by Vehicle type, 2021 & 2030 (USD Billion) 

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

All-Terrain Vehicle Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for USD 2.51 billion in 2020 and is projected to reach USD 3.25 billion by 2028, at a CAGR of 3.4% over the forecast period. North America led the market with a revenue share of over 45% in 2020. Some of the leading manufacturers of all-terrain vehicles, such as Polaris, Textron, BRP, and American Honda Motors, among others present in the U.S. and Canada are crucial in supporting the development of the market in this region. The U.S. and Canada are the top countries where usage of such vehicles has expanded significantly due to a developed economy, higher disposable income, electric vehicle initiatives, and government laws regulating ATVs. According to market analysis, the U.S. has the most significant share of this market, owing to strong military, agricultural, sports, entertainment, hunting, forestry, mining, and construction activities. The U.S. is anticipated to remain the region's leading market as demand rises gradually

Figure 3: All-Terrain Vehicle Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe is anticipated to register a CAGR of 6.3% from 2021 to 2028. The region is likely to see higher demand for ATVs throughout the projection period due to expanding demand for road vehicles in agricultural, military, and defense applications. The market demand is predicted to be boosted by establishing standardized safety requirements and test methodologies and improved rules governing emissions from non-road mobile machinery.

Asia Pacific is anticipated to see a considerable increase in demand for ATVs over the projection period. It is due to the large addressable market, increased military spending, and low-cost manufacturing. Major suppliers, such as Suzuki, Honda, Kawasaki, and Yamaha Motor Corporation in Japan are crucial elements supporting the market growth in this region.

All-Terrain Vehicle Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the All-Terrain Vehicle market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the All-Terrain Vehicle industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for All-Terrain vehicles. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the All-Terrain Vehicle industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the All-Terrain Vehicle industry to benefit customers and expand the market sector. The All-Terrain Vehicle market has recently given medicine some of the most important advantages. Major hair care product market players, including Polaris Industries Inc. (U.S.), Yamaha Motor Company Limited (Japan), Bombardier Recreational Products (Canada), and others, are attempting to increase market demand by funding R&D initiatives.

About the company Yamaha Motor Co., Ltd. is a Japan-based company mainly engaged in the manufacture and sale of motorcycles, marine products, special machinery products, industrial equipment, and robots. The Company operates in four business segments. The Two-wheel Vehicle segment is engaged in the manufacture and sale of motorcycles, intermediate parts, and parts for overseas production. The Marine segment is engaged in the manufacture and sale of outboard engines, water vehicles, boats, pools, fishing boats, and Japanese-style boats. The Special Machinery segment is engaged in the manufacture and sale of four-wheel buggies, recreational off-highway vehicles, golf carts, generators, snowplows, and general engines.

Also, BRP designs develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after shuttering the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers.

Key Companies in the All-Terrain Vehicle market include

• Honda Motor Company, Ltd. (Japan)


• Polaris Industries Inc. (U.S.)


• Yamaha Motor Company Limited (Japan)


• Bombardier Recreational Products (Canada)


• Arctic Cat (U.S.)


• Kawasaki Heavy Industries Ltd. (Japan)


• Suzuki Motor Corporation (Japan)


• CFMOTO Powersports Inc. (U.S.)


• KTM AG (Austria)


• BMW (Germany)

All-Terrain Vehicle Industry Developments

In March 2023, Polaris Inc. unveiled its RZR Pro R Factory which is a utility-terrain (UT) vehicle designed specifically for competitive racing. This custom-built outing machine has been engineered meticulously to deliver top-notch performance under intense desert racing conditions. The primary purpose behind the introduction of the RZR Pro R Factory was to enable racers to have a race-ready vehicle that will be perfect on any demanding track during off-road races.

May 2023 Polaris Inc. had launched the 2024 XPEDITION XP and ADV models as the first in a new category that they are calling ‘Adventure side-by-sides’. These advanced vehicles combine traditional side-by-side off-road capabilities with abundant, secure storage for overland adventures at premium levels of convenience. The purpose of creating these two models was to reiterate Polaris’ commitment to offering a rugged performance yet high-comfort adventure vehicle that would meet all off-road lovers’ needs without any restriction.

In January 2022, John Deere introduced two additional products which include: XUV835R Gator Utility Vehicle and XUV865R Gator Utility Vehicle. John Deere’s aim with these new models was to give customers an enhanced range of features and an upgraded overall experience so that their utility vehicle requirements can be met better.In September 2021, Yamaha rolled out Grizzly 90, a sports model purposely made for young people of ten years old and above. This youth-focused ride houses an air-cooled wet-sump lubricated low maintenance engine rated at only 90cc for optimum performance.In June 2021 Kawasaki released BRUTE FORCE 750 4x4i, an off-roader meant for adventurous outdoor activities. It is fitted with a fuel injected V-twin engine capacity of up to 749 cc giving this unit excellent power on tough terrains. Among other things it comes stocked with are a front differential lock, selectable drive settings including low range and high range, as well as continuously variable transmission (CT) which enhance grip and, in turn, the overall performance.

All-Terrain Vehicle Market Segmentation

All-Terrain Vehicle, Vehicle type Outlook

• Sports Utility


• Utility


• Recreational


• Sports


• Touring


• Others

All-Terrain Vehicle Displacement Outlook

• Low


• Mid


• High

All-Terrain Vehicle Application Outlook

• Sports


• Entertainment


• Agriculture


• Military


• Hunting


• Others

All-Terrain Vehicle Regional Outlook

• 
  
  Middle East
  
  


• 
  
  Africa
  
  


• 
  
  Latin America