Global All-terrain Vehicle Market Size, Share & Industry Trends Analysis Report By Application (Recreational, Sports, Military & Defense and Agriculture), By Engine Type, By Regional Outlook and Forecast, 2021 - 2027
The Global All-terrain Vehicle Market size is expected to reach $3.8 billion by 2027, rising at a market growth of 4.2% CAGR during the forecast period.
A vehicle equipped with four low-pressure tires and handlebars is known as an all-terrain vehicle (ATV). Known for their sturdiness, off-road characteristics, and flexibility, they are deployed regularly in surveying, agriculture, forestry, sports, military, and other fields. ATVs are handled differently, and they require some instruction before they can be properly operated. These vehicles are typically utilized off-road, although only a few regions allow them to be driven on public roads. These have grown in popularity in recent years because they provide access to inaccessible locations and give a simple way of transporting supplies and equipment. They may even replace the conventional method of transporting a pack of animals. ATVs are also employed by the military, the marines, and the army's ground forces.
The key factors for the growth of all-terrain vehicles are an increase in demand for off-road vehicles and an increase in disposable income. The demand for this industry is fueled by the requirement for The agricultural sector has seen an increase in the demand for ATVs for different farm-related activities such as weed management, fence repairing, field plowing, basic transportation, and animal handling. Manufacturing, construction, utilities, mining, and search and rescue are just a few of the industries that use them. Several major corporations are hosting adventure sports and off-road racing events, as well as offering sponsorships, in order to attract new customers and raise product awareness.
Owing to its widespread use in sports and military applications, demand for gasoline-based ATVs has skyrocketed. For cargo handling and forceful hauling, heavy-duty ATVs are typically equipped with diesel engines. Electric all-terrain vehicles are becoming more popular in Europe and North America as a viable alternative to diesel and gasoline-powered ATVs. Fluctuating gasoline and diesel prices, as well as environmental concerns, are expected to fuel demand for electric vehicles around the world. Electric all-terrain vehicles now have a performance edge over diesel and gasoline equivalents because of the development of powerful electric motors.
The COVID-19 pandemic proved to be a major roadblock to the growth of the market for all-terrain vehicles. Various assembly and production plants were forced to close temporarily due to the shutdown and limitations by authorities. Due to the upcoming waves of the pandemic, lower automotive sales are likely to further stifle the ATV market, limiting the market growth. However, rising demand for leisure activities around the world is expected to boost the market growth. The all-terrain vehicle market, notably in North America and Asia Oceania, was favorably impacted by the COVID-19 pandemic. The pandemic had a huge impact on multiple countries, resulting in lockdowns and the suspension of power sports and recreational activities. But, the market is likely to develop in the future, with the resumption of a few motorsports and entertainment events in the coming months
Market Growth Factors
Rise in the number of adventurous and sport events
Each year, the number of outdoor events continues to rise. At the national level, sports authorities hold all-terrain vehicle tournaments with off-terrain ATVs in challenging conditions in various countries such as the U.S. and Australia. There are many sports events or racing events hosted across various nations of the world. For example, The World Off-Road Championship Series (WORCS) is one of the most popular racing events hosted in the US. A big agricultural and farm equipment company, John Deere, recently debuted UTV versions for farming uses. This is owing to the considerable demand for such vehicles among agricultural customers for diverse uses. For example, John Deere released an updated version of its iconic GatorTM Utility Vehicles (UVs) in September 2020.
Increasing Investment in R&D of All-Terrain Vehicles
Manufacturers of all-terrain vehicles are increasingly adopting technologies linked to electric ATVs. Firms in leading markets for electric ATVs, such as China, the United States, and Germany, are spending extensively on off-road vehicle R&D activities. Since original equipment manufacturers are under a lot of pressure to reduce greenhouse gas emissions, owing to new rules established by nations across the world, the majority of this investment is likely to go towards the development of electric cars, which also applies to the all-terrain vehicle industry. For example, Polaris will debut its electric ATV, the Ranger XP Kinetic, in 2021, which was created in conjunction with Zero Motorcycles. It features a 14.9kWH battery that allows it to travel 45 kilometers on a single charge.
Market Restraining Factors
Lack of Safety and Government regulations
Buyers and manufacturers are most concerned about the safety of passengers and vehicles. Every regulatory authority in the world has the singular aim of enhancing the safety of drivers and citizens by augmenting the safety characteristics of each vehicle. An all-terrain vehicle's speed, navigation, and other statistics are frequently monitored by drivers. Any distraction or ignorance on the part of the operator could result in a serious mishap. When an all-terrain vehicle flips or rolls over, the most typical of these occurs. When this happens, the ATV driver and passenger may be thrown out of the vehicle or even trapped inside it. All-terrain vehicles are not designed to transport passengers in the back, yet there is a frequent misunderstanding about this.
Based on Application, the market is segmented into Recreational, Sports, Military & Defense and Agriculture. The recreational segment acquired the largest revenue share in the ATV market in 2020. The growing popularity of hiking and camping activities can be attributed to the growing demands for ATVs for recreational purposes. People are easily able to reach remote and henceforth inaccessible areas using their ATVs. Additionally, government initiatives to promote ATVs, such as providing incentives to those who participate in off-road and rough terrain sports, are likely to drive market expansion throughout the forecast period. The Oregon Parks & Recreation Department, for example, launched an ATV grant program in 2017 to help with emergency medical services, law enforcement, operation and maintenance, and property acquisition.
Engine Type Outlook
Based on Engine Type, the market is segmented into 400cc-800cc, below 400cc, and above 800cc. The above 800 cc segment observed a substantial revenue share in the ATV market in 2020. Demand for ATVs with engines larger than 800cc is expected to rise due to the growing popularity of off-trailing events and activities. Vehicles with increased engine movement capacity are required for off-trailing sports and activities to give enhanced torque performance, allowing players to obtain a competitive advantage. Improved ATVs would allow for competitive desert race events and tough terrain, resulting in a surge in demand for ATVs with engine capacities of 800cc and higher. Polaris, for example, released two ATVs in October 2018, the Sportsman 850 SP and the XP 1000. These ATVs have more ground clearance and suspension travel than other ATVs.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as the leading region in the all-terrain vehicle market with the largest revenue share in 2020. ATV adoption has increased significantly in the United States and Canada as a result of a variety of causes, including inhabitants' greater disposable income, the prosperous economy, government laws governing ATVs, and impending electric vehicle projects. The immense popularity of motorsports in the region has also contributed to the growing adoption of ATVs for recreational purposes by consumers.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Honda Motor Co. Ltd. and Deere & Company are the forerunners in the All-terrain Vehicle Market. Companies such as Zhejiang CFMoto Power Co., Ltd., Polaris, Inc., Textron, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Textron, Inc., Bombardier Recreational Products, Inc., Zhejiang CFMoto Power Co., Ltd., Polaris, Inc., Deere & Company, Kwang Yang Motor Company Ltd., Suzuki Motor Corporation, Honda Motor Co. Ltd., Yamaha Motor Co., Ltd., and Kawasaki Heavy Industries, Ltd.
Recent Strategies deployed in All-terrain Vehicle Market
Dec-2021: Polaris introduced Ranger XP Kinetic, an electric version of its Ranger off-road vehicle. The new product aimed to offer zero-emissions along with enhanced performance and durability to farmers, landowners, hunters, and ranchers.
Sep-2020: Polaris collaborated with Zero Motorcycles, an American manufacturer of electric motorcycles. Following this collaboration, the companies would jointly develop electric vehicles including snowmobiles and All-Terrain Vehicles.
Aug-2020: Polaris launched Sportsman 450 H.O and Sportsman 570, all new ATVs of the company. Through this launch, the company aimed to strengthen its position across the All-terrain vehicle industry.
Jul-2020: BRP expanded its geographical footprint in Mexico with the introduction of a new manufacturing facility. Through this geographical expansion, the company aimed to increase its manufacturing capacity in order to fulfill the customer's demand for off-road vehicles.
Dec-2019: CFMOTO introduced Evolution A, a new all-electric All-Terrain vehicle. The new product with its advanced design, comprises the ability of CFMOTO to bring an evolution across the All-Terrain vehicle industry.
Jan-2019: Textron signed a memorandum of understanding with TRACKER, a GPS tracking company. Following this partnership, Textron aimed to integrate TRACKER's GPS expertise in its all-terrain vehicles portfolio in order to release TRACKER off-road, a new range of highly efficient all-terrain vehicles and side-by-sides.
Oct-2018: Polaris unveiled Sportsman XP 1000 and Sportsman 850 SP, the latest lineups of the company. This launch aimed to offer customers, the largest battery of the industry along with best-in-class ground clearance and larger suspension travel.
Jun-2018: Textron Specialized Vehicles rolled out Textron Off Road Prowler Pro side-by-side. Through this launch, offer quiet gas power along with the reliability and performance to facilitate the toughest jobs and extreme hunts.
May-2018: Suzuki released KingQuad 500 and KingQuad 750, new ATVs by the company. The new products comprise a broad range of enhancements to offer the most reliable, robust, and capable KingQuad machines of the company.
Mar-2017: Textron acquired Arctic Cat, a leader in the recreational vehicle industry. Through this acquisition, the company aimed to expand its off-road recreational vehicles product range to offer increased capabilities for innovation to its customers. Moreover, this acquisition would also accelerate the combined worldwide dealer network of Textron.
Scope of the Study
Market Segments covered in the Report:
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