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.
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.
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.
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.
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.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 2.9 Billion |
| Market size forecast in 2027 | USD 3.8 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 4.2% from 2021 to 2027 |
| Number of Pages | 166 |
| Number of Tables | 274 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Application, Engine Type, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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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.
Free Valuable Insights: Global All-terrain Vehicle Market size to reach USD 3.8 Billion by 2027
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.
By Application
By Engine Type
By Geography
The all-terrain vehicle market size is projected to reach USD 3.8 billion by 2027.
Increasing Investment in R&D of All-Terrain Vehicles are driving the market in coming years, however, lack of safety and Government regulations limited the growth of the market.
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.
The Military & Defense market is expected to witness highest CAGR of 5.1% during (2021 - 2027).
The 400cc-800cc market dominated the Global All-terrain Vehicle Market by Engine Type in 2020, thereby, achieving a market value of $1.8 billion by 2027.
North America is the fastest growing region in the Global All-terrain Vehicle Market by Region in 2020, and would continue to be a dominant market till 2027.
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