All-Terrain Vehicle Market

Market Outlook for All-Terrain Vehicle

The global shipment of all-terrain vehicles are expected to surpass US$ 4 Bn by 2031, according to Fact.MR. As per the report, the market for all-terrain vehicles is anticipated to surge 1.4x until 2031.

With burgeoning demand for off-road vehicles, all-terrain vehicles are sluggishly gaining traction across several fields such as sports, agriculture, military, tourism and entertainment which is estimated to foster demand in forthcoming years.

Key Points Covered in All-Terrain Vehicles Industry Survey:

• Market Estimates and Forecasts 2016-2031
• Key drivers and restraints shaping market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on All-terrain Vehicles and how to navigate
• Recommendation on key winning strategies.

Consumption Analysis of All-Terrain Vehicles 2016-2020 Vs Future Outlook 2021-2031

According to Fact.MR- a market research and competitive intelligence provider- the global market for all-terrain vehicles thrived at a CAGR of over 2% from 2016 to 2020, to reach US$ 3 Bn.

Sales outlook of all-terrain vehicles as per Fact.MR’s report is fairly positive, expected to touch US$ 4.2 Bn following a CAGR of 3.4% over the projected period 2021-2031.

North America is expected to embrace its dominance in market with over 50% holdings in all-terrain vehicles industry. Asia stands next in the queue with plentiful growth opportunities, especially in China and India.

What Factors are stimulating the All-Terrain Vehicle Market?

Sales of all-terrain vehicles are expanding significantly, owing to emerging popularity of extreme sports and necessity for robust compact equipment. Furthermore, expanding off-road activities in various industries like military and agriculture has driven market demand on a positive growth chart.

Additionally, the construction industry is progressively adopting off-road compact vehicles to boost up its efficiency. Furthermore, rapid industrialization and an upsurge in mining activities are major dynamics expected to drive market expansion.

Moreover, manufacturers' interest in frequent advancements in the development of various eco-friendly vehicles is likely to boost adoption of ATVs in the near future.

Which are Some Lucrative Growth Opportunities for All-Terrain Vehicles?

Growing preferences for hybrid and electric off-road vehicles are highly anticipated to drive the demand for off-road vehicles during the forecast period 2021-2031.

Vendors offering off-road vehicles are investing huge amounts in offering advanced off-road vehicles. Consequently, opening doors for the new opportunities in the various segments of all-terrain market. The growing demand for SUVs and pick-up trucks is estimated to offer immense growth opportunities in forthcoming years. 

What Are Some Key Trends in the Market?

Rising electric vehicles popularity along with inclination towards off-road sports has impelled market demand for all terrain vehicles. Additionally, development of intelligent torque vectoring for AWD is a major trend driving the growth of the market.

OEMs are developing specialized suspension systems with high ground clearance to help off-road vehicles travel greater distances, swift departure, and break-over angles. Furthermore, adoption of all wheel drive by government agencies is estimated to propel the market growth.

Progress of hybrid engines with upgraded efficiency and negligible emissions accompanied by the introduction of lightweight models will further encourage industry growth till 2031.

Country-wise Analysis:

How is the U.S. Generating Demand for All-Terrain Vehicles?

The U.S market for all-terrain vehicles was valued at around US$ 2.3 Bn in 2020, with over 300 Mn units of new ATVs sold. Furthermore, U.S dominates the regional market with 50% share holdings of ATV.

However, electric all-terrain vehicles are gaining popularity in North America and Europe as an alternative for ATVs operating on gasoline and diesel. 

The market is expanding because of government initiatives and subsidies. For instance, the U.S Army has shown interest in acquiring ATVs with features such as rapid transportation capabilities and the ability to carry nine fully armed soldiers, agility, and a minimum speed of 55 mph.

Why is the All-Terrain Vehicle Industry Flourishing in China?

China is forecast to reach a projected market size of US$ 2.1 Bn by 2031. China will endure among the fastest cultivating in this cluster of regional markets. Expanding construction and automotive sectors are catalysing adoption of ATVs to a large extent.

The presence of prominent manufacturers like China Peteresa Industrial Limited, Zhejiang Renli Vehicle Co. Ltd., and Shanghai Thunder Electric Technology Co. Ltd. has generated new grounds for market expansion.

Category-wise insights:

Why are Gasoline Based All-Terrain Vehicles Gaining Traction?

Gasoline is projected to be the largest segment of the all-terrain vehicles market by fuel type. Gasoline is expected to dominate the market in the coming years with increased demand for gasoline ATVs in applications such as sports and military.

The segment accounted for a market share of exceeding 60% in 2020. Demand for gasoline ATVs is increasing owing to high demand in military and sports applications. Heavy-duty all-terrain vehicles are primarily equipped with diesel engines, as they are used for powerful towing and material handling applications.

Why are More Than Four Wheeled ATVs Surging in Popularity?

More than four wheeled ATVs are predicted to be most sought after by 2031. OEMs are planning to be more customer-oriented in terms of its manufacturing processes.

The growing number of ATV buyers are looking for more than 4-wheel ATVs, especially in military and agricultural applications. Henceforth, more than four wheeled ATVs is projected to gain grounds worldwide. The market will accelerate at a CAGR exceeding 3% in the forthcoming decade.

Competitive Landscape

Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.   

• In Sept 2018, Powersports manufacturer Polaris Industries Inc. and WSI Industries Inc. jointly announced a merger agreement in cash for a total enterprise value of approximately US$23.9 Mn. The merger is expected to close in the Q4 of 2018.
• In June 2021, Honda becomes the first of Japan’s automakers to state publicly it will phase out sales of gasoline-powered cars completely, setting 2040 as the goal. The company plans to unveil 3 new electric two-wheelers by 2024, as well as 10 new EV cars in China within 5 years.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Companies Profiled	Polaris Industries Inc. Textron Inc. Honda Motor Company Ltd. Kawasaki Suzuki Motor Corporation LINHAI KTM AG Nebula Automotive Pvt. Ltd. Bombardier Recreational Products Inc. (BRP)
Pricing	Available upon Request

Key Segments Covered

• Drive type

  • 2WD in All-Terrain Vehicles
  • 4WD in All-Terrain Vehicles
  • AWD in All-Terrain Vehicles

• Fuel Type

  • Gasoline-powered All-Terrain Vehicles
    • Below 400 cc
    • 400 - 800 cc
    • More than 800 cc
  • Electric-powered All-Terrain Vehicles 

• Seating Capacity

  • One Seat All-Terrain Vehicles
  • Two Seat All-Terrain Vehicles

• Application

  • Sports All-Terrain Vehicles
  • Entertainment All-Terrain Vehicles
  • Agriculture All-Terrain Vehicles
  • Military & Defence All-Terrain Vehicles
  • Other (Hunting & Forestry, etc.) All-Terrain Vehicles

• Age Group

  • All-Terrain Vehicles for Youth
  • All-Terrain Vehicles for Adults

• Number of Wheels

  • Four Wheeled All-Terrain Vehicles
  • > Four Wheeled All-Terrain Vehicles