(MENAFN- America News Hour) The off-road vehicle market was valued at USD 14 billion in 2022, and it is anticipated to reach USD 18 billion by 2031, registering a CAGR of 4.12% during the forecast period
The outbreak of the COVID-19 pandemic acted as a restraint to the off-road vehicle market in 2020 due to the continuous travel and trade restrictions imposed by governments globally. However, after the pandemic, the market is expected to grow steadily as economic activities resumed worldwide.
The global off-road market is experiencing high demand, owing to the growing popularity of extreme sports and the need for robust compact equipment. Off-road vehicles have a wide range of users across the agriculture, mining, construction, and other sectors. The companies providing off-road vehicles are focusing on introducing new products with improved features to attract more customers and gain a competitive position in the market.
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Moreover, the construction industry is increasingly adopting off-road compact vehicles to boost its efficiency. The rapidly growing industrialization and an increase in mining activities are the major factors expected to drive the growth of the off-road vehicle market. However, the high cost of maintenance of off-road vehicles is the primary factor that is anticipated to hinder the growth of the off-road vehicles market.
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.
Key Market Trends
All-Terrain Vehicle Segment 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 lineup 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).
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.
North America to Hold Prominent Share in the Market
North America held the largest market share in the off-road vehicle market during the forecast period (2021 – 2026). Despite the pandemic, in 2020, the North American market (the United States, Canada, and Mexico) had a very successful year in sales, with significant growth seen in all-terrain vehicles.
The rising recreational expenditure and the growing preference of the youth toward adventure and off-road events are likely to boost demand in the market. A wide range of products across varied prices is anticipated to enhance the growth during the forecast period.
In August 2020, Polaris introduced a new 2021 lineup. The company redesigned its technologies and introduced Sportsman 450 H.O. and 570 model's ATV for riders of all experience and skill levels. More models' of the 2021 lineup include the RANGER series' latest RZR XP Turbo and Turbo S, GENERAL XP 1000 Pursuit Edition, and the first RANGER XP 1000 Trail Boss.
In March 2021, Polaris Inc. announced that it plans to launch its first full-size off-road electric RANGER UTV with Zero Motorcycles powertrain.
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 expected to drive the demand in the market during the forecast period.
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Competitive Landscape
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 are emphasizing on introducing new products and technologies to attract customers worldwide. For instance,
In December 2020, Volcon announced pricing for pair of electric side-by-sides. Stag and Beast both have a range of 150 miles.
In November 2020, American Landmaster revealed its all-new lineup 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, weather-sealed electrical system, and more.
Some of the major players, like Arctic Cat, Polaris Industries, BombThe off-road vehicle market is moderately consolidated due to the presence of numerous players in the market. The key market players in the industry are emphasizing introducing new products and technologies to attract customers worldwide.
In December 2020, Volcon announced pricing for pair of electric side-by-sides. Stag and Beast both have a range of 150 miles.
In November 2020, American Landmaster revealed its all-new lineup 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.
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 will be creating new opportunities in the industry in the coming years.
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