(MENAFN Editorial) Global ATV Market Size to witness 145% revenue growth during the forecast period with Asia Pacific becoming corridor to new market opportunity for industry players The global all-terrain vehicle (ATV) market size is estimated to be valued at USD 6 billion in 2017 and will register a CAGR of 3.5% between 2017 and 2027 to create revenue opportunity for industry players.
Bekryl's market research, finds that industry will gain 145% revenue growth during the forecast period. The key trends are very similar to those of motorcycle. However, the ATV is gaining popularity across worldwide. As a result, production is expected to increase during the forecast period. Majority of the production units are based out of Japan and U.S. Over the 10 year period, the industry is set to witness upward trend with market gradually shifting towards ASEAN and South Eastern Asia Belt.
Increase in demand for ATV will create 1.5x higher market opportunity for industry players. Technological disruption has played a key role in overall demand for ATV worldwide. Competition has heightened not only in developed regions but also developing regions. While players are focusing on maintaining their market share in North America and Europe, they are aggressively making foray in Asia Pacific with their distribution partners to assure profitability over longer time frame.
New product launch and mergers & acquisitions are key ATV market trends shaping the industry. These trends are expected to push market towards further consolidation and thereby will lower down the hyper competition. Recently, in 2015, Polaris acquired Hammerhead off-road vehicles business to strengthen its market presence. This is in series of acquisition in line with merger of Kolpin Outdoor that took place in 2014. Increasing pressure to deliver stable profit margins could further led to possible mergers and acquisitions during the forecast period.
Globally, North America and Western Europe dominated the ATV market size in 2016. However, favorable macro and social factors is creating lucrative opportunity in Asia Pacific region. Europe ATV market share accounted for 45% of global value in 2016. While Western Europe will lose significant market share by 241 basis points, Central and Eastern Europe is expected to gain 1% market share by 2027. Eastern Europe witnessed downward growth trend post 2014 primarily due to economic sanction on Russia.
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The global ATV market scenario is highly consolidated in nature with leading players accounting for over 85% of the total market. Some key ATV market players are Honda Motor Company, John Deere, Polaris Industries, Shuopu, Suzuki Corporation, CFmoto, Can-AM, HiSun Motors, Taiwan Golden Bee, Linhai, Yamaha Corporation, and KYMCO. The competition has heightened in last few years as a result the companies are emphasizing on product line expansion. For instance, Honda is expected to launch its much awaited side-by-side utility vehicle in 2017.In 2015, Arctic Cat introduced XR ATV that falls in higher cc category (>500cc). Polaris Defense announced to launch high performance MRZR turbo diesel for special operations. The vehicle has its market in U.S. and twenty allied countries. Apart from product level strategy, companies are building strategy on pricing level to sustain the competitive environment. In 2015, Suzuki launched affordable ATV in India with price starting nearly US$ 9 thousand. The move is to capture a greater chunk of mid-class population, -in turn generating high ROI on volume terms.
The ATV market companies need to be agile and adopt inorganic strategy to sustain and generate higher profit margins for longer terms.
Company Name: Bekryl Market Analysts
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