PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1303612
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1303612
The all-terrain vehicle market is projected to grow from USD 3.2 billion in 2023 to USD 3.7 billion by 2028, at a CAGR of 3.0% from 2023 to 2028. The market has promising growth potential due to rising farm management applications and military mobility operations. Additionally, ease in regulatory norms for registration across different regions fuels the demand for ATVs.
"Sports is the largest application for all-terrain vehicles."
The sports segment is anticipated to hold the largest share of all-terrain vehicles. Sports ATVs have powerful engines and long-travel suspensions to enhance the handling experience. They are particularly favored by riders participating in ATV championships due to their distinctive high-power engines and torque capabilities. Sport ATVs typically have engine capacities ranging from 100 to 1000cc and can be customized with various accessories to create a unique style and enhance performance. Their exceptional shifting skills and handling features make them highly suitable for sporting activities. The demand for ATVs in recreational/sports activities in Europe and Asia Oceania has snowballed in recent years. The countries of these geographies have experienced increased recreational and adventure events to support outdoor activities. Multiple sports events are being organized in different regions' countries to attract residents and tourists to participate.
Further, sports ATVs demand is higher in GCC countries due to tourism growth and increased interest in desert sports. Leading industry players offer extensive customization options to customers, allowing them to make their ATVs faster, more agile, and well-suited for racing tracks. Furthermore, renowned ATV manufacturers (OEMs) like Honda, Yamaha, BRP, and Polaris are incorporating electronic fuel injection systems in their sport ATV models. Notable sport ATV models available in the market include the Yamaha Raptor 700R SE, YXZIOOOR SE, Polaris Scrambler, Polaris Phoenix, and YFZ450R SE. The growth of the sport ATV market is driven by the rise in recreational activities within the tourism sector and the continuous advancements in the engine systems of sport ATVs.
">800cc to be the fastest-growing market for All-terrain vehicles."
Over the forecast period, the>800cc engine is the fastest-growing segment for the all-terrain vehicle market. They deliver high power, tractability, and strength, making these ATVs helpful in carrying heavy loads, towing equipment, and navigating rough terrains. The demand for ATVs with an engine capacity >800 cc is expected to grow substantially in North America as it is a mature market where people are shifting to higher capacity engines for recreational/work activities. The higher engine capacity ATVs are helpful in racing events and challenging off-road conditions. Industries such as mining, forestry, and search and rescue operations depend on these strong ATVs. Polaris Sportsman XP 1000, Can-Am Renegade 1000, Kawasaki Brute Force 750 4x4i EPS, and Yamaha Grizzly 850 are some of the popular ATV models with engine capacity of more than 800 cc available.
"The electric all-terrain vehicles are estimated to register the highest CAGR."
Electric propulsion all-terrain vehicles are poised to grow rapidly under the review period. New vehicular emission regulations coupled with upcoming developments in alternate propulsion technologies, lowering battery and related parts pricing, and rapidly increasing charging infrastructure are boosting the adoption of electric ATVs. Battery-powered ATVs are efficient as they have lower installation and operational costs than conventional gasoline ATVs, with negligible emissions and low operating noise compared to other ATVs. The development in battery technologies, such as battery packs, fast charging, and long-range batteries, would drive the demand for electric ATVs. For instance, newer versions of electric ATVs, such as the EZ Raider HD4 have a very powerful battery that enables riders to travel as far as a gas-powered ATV. Increasing environmental concerns, developments in battery driving ranges, and launches of various electric ATV models would spur the adoption of electric ATVs in the coming years.
"Asia Oceania to speculated to be the fastest growing market for All-terrain vehicles market during the forecast period."
The Asia Oceania region will grow fastest for the all-terrain vehicle market, in which Australia and China are the largest markets, whereas India is the fastest-growing market. The key reasons for market growth in Asia Oceania are the increasing sports and entertainment activities and rising demand for ATVs for military and defense applications. In addition, the increased disposable incomes of individuals, the growth in the country's economy, low production costs, availability of cheap labor, and government initiatives for FDIs have led to increased spending on leisure activities. This, in turn, has resulted in increased sales of all-terrain vehicles in the region. The region has a higher growth potential than mature markets such as North America and Europe, which encourages the growth of the all-terrain vehicle market. Major regional players such as Honda Motor Co. Ltd (Japan), Kawasaki Heavy Industries Ltd (Japan), Suzuki Motor Corporation (Japan), and some foreign and local players support the regional demand with their cost-effective and performance-driven products.
Breakdown of Primaries
In-depth interviews were conducted with CXOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
The All-terrain vehicles market comprises major manufacturers such as Polaris Inc. (US), Honda Motor Co., Ltd (Japan), BRP (Canada), Yamaha Motor Corporation (Japan), and Textron Inc. (US).
The study segments the all-terrain vehicle market by application (Sports, Entertainment, Agriculture, Military & Defense, and Others (Hunting, forestry)]; type (sports ATV and utility ATV); drive type (2WD, 4WD, and AWD); engine capacity (<400 CC, 400 to 800 CC, and >800 CC); fuel type (Gasoline, and Electric); seating capacity (One, and ≥ two); number of wheels (four, and more than four), region (Asia Oceania, Europe, North America, RoW), and side-by-side by region.
The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall all-terrain vehicle market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.