Market Research Report
North America ATV And UTV Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
|North America ATV And UTV Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 82 Pages
Delivery time: 2-3 business days
The North American ATV and UTV market was valued at USD 5.69 billion in 2020, and it is expected to reach USD 7.54 billion in 2026, registering a CAGR of about 4.82% during the forecast period (2021 - 2026).
During the outbreak of COVID-19, the market was hit adversely because of the disruptions caused in the supply chain, as several major economies of the world were forced into lockdown, and economic activities were halted during this period. However, with the gradual opening up of economies, the demand is expected to return to the market.
As most of the ATVs and UTVs are not permitted to be operatable on highways and other main roads, government authorities across the region increased the budgetary allocations to build new off-road trails that may be helpful for recreational enthusiasts and boost adventure sports activities in the region. This is expected to drive the market studied.
Earlier, ATVs and UTVs were majorly associated with sports and recreational activities. However, over time, the application of these vehicles diversified, and they are now being used in the agricultural sector and for patrolling, hunting, gardening, and other activities.
The increasing preference for UTV and ATV by military forces worldwide is expected to increase the ATV and UTV market size. The United States and Canada are expected to lead the market during the forecast period because of government initiatives and subsidies. For instance, the United States 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 of 55 mph.
There is an increase in the demand for ATV and UTV for military activities, such as transportation of troops, driving on difficult terrain. There is a rise in the demand for new ATVs in the US Army, as the ATV can transport troops on the battlefield and carry nine fully-armed soldiers.
This requirement of ATV and UTV from military organizations drives the growth of the market. LATVia received Sportsman Big Boss and MRZR and 2 ATVs and UTVs from the US-based company, Polaris Government & Defense. These Polaris vehicles will be delivered in 2020 for defense purposes as part of the US government program. Thus, the rise in the demand for ATVs and UTVs from military troops drives the growth of the ATV and UTV market.
ATVs and UTVs are very useful in activities, such as hunting, nature exploration, hiking, and other outdoor exploration, but these vehicles are often very risky and dangerous. The number of ATVs and UTVs available on the market is growing. This raises the number of ATV and UTV-related incidents increasing. The production of ATVs and UTVs, with additional safety measures to avoid injuries and death, will give the key players operating in the ATV and UTV market the opportunity to dominate the space.
In the United States, the ATV segment has always been very relevant, and the country is the home to the top manufacturers, like Polaris, BRC, and Arctic Cat. These three, along with Honda and Yamaha, represent 90% of the global and national sales.
The increasing recreational expenditure and the increasing number of off-roading events drive the country's ATV market. The growing preference of the youth toward adventure and off-road events and the availability of a wide range of products across varied prices are the factors that drive the growth of the industry.
The military of the nation uses more ATVs for diversifying their applications, which include transporting armed forces and ammunition across long distances. The need for vehicles to run in rough terrain provides an impetus to the growth of the all-terrain vehicles market.
However, a few factors hinder the growth of ATVs in the country. For instance, ATVs have heavy designs and robust riding features. The governments urge drivers and passengers to follow the necessary safety measures while riding ATVs.
According to industry insights, the US accounts for the largest share of the all-terrain vehicle market, owing to the high demand in applications, such as military, agriculture, sports, entertainment, hunting, forestry, mining, and construction activities. As the demand for ATVs continues to increase, the United States is expected to remain the largest all-terrain vehicle market in the region.
The North American ATV and UTV market is highly consolidated and dominated by few players, including Polaris Industries Inc., American Honda Motor Co. Inc., BRP Inc., Arctic Cat, and Yamaha Motor Co. Ltd. The companies are expanding their presence and making acquisitions.
The manufactures are working toward making ATVs and UTVs eco-friendlier.