PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1218857
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1218857
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According to Stratistics MRC, the Global Utility Terrain Vehicles Market is accounted for $8.0 billion in 2022 and is expected to reach $13.4 billion by 2028 growing at a CAGR of 9% during the forecast period. Compared to a general-purpose vehicle, a utility terrain vehicle (UTV) is made to carry out tasks more effectively. It is also referred to as a side-by-side, off-road vehicle with four wheels that can accommodate two to six persons. This vehicle is most probably used for agricultural and construction tasks, including easily moving equipment and smaller tools while transporting plants, shrubs, fertilisers, and compost. It can also cooperate with other modified vehicles.
According to the American National Standards Institute, an ATV is a vehicle that runs on low-pressure tires, with operator straddled seats and steering wheel handlebars. As the name suggests, it is designed to climb a broader range of terrain than most of the other vehicles available commercially.
Wide usage in defence and military operations
The ability of this vehicle to operate in difficult terrain, which is a crucial factor in defence and military operations, is anticipated to drive the global utility terrain vehicle market. Additionally, the market is growing because of its large cargo carrying capacity and quick mobility on hard surfaces in anti-terrorist operations and border security battles in coastal areas. Moreover, the increased use of UTVs by farmers and hunters as well as the expansion of infrastructure in terms of construction are anticipated to provide growth opportunities for the manufacturers.
High labour and infrastructure cost
Due to the high costs of labour and infrastructure, it is anticipated that the global market for utility terrain vehicles will experience slow growth. Utility terrain vehicle production requires a substantial facility and a highly skilled workforce. Furthermore, because utility vehicles are used in challenging environments, their construction should adhere to certain standards. The cost of manufacturing utility terrain vehicles is extremely high due to the use of various premium plastics and metal alloys.
Positive outlook toward electric utility terrain vehicles
The positive outlook for electric utility vehicles is predicted to reveal the market for utility terrain vehicles with significant opportunities for growth in terms of sales revenue. The development and production of top-notch electric utility terrain vehicles (UTVs) is being undertaken by numerous significant players in the global UTV market. The main advantages of electric utility vehicles are their low fuel costs compared to alternatives like gasoline or diesel, as well as their environmentally friendly construction. The market will expand as a result of consumers preferring such a cost- and ecofriendly option.
Huge investments are needed to build the necessary infrastructure to design, develop, and produce these vehicles, which is a significant factor that is anticipated to restrain market growth. Furthermore, the expansion of the global market for utility terrain vehicles is also anticipated to be hindered by strict governmental regulations, rising import-related tariffs and taxes, and their effects on overall vehicle costs.
The COVID-19 pandemic has spread globally and disrupted many industries. The operation of many industries is continuously decreasing as the world continues to fight this crisis. The growth of the market in the near future is impacted by a sharp decline in demand from end-use industries. Various projects in emerging economies are also confronting obstacles. Numerous pre-automotive projects are being scrutinised more closely as concerns about their viability in the current economic climate grow.
The 400 To 800 CC segment is expected to be the largest during the forecast period
Due to its most extreme features and improved security, the 400-800 cc UTV product segment is anticipated to hold the largest market share of the global market during the forecast period. The section's growth will be driven by the expansion of rough-terrain desert titles in the United States. Additionally, vehicles provide a roll confinement structure that enhances vehicle security and reduces the risk of injuries and fatalities. Industry key players are focused on creating and promoting advanced vehicles that will increase demand for 400-800 cc UTVs.
The sports segment is expected to have the highest CAGR during the forecast period
During the forecast period, the sports segment is anticipated to have the lucrative growth in the global market. A sports utility vehicle is a vehicle comparable to a station waggon or bequest vehicle that is usually equipped with four-wheel drive for capability on or in rough terrain. Some SUVs combine the towing capacity of a pickup truck with the passenger capacity of a minivan or large vehicle. Moreover, the sports utility terrain vehicle is used in a variety of competitive sporting events, including the Baja 1000, King of the Hammers, FIA Cross-Country Rally World Cup, and Australasian Safari. Besides this, some of these utility vehicles participated in the Trophee Andros ice racing series.
Region with largest share:
Due to factors including the popularity of ATVs, upcoming electric vehicle projects, high discretionary economic levels, the potential for new and trend-setting innovations, the developed economy, and unofficial laws regarding ATV plans, North America is predicted to hold the largest market revenue share during the projection period. According to industry reports, the US accounts for the largest share of the global market for off-road vehicles due to their use in the military, agriculture, sports, entertainment, hunting, ranger services, mining, and development activities.
Region with highest CAGR:
Because of the increasing demand for ATVs and UTVs over time due to expanding tourism activities, Europe is anticipated to witness the highest growth rate in the global utility terrain vehicle market. The demand for these vehicles has increased because of the increasing popularity of adventure and sports in nations like France, Spain, and Germany. Additionally, the rise of the European market is also fueled by rising consumer disposable income and rising living standards. However, innovations in technology, an increase in applications in the agriculture and defence sectors, and supportive government initiatives are additional factors boosting market growth.
Key players in the market
Some of the key players in Utility Terrain Vehicles market include John Deere (U.S.), Bombardier Aerospace (U.S.), Honda (Japan), Polaris Industries (U.S.), Arctic Cat (U.S.), Yamaha Motor (Japan), Suzuki (Japan), Kubota (Japan), Kawasaki (Japan), BMS Motorsports, Daymak Inc., Tomcar (U.S.), Caterpillar, HISUN Motors, Hisun Motors and Massimo Motor.
In October 2018, Kawasaki Motor Corp. becomes exclusive Curtis steel cab distrubitor in U.S. This cab provides more comfort and also protection to the occupants.
Propulsion Types Covered:
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Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances