Global All-Terrain Vehicle Market to Surpass $5.0 Billion by 2027, Fueled by Increasing Demand for off-Road Vehicles

All-terrain Vehicle Market by Type & Application (Sport, Entertainment, Agri, Military & Defense), Drive (2WD, 4WD, AWD), Engine (<400, 400-800, >800cc), Fuel, Wheel Number, Seating Capacity, Side-By-Side Vehicle and Region - Global Forecast to 2027


Northbrook, IL 60062 -- (SBWIRE) -- 03/27/2023 -- The all-terrain vehicle market is estimated to grow from US$ 4.3 billion in 2022 to US$ 5.0 billion by 2027 at a CAGR of 2.7% over the forecast period.

The demand for ATVs in agriculture and military & defense industries is expected to be the fastest. In contrast, the sports ATVs are expected to lead the market over the forecast period. Considering the increase in demand for ATVs in agriculture and military industries, the 4WD ATVs would lead the global ATV market. The global ATV market is consolidated, where the top 5 players contribute more than 75% to the market share.

Market Dynamics

DRIVER:Increased demand for recreational activities, agriculture, and military operations.

The Number of recreational events is constantly increasing every year. Sports authorities organize the ATV championships with off-terrain ATVs in challenging national-level conditions. The US holds multiple racing events annually where participants compete for titles and rewards. World Off-Road Championship Series (WORCS) is one of the most significant racing events organized in the country. Additionally, John Deere, agricultural and farm equipment manufacturer, recently launched UTV models for farming applications. This development is owing to the high demand for UTVs by customers working in the agriculture sector for various applications. For instance, in September 2020, John Deere updated its legendary line of Gator™ Utility Vehicles (UVs). Similarly, owing to the increase in military budgets worldwide and successful applications of ATVs in military operations due to their modularity and functionality, demand for such special military ATVs will rise in the future.

OPPORTUNITIES: Positive outlook toward electric all-terrain vehicles will create new opportunities.

The adoption of technologies related to electric all-terrain vehicles has been increasing among all-terrain vehicle manufacturers. Leading markets for electric ATVs such as China, the US, and Germany are investing heavily in R&D infrastructure for off-road vehicles. Due to emission regulations being upgraded by various countries, most of the investments are likely to go towards developing electric powered vehicles, and the same applies to the ATV market. In 2021, Polaris launched its EV ATV, Ranger XP Kinetic, a model it developed in collaboration with the Zero motorcycles company. It has a 14.9kWH battery and can travel 45 miles on a single full charge. Polaris also partnered with a company, Qmerit, which is a residential EV charging infrastructure provider.

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Similarly, Ecocharger is an all-electric all-terrain vehicle manufacturer in the UK. Either lead acid or lithium-ion batteries primarily drive their models. They have a strong presence in the European continent and have plans to expand dealerships across southern and central Europe. This indicates that customers demand more electric ATVs from a climate-conscious mind or compliance with the country's regulations. Nonetheless, electric ATVs will have a growing market demand in the future.

4WD all-terrain vehicles are estimated to be the largest market during the forecast period
In 4WD all-terrain vehicle, the engine's power is equally/differentially divided among the wheels on the front and rear axles. As 4WD ATVs provide better control capability and performance in the field, they are mainly preferred for utility activities such as farming which requires efficient pulling power. The key applications of ATVs in agriculture are inspecting crops and livestock, applying fertilizers and chemicals, marking timber, moving dirt, transporting materials, etc. 4WD are also generally used in recreational activities and offer multiple technical advantages over 2WD. For instance, 4WD offers better holdback when driving downhill, less likely to flip while uphill, better traction in slippery riding conditions, etc. Thus, considering the advantages provided by the 4WD, it leads the market and is expected to remain the dominant market in the forecast period.

Asia Pacific all-terrain vehicle market expected to register the highest CAGR during the forecast period
The Asia Pacific market would witness the fastest growth of ATVs over the forecast period, especially in India and China. In terms of volume, the major all-terrain vehicle countries in Asia Oceania are China and Australia, which later became the largest seller of ATVs in the region. Utility ATVs are estimated to hold the largest share of the all-terrain vehicle market in the region. Utility ATVs are multipurpose and have applications in different sectors ranging from military, agriculture, construction, forestry, etc. In addition, the increasing demand for recreational and sports activities in countries such as India and Australia would further drive the market. The region, thus, offers lucrative opportunities and tremendous potential for all-terrain vehicle manufacturers.

Key Market Players

The all-terrain vehicle market is primarily dominated by globally established players such Polaris (USA), Honda (Japan), Can-Am (Canada), Yamaha (Japan), and Textron (USA). These companies are consistently developing new products, adopted expansion strategies, and undertook collaborations, partnerships, and mergers & acquisitions to gain traction in this high growth ATV market across different regions.

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