Historically, ATVs and UTVs were mainly linked with sports and recreation. However, throughout time, the use of these vehicles has expanded to include the agricultural sector, as well as patrolling, hunting, gardening, and other activities. Moreover, manufacturers are striving to expand the use of electric ATVs and UTVs.
As most ATVs and UTVs are not permitted to be operated on highways and other major roads, government authorities around the globe have boosted budgetary allocations for the construction of new off-road paths that may be useful for leisure enthusiasts and encourage adventure sports in the region. This is anticipated to drive the studied market.
Government Initiatives and Increasing Outdoor Adventure Parks to Drive the Global Off-Road Vehicle Market
New testing requirements and stringent regulatory oversight may result in more safety measures in new off-road vehicles, raising the market's growth potential. Governments are implementing efforts that could increase demand for off-road vehicles. Government officials have raised funding allotments to construct new off-road paths, which may benefit outdoor enthusiasts and encourage adventure sports in the region. Countries are constructing new parks for off-road enthusiasts; these parks will undoubtedly aid young ATV and UTV users in expanding their business footprint.
The Grand Prairie City Council authorized the Lone Star Off-Road Park particular use permit in March 2021. This place is an outdoor amusement park for off-road vehicles, such as Jeeps, ATVs, and off-highway vehicles. As the American Motorcyclist Association (AMA) conducts numerous dedicated ATV series, such as the ATV Motocross National Championship Series and the ATV Extreme Dirt Track National Championship Series, the number of off-roading races in North America is increasing. This racing series will boost the percentage of Americans who own an ATV in the following years.
Developments in the Electric UTV and ATV and Shift in the Interest of the Buyers to Provide Opportunities for the Global Off-Road Vehicle Market
In previous years, numerous firms presented their electric lineup. Still, the lead-acid version's limited range, the lithium-ion version's expensive cost, and the low demand forced the company to discontinue the line. In recent years, however, after the electric revolution in passenger cars, numerous off-road vehicle manufacturers have released their electric off-road vehicle lineups. For instance, the American hybrid truck design company Nikola Motors introduced the Nikola NZT electric UTV. The NZT has up to 590 horsepower. In under 3.5 seconds, the car accelerates from 0 to 60 miles per hour. The NZT has a ground clearance of 14.5 inches and 722 lb-ft of torque. This is one of the most technologically advanced electric UTVs on the American market.
Moreover, the growth is not limited to mature countries; electric vehicles are also being developed in emerging areas such as India. In August 2020, for instance, in India, Powerland Agro Tractor Vehicles, which debuted the electric ATV in 2019, announced that the company's all-electric lineup of ATVs and side-by-sides were ready for shipment to the United States and select European countries. Powerland's e-UTV has a tested range of 150km in Eco mode with a 14kWh battery pack. The business claims a charge time of eight hours from empty with the included 15A wall charger and a charge time of up to 80 percent in one hour using a 14kW charger. Thus, the improvements above in electric UTVs and ATVs, as well as a shift in buyer preferences, are expected to boost demand for electric off-road vehicles over the projection period.
By region, the global off-road vehicle market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
The North American segment accounted for the largest market share and is estimated to grow at a CAGR of 4.1% during the forecast period. In terms of sales, the North American market (United States, Canada, and Mexico) had a phenomenal year in 2021. ATV sales in the region increased by almost 33%. The region's market for all-terrain vehicles (ATVs) is driven by the rise in leisure spending and the number of off-roading activities. Youth's growing preference for adventure and off-road events and the availability of a wide variety of items at varying prices are factors that further propel the industry's expansion. Major market participants in the region are releasing new items. For example, Polaris launched its new 2021 portfolio in August 2020. The company modified its technology and introduced the ATV models Sportsman 450 H.O. and 570 for riders of varying degrees of experience and skill. More 2021 models include the RZR XP Turbo and Turbo S, the GENERAL XP 1000 Pursuit Edition, and the RANGER XP 1000 Trail Boss for the first time. Thus, government initiatives and the increasing interest of young people in leisure activities are projected to propel the market growth in the region throughout the forecast period.
Europe is the second largest region. It is estimated to reach an expected value of USD 6 billion by 2030 at a CAGR of 4.3% during the forecast period. In Europe, the market for off-road ATVs is adverse, and in 2020 sales plummeted by 31% to approximately half of what they were five years ago. However, several significant competitors are releasing cutting-edge technology items in the region to acquire market share. Authorities are trying very hard to limit the number of accidents involving off-highway vehicles. The new EU type-approval frameworks for "two- or three-wheel vehicles and quadricycles" (L-category) and "agricultural and forestry vehicles" (T-category) went into effect in January 2016. This rule will replace the current homologation system based on directives. During the three-year legislative process concerning these two new regulations, ATVEA actively engaged in the talks. The homologation of both utility and recreational All-Terrain Vehicles (ATVs) and Side-by-Sides (SBS) will therefore be governed by Regulations (EU) 167/2013 (T) and (EU) 168/2013 (T) (L). As a result of the trends mentioned above and regulations, it is anticipated that the market will expand at a healthy CAGR during the forecast period.
Asia-Pacific is the third largest region. In response to the rising demand for off-road vehicles, several established and new firms in the automotive industry have begun manufacturing these vehicles to increase their market share and revenue streams. For example, China's Great Wall Motor said in March 2021 that it would introduce a new standalone brand for its off-road vehicles. In 2019, the Indian business Powerland debuted the Powerland 900 D, an SKD (semi-knocked down) kit from Linhai in China, which was then manufactured locally in Goa. This vehicle is eligible for private vehicle registration despite the agricultural vehicle registration. In addition, the state police of Uttar Pradesh utilized Powerland 4x4 ATVs for Kumbh Mela patrols. The military troops in the region are equipped with all-terrain vehicles to facilitate travel in steep and mountainous terrain. In addition to the abovementioned factors, the increasing average age of vehicles on the road is anticipated to impede the market's expansion as consumers choose aftermarket driveshafts for older vehicles.
Key players in the global off-road vehicle market are Polaris Inc., BRP Inc., Honda Motor Company, Yamaha Motor Corporation, Arctic Cat Inc., Kawasaki Motors Corp., Suzuki Motor Corporation, American LandMaster, Kwang Yang Motor Co. Ltd, Kubota Corporation.