ATV and UTV Market

Market Overview

The global ATV and UTV market size was valued at USD 9.81 billion in 2021. It is expected to reach USD 17.73 billion by 2030, growing at a CAGR of 6.80% during the forecast period (2022–2030).

A vehicle is considered an all-terrain vehicle (ATV) if it has handlebars and is fitted with four low-pressure tires. ATVs are used in the military, forestry, agriculture, sports, and other industries and are renowned for their maneuverability and off-road capabilities. These require training and are handled very differently. These are typically used off-road, but only a few places allow them to be driven on public roads. These have grown in popularity over the past few years because they make it possible to reach remote locations and offer a practical means of transporting supplies and equipment. A vehicle called a utility terrain vehicle (UTV) is made to carry out tasks more effectively than a general-purpose vehicle. Other names for this vehicle include multi-purpose off-highway utility vehicle (MOHUV) and recreational off-highway (ROV).

Market Dynamics

Market Drivers

Increasing Popularity of Adventure Sports and Leisure Pursuits

ATV and UTV trails and related activities are now very popular with tourists for recreational purposes. To draw and keep tourists, many tourism councils are introducing ATV and UTV-related activities by constructing tracks for these vehicles. For instance, the adventure event promoter ATV Circuit opened an ATV track in Noida (India) in May 2018. With a 1.5 km track, ATV Circuit offers an entirely off-road experience for customized 4x4 all-terrain vehicles with engines between 80 and 350 ccs. The main objective was to track an increase in the number of people interested in extreme sports. Additionally, several nations host annual championships, rapidly gaining popularity because anyone operating an ATV can compete in the race. As a result, these adventure sports' popularity is rising, attracting tourists, and stimulating the market for ATVs and UTVs.

Rising Demand in Military Operations

ATVs and UTVs are more in demand for military tasks like troop transportation and traversing treacherous terrain. ATVs and UTVs are also anticipated to experience significant growth in the military sector due to their superior mobility for tactical missions. Furthermore, factors enhancing the market growth include high maneuverability, flexibility, and excellent navigational aids that give drivers of moving vehicles close directions. For instance, the Polaris MRZR Alpha, a new Lightweight Tactical All-Terrain Vehicle (LTATV), was given a USD 109 million seven-year contract by the U.S. Special Operations Command (USSOCOM) in May 2020. As a result, the market for ATVs and UTVs are expanding as military troops' demand for these vehicles rises.

Market Restraints

Extremely Harmful to Wildlife Habitats

Driving an ATV or UTV in a wildlife area can have several detrimental effects on the landscape, including noise pollution, vegetation damage, increased runoff, soil erosion, and deteriorated water quality. ATV and UTV use is prohibited in many nations because it damages the terrain, endangering wildlife habitats and other areas. ATVs also damage plants and young saplings when they stray off trails, reducing forest floor cover. Nearby trees are harmed due to exposed and damaged roots caused by soil erosion. A few rules have been added to the area to manage unmanaged ATV and UTV use and support wildlife recovery management strategies. As a result, ATVs and UTVs are prohibited in wildlife areas because they harm the health of the grasslands and wildlife habitats, which is expected to slow the expansion of the global market.

Market Opportunities

Creation of Safe ATVs and UTVs

ATVs and UTVs are used for camping and nature exploration but are also extremely risky. ATV and UTV accidents are more common because there are more of these vehicles available for purchase. For instance, the U.S., a nation with the most significant number of ATVs and UTVs, saw the highest number of fatalities resulting from ATV and UTV accidents. The driver's failure to behave safely and reasonably is the primary cause of almost all vehicle accidents.

Market players are also introducing ATVs and UTVs with cutting-edge features like GPS in more significant numbers that are safe and secure. For instance, Yamaha Motor Corp., USA, a manufacturer of automobiles, recently unveiled its dependable off-road recreational, utility, and sport ATVs, which feature industry-leading comfort, capability, and safety. They also come with GPS tablets. Therefore, developing ATVs and UTVs with improved safety features to prevent accidents and fatalities presents a business opportunity for the major players in the ATV and UTV markets.

Regional Analysis

The global ATV and UTV market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global ATV and UTV market and is expected to grow at a CAGR of 5.7% during the forecast period. The main factors anticipated to increase demand for ATVs and UTVs in North America are the high demand for ATVs, high disposable income of individuals, the scope for new and advanced technologies, developed economy, and government regulations regarding ATV designs. The introduction of new models of these vehicles by significant players and racing championships held by top ATV and UTV clubs contribute to the expansion of the ATV and UTV market share in the area. Additionally, it is anticipated that North America's market will grow due to government regulations supporting these vehicles' use on public roads.

Asia-Pacific is expected to grow at a CAGR of 7.8% during the forecast period. The increased demand for power sports recreational activities in many countries, including China, Australia, and India, is the main factor driving the ATV and UTV market growth in the Asia-Pacific region. Launching new ATV and UTV models and introducing new ATV and UTV models in line with defense applications contribute to the market's expansion in the Asia-Pacific region. Additionally, the addition of ATV and UTV riding circuits is anticipated to boost this area's global market. In addition, rising leisure spending, particularly in developing nations like China and India, is expected to support market expansion in the Asia-Pacific region.

The military is driving the market for ATVs and UTVs in countries like Germany, Russia, and France. The introduction of new ATV and UTV models and improvements and innovations made to these vehicles contribute to the expansion of the ATV and UTV market share in Europe. Additionally, it is anticipated that the growing popularity of adventure sports and leisure activities will support European market expansion.

LAMEA's ATV and UTV market includes Latin America, the Middle East, and Africa. The market in the region is anticipated to grow due to the significant demand for ATVs for industrial, agricultural, and tourism-related uses in nations like Brazil, the UAE, and others. The market is anticipated to grow due to rising tourism, enormous ATV demand for recreational purposes, and rising consumer awareness of off-roading sports and events. ATV and UTV racing championships like the Mega ATV Championship are held in LAMEA, which helps in the regional market growth. The ATV and UTV industry in LAMEA is projected to expand rapidly due to favorable government laws allowing their use on highways.

Segmental Analysis

The global ATV and UTV market is segmented by vehicle type, displacement, fuel type, application, and end-user.

Based on Vehicle Type, the global market is bifurcated into ATV and UTV.

The UTV segment is the highest contributor to the market and is expected to grow at a CAGR of 6.5% during the forecast period. Off-road vehicles, called utility vehicles, are made to carry out tasks more effectively than passenger cars. They are mainly employed to transport supplies and machinery between areas inaccessible to trucks. These vehicles are used for various tasks, including farming, material handling, hunting, and mountaineering. The main factor fueling the market's expansion is the growing use of UTVs for utility purposes like forestry, agriculture, and goods transportation.

All-terrain vehicles (ATVs), which can be driven with handlebars and have low tire pressure, are also known as quads, quad bikes, and others. ATVs are designed to carry a maximum of two people, but some companies have introduced models that can accommodate four people. One of the main factors propelling the growth of ATVs is the rising popularity of off-road sports activities and ATV competitions, like the GNCC Amateur Competition.

Based on Displacement, the global market is bifurcated into less than 400cc, 400-800cc, and more than 800cc.

The 400-800cc segment owns the highest market share and is expected to grow at a CAGR of 6.1% during the forecast period. Due to excellent fuel efficiency, the vehicles within this segment are primarily used for hunting, mountaineering, and other outdoor activities. Demand for 400-800 cc ATVs and UTVs is rising as they become more widely used in utility, search, and rescue operations. Market participants are also launching related products to meet rising consumer demand, helping the 400-888cc segment grow even faster.

Under this segment, ATVs and UTVs with engines larger than 800cc are considered. These vehicles are primarily used in industries like agriculture and material handling. Due to an increase in off-trailing events, it is anticipated that the more than 800 cc segment of the global market will experience significant growth. Off-road competitions use ATVs and UTVs with larger displacement engines to produce more torque and gain a competitive edge.

Based on Fuel Type, the global market is bifurcated into gasoline-powered, diesel-powered, electric-powered, and solar powdered.

The gasoline-powered segment is the highest contributor to the market and is expected to grow at a CAGR of 6.4% during the forecast period. This segment includes ATVs and UTVs that run on gasoline. A large percentage of ATVs and UTVs are powered by gasoline, combined with oil in a precise ratio to protect engine components and provide rapid acceleration. The growth of gasoline-powered ATVs and UTVs are boosted by introducing a new line of vehicles with improved engines, improved performance, and added safety features.

This segment examines ATVs and UTVs that have diesel-powered engines. Heavy-duty ATVs and UTVs typically have diesel engines for powerful towing and material handling applications. ATV and UTV manufacturing companies are introducing new lines of these vehicles for improved load carrying and towing capacity. The growth of the diesel-powered segment is also fueled by the introduction of a new line of ATV and UTV vehicles by top manufacturers with improved towing and load-carrying capacity.

Based on Application, the global market is bifurcated into utility and sports.

The sports segment owns the highest market share and is expected to grow at a CAGR of 6.2% during the forecast period. Races, timed events, and competitive riding all use these vehicles. They typically have a single rear axle and a single suspension designed to be powerful and light to rule the racetrack. The main driver of the growth of the sports segment is a significant increase in demand for ATVs in sports applications due to an increase in international sport racing competitions. Due to the increasing availability of groomed trails for riding side-by-side vehicles, consumers are also purchasing these vehicles to race on specific side-by-side vehicle trails. Youth athletes also participate in international ATV and UTV sporting events like the Grand National Cross Country (GNCC) and UTV World Championship, propelling the market's expansion.

The utility segment includes ATVs and UTVs used for various purposes, including transportation, carrying objects, farming, etc. They are primarily employed to transport supplies and machinery between areas inaccessible to trucks. Utility ATVs and UTVs are frequently operated in agricultural and livestock management applications. The utility segment of the global market is expanding due to the increased use of these vehicles for forestry, agriculture, and goods transportation. Additionally, the expanding use of these vehicles for fishing, hunting, and forest travel fuels the market expansion.

Based on End-User Verticals, the global market is bifurcated into agriculture, military, and mountaineering.

The mountaineering segment is the highest contributor to the market and is expected to grow at a CAGR of 5.5% during the forecast period. "Mountaineering" describes a group of athletic pursuits involving steep hills. This includes ATV hill climbing, ATV rock climbing, and other activities. The primary factor propelling the global market growth in the mountaineering segment is the rise in mountain adventure activities like ATV rock climbing, ATV hill climbing, and rock racing due to the increase of thrill seekers.

ATVs and UTVs are used extensively in the military because they can travel almost anywhere where conventional vehicles cannot. This category includes vehicles used for tactical and combat missions, security and patrol, search and rescue, operations and maintenance, ultra-light tactical off-road vehicles, off-road action, and others. The military segment's growth is primarily fueled by the sharp increase in demand for ATVs and UTVs in military applications due to their superior mobility for tactical missions.

Recent Developments

• September 2022- Kubota Corporation introduced electric tractors first among Japanese manufacturers. Limited LXe-261 compact electric tractors from Kubota are available in Europe, a region that actively pursues carbon neutrality.
• August 2022- Special Mission for Textron Aviation Beechcraft King Air 260 aircraft became a part of the U.S. Forest Service's aviation fleet supporting wildland fire management. According to a press release from Textron Aviation, two Beechcraft King Air 260 aircraft have been delivered to the U.S. Forest Service. Wildfire mapping missions will be carried out by the aircraft.