PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1687462
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1687462
The Off-road Vehicle Market size is estimated at USD 17.41 billion in 2025, and is expected to reach USD 21.30 billion by 2030, at a CAGR of 4.12% during the forecast period (2025-2030).
The COVID-19 pandemic hurt the market as lockdowns and travel restrictions resulted in a slowdown in demand. However, post-pandemic, as restrictions eased, recreational and sports activities started seeing positive trends. Due to this, the demand for off-road vehicles is expected to increase during the forecast period.
The growing popularity of off-road sports and the need for robust, compact equipment are elevating the demand for off-road vehicles. Moreover, as off-road vehicles have a wide range of users across the agriculture, mining, construction, and other sectors, they are expected to witness optimistic growth. Additionally, minimal maintenance costs, reduced fuel consumption, and low insurance costs will aid the demand for these vehicles in the construction industry.
ATVs and UTVs are not allowed to operate on highways and other main roads, so government authorities have allocated more funds to build new off-road trails, which may be useful for recreational enthusiasts and boost adventure sports activities worldwide. This is expected to drive the market. In addition, companies are also focusing on introducing new products with improved features to attract more customers and gain a competitive position in the market.
New technological developments, such as electric drive trains, will create new growth opportunities for the off-road vehicles market. The growing popularity of electric off-road vehicles owing to rising emission concerns will spur the off-road vehicles industry.
North America is expected to remain the largest market for off-road vehicles, followed by Europe, owing to growing consumer demand in the region. Asia-Pacific is expected to witness the fastest growth in the off-road vehicle market, owing to the high adoption rate and the booming automotive sector, leading to increased production of off-road vehicles, especially in China and India.
The ATV market is growing rapidly as vehicle manufacturers are developing ATVs for many end-use applications. The increasing interest of people in sports and recreational activities has emerged as a significant driving factor for the segment. Moreover, manufacturers' interest in frequent advancements in the development of various eco-friendly vehicle versions is likely to boost the market.
In August 2022, Polaris launched a new flagship RZR (R) Pro R Sport ATV model in India. The new ATV has a powerful 1997 cc 4-stroke DOHC inline four-cylinder engine responsible for delivering 225 bhp of maximum power. In 2022, Arctic Cat introduced the new Alterra 600 ATV in four different trim levels. In April 2021, Arctic Cat announced a new ATV as part of its model year 2022 line-up for dealerships in July. The new Alterra 600 EPS features an all-new engine, drivetrain, and chassis offering, with increased power, better handling, and easier servicing. The launch of the ATV coincides with Arctic Cat's 60th anniversary of bringing new and innovative products to power sports. In September 2020, Yamaha unveiled its latest ATV models, the Grizzly 2021 and Kodiak 700 and 450 models. The company unveiled its 2021 Youth ATV lineup, including the Grizzly 90 in Armor Gray (USD 3,099 MSRP), Raptor 90 in Team Yamaha Blue and White (USD 3,099 MSRP), and YFZ50 in Team Yamaha Blue and White (USD 2,199 MSRP). In September 2020, Polaris announced entering a joint venture with Zero Motorcycles to develop electric ATVs and snowmobiles.
ATVs' market share is projected to witness steady growth. This is owing to the change in the rules and regulations that govern and define the standards in the way ATVs are used. Regulatory authorities, such as the California-based non-profit organization and the All-terrain Vehicle Safety Institute (ASI), determine proper ATV usage regulations and promote approved products and accessories, such as seatbelts, footrests, helmets, and kill switches.
The North American region is anticipated to hold a significant share of the off-road vehicle market during the forecast period. Despite the pandemic, in 2020, the North American market had a very successful year in sales, with significant growth seen in all-terrain vehicles as the preference for sports and recreational activities rose among youth.