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The all-terrain vehicle (ATV) market size is estimated to grow by USD 2.11 billion at a CAGR of 8.8% between 2023 and 2028. The market growth is driven by several factors, including the growing use of all-terrain vehicles (ATVs) in recreational, sports, and military applications, the increasing demand for ATVs for recreational and adventurous sports activities, and the overall rising demand for ATVs. ATVs are becoming increasingly popular in recreational and sports settings due to their versatility and ability to navigate diverse terrains, enhancing the outdoor experience. In the military sector, ATVs are valued for their ruggedness and mobility in challenging environments. The surge in adventurous sports activities has further boosted the demand for ATVs, catering to thrill-seekers and outdoor enthusiasts. These factors collectively contribute to the expanding ATV market, driven by diverse applications and rising consumer interest.
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The market is driven by technological advancements and increased production capacity in manufacturing facilities. Diverse ATV models cater to recreational vehicles, utility vehicles, and electric ATVs. Key applications include farming, forestry, military & defense, and construction. Automotive manufacturers like Polaris with its Sportsman Series enhance outdoor sports activities and off-road events at adventure and trail parks. The use of ATVs in agricultural applications is growing, supported by rising disposable income and purchasing capacity. Innovations like the AutoTrac-assisted steering system improve functionality, while concerns about greenhouse emissions and energy consumption drive the shift towards greener models. Our researchers analyzed the data with 2023 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising demand for ATVs is driving the market growth. ATVs, or quad bikes/quadricycles, are designed with low seat and off-highway tires to ride over various terrains inaccessible to other vehicles. With the rise in recreational off-roading activities, ATV production has increased, and they are also used for transportation in large farmlands. While North America and Europe dominate the global ATV market, emerging markets like India and China have seen a surge in demand due to increasing awareness and entrance of new ATV OEMs.
Furthermore, the growing popularity of off-road adventure events and activities among enthusiasts in APAC is also contributing to ATV sales. The US, already a market leader in ATV demand, is witnessing increased investments in recreational activities, which will boost the growth of the global ATV market in the forecast period.
An increasing number of ATV experience zones is a primary trend shaping market growth. Prominent ATV manufacturers are conducting activities and events to promote ATVs and creating dedicated experience zones to increase product demand. They are expanding their dealership networks in North America and Europe and focusing on developing Asian economies.
Furthermore, Polaris Inc. is developing Polaris Experience Zones (PEZs) in countries like the US, Germany, and India, which provide riders with a real-life off-roading experience and promote the visibility of ATVs among consumers. Land allocation and environmental sanction by governments for the development of experience zones play a major role in the growth of the market. Recreational activities and sporting events in the UAE are expected to increase ATV sales and fuel the growth of the global ATV market.
Legal limitations associated with off-road vehicles is a significant challenge restricting market growth. The demand for off-road vehicles, particularly ATVs, is increasing due to the popularity of recreational activities. However, legal restrictions pose a challenge to their adoption in many cities worldwide. For example, in New York City, the use of ATVs, dirt bikes, and other high-performance off-road vehicles is banned in public spaces.
Despite this, the US has permitted the use of ATVs on public roads in some states such as Wisconsin and Ohio. Similarly, in the UK, ATVs can only be driven on the road if they are registered, taxed, and approved by the Ministry of Transport, and the driver has a Category B1 or a full car license and insurance. These regulations may hinder the growth of the global ATV market during the forecast period.
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The market share growth by the 400cc-800cc segment will be significant during the forecast period. There is a wide range of terrain vehicles that comes under the 400cc-800cc segment, which is heavier compared to below 400cc terrain bikes. Such terrain bikes are more powerful and are designed for more rough terrains. All-terrain bikes with engine capacity of 400cc-800cc have been widely used in the army, the marines, and the special operations command. ATVs provide individuals with all-terrain mobility to deploy special operations forces in harsh environments and across a variety of special operations missions.
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The 400cc-800cc segment shows a gradual increase in the market share of USD 1.44 billion in 2018. Sport ATVs are a lot of fun for drivers looking for adrenaline rushes, but ATVs made and utilized for practical purposes have begun to gain popularity. On the other hand, utility ATVs are designed specifically to be simpler to tow and tote. They are often highly practical and built to tackle a variety of terrains. ATVs used by military personnel have more adaptable designs and are constructed in a way that allows them to give users the responsiveness and mobility they require. Thus, ATVs with 400cc-800cc have all these features, which increase their demand from the military and other special operation forces and can also be used in adventure sports. Such factors will boost the growth of the 400cc-800cc segment of the global market during the forecast period.
Recreational activities are essential for stress management and overall wellbeing. ATVs, designed for off-road use, are ideal for leisure activities. Electric quad bikes can be used to relax and feel happy, improving motivation and confidence. Tourist destinations such as Dubai offer quad safaris for adventurous travelers. The COVID-19 pandemic has highlighted the importance of recreational activities, with a 20% increase in outdoor activities in the US in 2021. The growing tourism industry and popularity of quad bikes will drive the growth of the recreational segment in the global ATV market.
North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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North American countries such as Canada and the US are the major revenue-generating countries for ATVs. The high popularity of and demand for off-road vehicles such as ATVs in the US and Canada have contributed to regional market share. In addition, the presence of numerous off-road adventure activities in North America has also played an important role in driving the popularity and sales of ATVs. Another factor that supports the growth of the market in these countries is the introduction of ATVs with automatic transmission systems by various vendors.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. Some of the major companies in the market include:
Bombardier Recreational Products Inc.:The company offers all-terrain vehicles such as snowmobiles
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The use of motorized off-road vehicles extends beyond adventure sports and off-road racing events to encompass a wide array of applications including farm-related activities, landscaping, and material handling in assembly and manufacturing units. With a growing emphasis on efficiency and environmental consciousness, electric vehicles are gaining popularity due to their quieter operation and resilience in harsh environments. As consumer confidence in off-road environments increases, Original Equipment Manufacturers (OEMs) are continuously improving engine efficiency and safety standards to reduce fatalities and injuries. Advanced four-wheel drive ATVs equipped with powerful towing capabilities are addressing demands for rugged terrain and high payload capacities. Technological innovations, such as the Polaris Sportsman Series and light utility vehicles, incorporate robust electric motors and suspension systems to enhance maneuverability and ensure rider safety in remote and challenging terrains. Automotive racing seats further enhance safety and comfort, crucial for prolonged off-road use and demanding applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2023 |
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Historic period |
2017-2021 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.8% |
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Market growth 2024-2028 |
USD 2.11 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.49 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 55% |
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Key countries |
US, Germany, Australia, France, and Canada |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BMS Motorsports Inc., Bombardier Recreational Products Inc., HISUN Motors Corp., Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Kayo USA, Kubota Corp., Mahindra and Mahindra Ltd., Massimo Motor Sports LLC, Nebula Automotive Pvt. Ltd., Polaris Inc., SHERP, Suzuki Motor Corp., Taiwan Golden Bee Co. Ltd., Tao Motor Inc., Textron Inc., TOMCAR, Yamaha Motor Co. Ltd., and ZHEJIANG CFMOTO POWER Co. Ltd. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Engine Capacity
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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