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The ATV and UTV market is estimated to increase by USD 4.26 billion at a CAGR of 6.97% between 2022 and 2027. Market expansion hinges on various factors, such as the burgeoning interest in adventurous sports, escalating demands for ATVs and UTVs, and their growing integration into agricultural and farm activities. Challenges facing this market encompass environmental apprehensions stemming from ATV and UTV usage, legal constraints tied to off-road vehicle operation, and the absence of universal acknowledgment as street-legal vehicles. These hurdles pose significant barriers to market penetration and necessitate innovative strategies for sustainability and compliance. Despite the hurdles, the potential for market growth remains substantial, given the increasing popularity of recreational activities and the indispensable role of ATVs and UTVs in various sectors. Addressing environmental concerns and legal limitations is paramount to harnessing the full potential of these vehicles in diverse applications.
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The market is critical across various regions like LAMEA, where diverse Vehicle types equipped with specialized features such as Electric gearbox and Liquid Cooled Motors are deployed. These vehicles navigate challenging Terrain conditions to enhance security efforts, especially in border areas prone to threats from Military activities, Tourism, and organized events like the ATV Circuit and Adventure events organized by entities such as Autosports India and the Mega ATV Championship. Despite their utility, these vehicles must navigate responsibly to minimize Vegetation damage, preserve Water quality, and protect Wildlife habitat. Exhibitions and events like Overlander OffRoad Adventure and Autocross showcase innovations in border security technology, fostering collaboration among defense agencies and highlighting the importance of advanced equipment in maintaining national security.
The increasing trend toward adventurous sporting is notably driving the market growth. The global market is witnessing significant growth due to the increasing popularity of recreational and adventure sports, particularly in regions like North America and Europe. The surge in off-road activities, such as mountain and dirt racing, is driving the demand for off-road vehicles, including ATVs and UTVs. These regions have seen a rise in associations organizing annual events, which boost sales.
For instance, the Ontario Snowmobile Events in February 2022 attracted numerous adventure sports enthusiasts, leading to increased demand for these vehicles. The off-road use of these vehicles on soil terrain can contribute to soil erosion and runoff, necessitating the development of eco-friendly tires to mitigate environmental concerns. Therefore, such factors are expected to boost the growth of the global market during the forecast period.
Growing automation in ATVs and UTVs is a major trend in the market. The ATV and UTV market is experiencing significant advancements in powertrains and drivetrains, with a focus on reducing soil erosion and runoff during off-road use.
Autonomous and connected car technologies are also being integrated into these vehicles, as seen with Honda Motor's prototype of a semi-autonomous ATV unveiled at CES 2019. This prototype, built on a rugged ATV chassis, utilizes GPS and sensors to minimize environmental impact and improve overall performance. Such factors are estimated to drive the market during the forecast period.
The environmental concerns due to the use of ATVs and UTVs are major challenges impeding the market. The market faces challenges due to the environmental impact of these vehicles on soil. Off-roading activities can lead to increased soil runoff, erosion, and compaction. Soil erosion is a significant concern as it can alter the soil's structure and reduce its ability to support vegetation.
Compaction, a long-term effect, increases soil bulk density, strength, and decreases permeability, making it less suitable for plant growth. These issues can negatively impact market growth as regulations and environmental concerns continue to evolve. Therefore, such environmental factors will hinder the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
HISUN Motors Corp. -The company offers all-terrain vehicles delivering a complete line of UTVs and ATVs, under the brand names of Forge, Tactic, Youth, and many more. The key offerings of the company include ATVs.
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; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the sports segment will be significant during the forecast period. The ATV and UTV market experiences significant growth due to the increasing popularity of motorsports events, particularly in the context of racing in challenging terrains such as snow and sand. These vehicles, including sports ATVs and UTVs, are engineered for superior speed and agility. They boast features like long suspension systems, aerodynamic fairings, and high ground clearance, enabling them to traverse difficult terrains and even jump with ease. However, the off-road use of these vehicles can lead to soil erosion and runoff, which may require mitigation efforts to prevent environmental damage.
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The sports segment was valued at USD 5.27 billion in 2017 and continued to grow until 2021. The increasing demand for watching and participating in motorsports events, aided by the increasing number of global contests, is fueling the demand for sports ATVs and UTVs. Moreover, the increase in off-road recreational activities is driving the ATV and UTV market for sports. The increase in the number of sports enthusiasts driving ATVs and the development of ATV experience zones will positively impact this market segment.
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North America is estimated to contribute 59% 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.
The Side-by-side, Four-wheel drive vehicles market in North America, specifically consisting of ATVs and UTVs, dominates the global scene in 2022. The US and Canada are key contributors to this market's revenue due to the high demand for Passenger-carrying vehicles with increased capacity in these environments for Transportation purposes. Adventure sports and activities are popular in North America, with rules and regulations in place for their use. Some areas may Ban driving in certain Wildlife habitats to minimize damage to Vegetation and reduce Noise pollution.
Maintenance costs and Fuel consumption are considerations, with Electric Vehicles gaining traction for their reduced environmental impact. Safety measures and Bills or ordinances are essential considerations, with Newfoundland and Labrador, for instance, supporting Trapping and hunting activities on designated Circuits. Displacement and Power output are important factors, with Fuel efficiency and Safety features influencing consumer decisions. Regulations on driving in specific areas may also impact the market, such as noise pollution and wildlife damage concerns. These factors are also driving the market growth.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
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In the realm of Vehicle type diversity, border security incorporates specialized equipment like those with Handlebars and Low-pressure tires designed for versatile use in Agriculture, Forestry, and military applications. These Utility terrain vehicles serve multiple roles from Passenger carrying to meeting Government rules in sensitive Wildlife areas while minimizing Terrain damage and Maintenance costs. They play pivotal roles in various sectors, including organized events by Adventure event organizers, supporting initiatives like Wildlife recovery and mitigating Accident rates through technologies such as GPS tablets for enhanced navigation and operational efficiency. As integral components of border security strategies, these vehicles uphold safety standards and operational effectiveness across diverse environmental and operational challenges. The adventure event organizer provided comprehensive training on operating the utility terrain vehicle to minimize maintenance cost and protect the forest floor cover.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.97% |
Market growth 2023-2027 |
USD 4.26 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.75 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 59% |
Key countries |
US, Canada, Germany, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BMS Motorsports Inc., Bombardier Recreational Products Inc., Deere and Co., HISUN Motors Corp., Honda Motor Co. Ltd, Kawasaki Heavy Industries Ltd., Kayo USA, Kubota Corp., KWANG YANG MOTOR Co. Ltd., Mahindra and Mahindra Ltd., Massimo Motor Sports LLC, Nebula Automotive Pvt. Ltd., Polaris Inc., Suzuki Motor Corp., Tao Motor Inc., Textron Inc., TOMCAR, Yamaha Motor Co. Ltd., Zhejiang CfMoto Power Co. Ltd., and Taiwan Golden Bee Co. Ltd. |
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 the Market forecast period |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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