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Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles, Snowmobiles), By Propulsion Type (Gasoline, Diesel, Electric), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI2321
  • Published Date: Dec 2022
  • Report Format: PDF

Industry Statistics

Off-Road Vehicles Market size surpassed USD 20 billion in 2022 and is slated to grow at over 8% CAGR from 2023 to 2032, driven by the increasing development of electric off-road vehicles in Europe.
 

Off-Road Vehicles Market

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With a mountainous and rocky terrain in the region, Europe offers a wide opportunity for regional growth. Countries like the UK, France and Germany have been witnessing a growing uptake of electric off-road vehicles, especially from the millennial population. In early November 2022, the EU banned the sale of new petrol and diesel cars from 2035, to curb CO2 emissions in the continent. Electric alternatives are gaining a strong foothold in Europe as they do not run on fossil fuel, driving industry demand. 
 

Safety concerns around off-roading activity may hinder market expansion

Off-roading, an adventure activity, is a dangerous activity that can result in severe accidents and/or fatalities, with many ORVs providing little protection to riders. This factor can severely restrict the off-road vehicles market growth. Moreover, often these vehicles are marketed for children and do not have many laws regulating their use, leading to a higher probability of accidents and hampering the overall progress.
 

Rise in the number of ATV clubs to foster product demand

The ATV segment is projected to observe 8% growth between 2023 to 2032, owing to the rising number of all-terrain vehicles clubs along with the proliferation of outdoor parks, fueling demand. In addition, the rising sports competition and involvement of the younger generation in such outdoor activities will result in continuous segment growth. Demand for the product is also slated to rise given the rise in facilities that provide proper driving training and teach passenger safety.
 

Growing demand for no-emission vehicles

The off-road vehicles market from the electric propulsion type is poised to witness 17% growth rate through 2032. With electric vehicles becoming the new norm as governments around the world work on curbing carbon emissions and pollution, the industry is also endorsing a rise in demand for electric ORVs, given the upsurge in off-roading and related activities. Electric motors also offer instant power and torque to the vehicle, fostering demand especially among U.S. consumers.
 

Increasing popularity of adventure activities to boost demand in recreation activities

Europe Off-road Vehicles Market Size, By Application

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The use of off-road vehicles for recreation purposes is estimated to reach USD 16 billion by 2032, on the account of increased spending on leisure and adventure activities. With the Covid-19 pandemic having forced many to stay home alone, participation in recreational activities witnessed a rise as lockdowns and restrictions were eased. This has also opened investment opportunities in the sector, stimulating industry dynamics.
 

Presence of several off-road trails in North America

Global Off-road Vehicle Market Share, By Region

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The North America off-road vehicles market revenue was worth 12 billion in 2022. This is on the account of higher participation in recreational activities as compared to other regions, resulting in elevated demand for off-road vehicles. The region is also experiencing growth at a rapid rate with the U.S. having a well-established off-roading industry, along with the launching of technologically advanced vehicles there.
 

Expansion of production facilities to shape the competitive landscape

Major players in the highly-competitive off-road vehicles industry are Honda Motors, Polaris Industries, Yamaha Motor Corporation, BRP, and Kawasaki Motors Corporation. To improve their market share, many firms are working towards advancing product design and improving configuration and after-sales services.
 

Impact of COVID-19 on the industry outlook

The COVID-19 pandemic saw a negative impact on several industries, especially those which involved outdoor participation, due to lockdowns in order to curb the spread of the highly-contagious virus. The sector also saw a slump in growth and demand as strict lockdowns were imposed worlwide, but with ease in restrictions, pent-up demand of people who stayed indoors saw a surge in outdoor activities. According to American automaker Polaris, the company witnessed a boom in the sale of ORVs, reporting a nearly 40% rise in earnings in the first three months of 2021, adding that there is a growing market of new people wanting to try off-roading activities.
 

This market research report on Off-road vehicle includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2018 to 2032 for the following segments:

Market, By Vehicle

  • ATV
  • UTV/SSV
  • Off-road motorcycle

Market, By Application:

  • Utility
  • Sports
  • Recreation
  • Military

Market, By Propulsion Type

  • Gasoline
  • Diesel
  • Electric

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of off-road vehicles registered nearly USD 20 billion revenue in 2022 and is anticipated to grow at over 8% CAGR between 2023 to 2032, owing to the expansion of the electric off-road vehicles industry in Europe.

The electric off-road vehicles industry is projected to observe 17% growth through 2032, driven by the growing popularity of electric alternatives in vehicles in order to reduce greenhouse gas emissions and pollution globally.

The North America off-road vehicles industry is expected to cross a valuation of USD 12 billion by 2032, on the account of higher participation in recreational activities, including off-roading, in the region compared to others.

Some of the major players in the competitive scenario are BRP, Kawasaki Motors Corporation, Honda Motors, Yamaha Motor Corporation, and Polaris Industries.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 17
  • Tables & Figures: 342
  • Countries covered: 16
  • Pages: 300

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