Off-Road Vehicles Market Analysis

Off-Road Vehicles Market Analysis

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.

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.

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.
 

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.