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U.S. Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles, Snowmobiles), By Application (Utility, Sports, Recreation, Military), Industry Analysis Report, State Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2018 – 2024

  • Report ID: GMI3074
  • Published Date: Jan 2019
  • Report Format: PDF

Industry Trends

U.S. Off-Road Vehicles Market size was valued at around USD 9 billion in 2017 and is estimated to exhibit over 5% CAGR from 2018 to 2024.

U.S. Off-Road Vehicles Market

Increasing participation of the U.S. population in outdoor activities will drive the industry share over the forecast period. According to the Outdoor Foundation Organization (OFO), in 2016, the outdoor participating population grew by around 2 million as compared to 2015. Moreover, increasing involvement in recreational activities such as hunting will propel the product demand. For instance, as per the Outdoor Industry Organization (OIO), in 2016, the average outings per person reached 82 as compared to 77 outings in 2016.

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The vast presence of recreational facilities such as snowmobile and ATV trails will escalate the U.S. off-road vehicles market size. According to the ISMA, in 2018, there were around 136,850 miles of snowmobile trails in the U.S. Further, in 2018, there were over 1.2 million registered snowmobiles with an average snowmobiler riding 1,250 miles per year. Growing preference for snowmobiling will enhance the market growth.

The presence of federal lands continuously attracts outdoor participants. The U.S. Recreation Government offers around 150,000 miles of trails and 439 wilderness areas that support the OHV adaption. Further, increasing discretionary spending in outdoor activities will positively influence the U.S. off-road vehicles market size over the study timeframe. For instance, as per the OIO, in 2017, the American population spent approximately USD 20 billion on trails sport gear.

Continuous adoption of advanced technologies, such as Independent Rear Suspension, Automatic DCT, Shock Technology, and Electronic Fuel Injection (EFI) System, to enhance consumer experience will support product adoption. Further, industry players are innovating product landscape to reduce sound generation in noise-restricted areas. Ongoing innovations will induce significant potential in the U.S. off-road vehicles marketplace.

Rising fatalities arising from ATV riding will restrict the U.S. off-road vehicles market size. According to the U.S. Consumer Product Safety Commission (CPSC), in December 2016, over 335 ATV-related fatalities were registered. However, organizations such as ATV Safety Organizations are providing training and education under 16 drivers for wearing safety gears. Increasing safety initiatives from organizations will provide a positive outlook in the longer run.

U.S. Off-Road Vehicles Market, By Vehicle

In 2017, SSV accounted for over 50% share in the U.S. off-road vehicles market owing to the superior safety features. The presence of bucket seats and roll-cage structure lowers the fatality and reduce injuries. SSV can accommodate multiple passengers and offer larger space for carrying loads. Further, industry players including Arctic Cat, Polaris Industries, and Textron are installing components such as skid plates to increase the ground clearance and load-bearing capacity. The adoption of components to improve vehicle performance will ensure its dominance in the market share over the forecast period.

ATV will witness over 3% CAGR till 2024 with increasing youth inclination toward sports activities. National sports events, such as GNCC Amateur Competition, are continuously attracting youth participants. Further, organizations including SAE International are conducting design and race events that are growing product awareness. However, rising accidents and injuries from these vehicles will restrict the segment growth.

U.S. Off-Road Vehicles Market, By Application

Utility leads the U.S. off-road vehicles market size with high adoption of ORVs for activities including agricultural spreading, goods transfer, and livestock management. Industry players are upgrading the utility product portfolio with superior performance. For instance, in July 2018, Polaris announced to upgrade Polaris RANGER XP for higher seating and load-carrying capacity. Increasing product performance will enhance the segment penetration over the study timeframe.

The sports segment will witness around 5% CAGR till 2024 with rising sports activities such as autocross, and rallycross. Rising off-road championships are continuously attracting participants thereby expanding the product demand. For instance, in 2018, American Powersport conducted ATV championship series indulging the youth population. Military application is at the nascent stage and will foresee a significant growth with its adoption in adverse terrain conditions.

U.S. Off-Road Vehicles Market, By State

California leads the U.S. off-road vehicles market share owing to the presence of multiple recreational facilities for ATV & SSV. Organizations including California State Parks in partnership with local, state, and federal agencies are organizing programs such as California Off-Highway Recreation Program, encouraging the youth participation. Further, organizations are conducting safety training for under-14 riders to reduce fatalities and injuries.

Wisconsin will witness over 5.5% CAGR over the forecast timeline owing to the rising inclination toward snowmobiling activities. According to the ISMA, in 2017, the state had over 230,500 registered snowmobiles. The presence of around 25,000 snowmobiling trails further supports snowmobiling activities. Additionally, Florida and Pennsylvania hold a significant share in the market with the presence of ATV & UTV trails.

Competitive Market Share

Major U.S. off-road vehicles market participants include Arctic Cat Inc, Bombardier Recreational Products, Honda Motors, Kawasaki Motors Corporation, Polaris Industries, and Yamaha Motor Corporation. Other key players include Massimo Motors, Caterpillar, KTM AG, Hisun Motors, KYMCO, and BMS Motorsports.

Industry participants are expanding their manufacturing capability to reduce operating cost and strengthen their foothold in the U.S. off-road vehicles marketplace. For instance, in 2015 BRP announced to invest USD 118 million in its Valcourt manufacturing site to smoothen the material flow and reduce inventory holding cost. Moreover, industry players are expanding their product portfolio to serve larger consumer base. In December 2015, KYMCO announced the launch of Mongoose 90 S Kids and MXU 450i mid-sized ATVs.

Industry Background

U.S. off-road vehicles market size is gaining momentum owing to their capability to travel in rugged and natural terrains such as sand and snow. Regulatory bodies such as International Snowmobile Manufacturers Association (ISMA), Mississippi State Department of Health, National Survey on Recreation and the Environment (NSRE), Recreational Off-Highway Vehicle Association (ROVA), and United States Consumer Product Safety Commission (CSPS) govern the usage of ORVs. For instance, CSPS regulates the safety aspects related to ATV including driver safety, engine size, and age limitations.

Authors: Ankita Bhutani

Frequently Asked Questions (FAQ) :

The market size of U.S. off-road vehicles valued at around USD 9 billion in 2017.

The industry share of U.S. off-road vehicles is estimated to exhibit 5% CAGR from 2018 to 2024.

According to the analysts at GMI, sports application segment will expand at around 5% CAGR in the U.S. industry from 2018 to 2024.

ATVs will witness over 3% CAGR till 2024 due to surging youth inclination towards sports activities and introduction of national sports events like, GNCC Amateur Competition.

Presence of various ATV & SSV manufacturing facilities and increasing recreation programs, like California off-highway recreation program, being introduced are encouraging customer to opt for off-road vehicles.

Companies such as Honda Motors, Kawasaki Motors Corp., and Yamaha Motor Corporation are strengthening their manufacturing capabilities in the U.S., primarily to decrease operating costs and strengthen their business reach.

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Premium Report Details

  • Base Year: 2017
  • Companies covered: 13
  • Tables & Figures: 261
  • Countries covered: 1
  • Pages: 220
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