Home > Automotive & Transportation > U.S. Utility Terrain Vehicles (UTV) Market

U.S. Utility Terrain Vehicles (UTV) Market Size By Displacement (Below 400 CC, 400-800 CC, Above 800 CC), By Propulsion Type (Gasoline, Diesel, Electric), By Application (Utility, Sports, Recreation, Military), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI4542
  • Published Date: May 2021
  • Report Format: PDF

Industry Trends

U.S. Utility Terrain Vehicles (UTV) Market size surpassed USD 7 billion in 2020 and is projected to grow at over 6% CAGR from 2021 to 2027. The growing adoption of UTVs for a variety of applications including farming, forestry, and movement of goods on construction sites is driving the industry demand.

The robust design and versatile features of utility vehicles coupled with side by side seating are supporting the overall U.S. UTV market. The enhanced storage space offered by these vehicles to carry equipment and supplies will positively influence the market statistics.

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Players including BRP Group and Polaris, Inc. are investing heftily in R&D activities to cater to the increasing demand for electric & low fuel consuming utility terrain vehicles. Additionally, robust government support and organizational policies for the development of a mature off-road & recreational infrastructure add up to the factors driving the industry growth.

The companies in the  market, including Yamaha and Honda, are working on enhancing their product capabilities. Market leaders are emphasizing on reducing the overall weight that enhances the vehicle’s weight to power ratio, increasing fuel efficiency. Increasing availability and accessibility of UTVs will support the market outlook. Market players are focusing on developing enhanced safety features, such as rollover cages, airless tires, and antilock braking systems integrated with UTVs.

One of the key factors challenging the market is high labor and infrastructure costs along with increasing tariffs and taxes associated with imports that affect the overall vehicle costs. Gasoline and electric UTVs are expected to witness a gradual increase in their prices according to the market forecast. Stringent compliance norms along with regulatory policies pose a threat to new players entering the regional market. However, the prices of electric utility terrain vehicles are expected to decline, supporting the industry through 2027.

Stakeholders of the U.S. UTV market ecosystem have been affected by the COVID-19 pandemic on various levels. Industry participants are witnessing a slow, yet steady growth in unit shipments due to a shift in consumer buying preferences. In response to the growing demand for utility terrain vehicles during the second half of 2020, several companies including Honda, Polaris, and BRP began offering lucrative financing solutions and discounts on their products. This aided the companies to attract more customers and increase their sales, mitigating the impact of the industry challenges.

High safety and enhanced features driving the 400 – 800 cc segment

The 400 – 800cc displacement segment captured around 35% market share in 2020 impelled by enhanced features and high safety offered by these utility terrain vehicles. Increasing off-road desert championships in the U.S. will drive the demand for 400 – 800cc UTVs.

These UTVs are witnessing a high adoption in rugged applications, such as farming and goods transportation activities, due to enhanced safety and high torque and power as compared to below 400cc variants. The vehicles integrated with roll cage offer passengers with enhanced safety while reducing the risk of fatal injuries. The companies in the U.S. UTV market are engaged in innovating and developing advanced vehicles that are anticipated to increase the market demand for 400 – 800cc utility terrain vehicles. For instance, in November 2020, Honda launched its 2021 model of Pioneer 500 UTV.  

Low operating costs will propel the electric segment

The electric vehicle segment is set to grow at a rapid rate with a CAGR of more than 15% through 2027. Over 4,000 units of electric UTVs were sold in the U.S. in 2020, supported by new product launches by industry players. In October 2018, Greenworks Commercial announced the availability of new models of the Stealth electric UTVs with an 80V li-ion battery and a capacity of 13.8kwh. The significantly low operating costs of electric UTVs compared to gasoline and diesel models are driving the market revenue.

Proliferation of the tourism industry to drive the recreation application

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Recreation application accounted for above 20% of the UTV market share in the U.S. in 2020. Utility terrain vehicles offer high ground clearance, superior engine capacity, and multi-mode driving capability. The proliferating travel & tourism industry in the U.S. will further support market growth. According to the U.S. travel & tourism industry statistics, the country recorded around 80 million inbound international tourists in 2019. The growing usage of utility vehicles for several recreational applications by tourists is driving the market statistics.

Southern U.S. market revenues driven by large off-roading areas

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The southern U.S. states including Florida, Mississippi, and Texas are characterized by favorable temperatures, extensive forest cover and large number of off-roading trails for recreational riding. Growing participation in recreational activities due to the presence of challenging trails and a wide variety of terrains, such as grasslands, deserts, water crossings, and mud pits, are driving the market revenues. Moreover, the region hosts some popular off-road trails in the U.S. including Ocala National Forest and Ride Royal Blue Resort, which will provide new market opportunities.

The state of Texas held the highest market share of about 9% in 2020. Texas offers vast stretches of open land and numerous riding options for both public and private off-road operations. According to the statistics reported by the Outdoor Industry Association, the state registers an average of USD 52.6 billion in outdoor spending annually. The off-road trails in the state are gaining traction among riders due to pine wood forests, spacious grasslands, scenic hill views, and cross water trails. The presence of several private off-road parks will support the market expansion.

High focus of industry players on growth strategies

U.S. UTV market players are focusing on enhancing their customer reach by reorganizing their marketing strategies. For instance, in November 2019, BRP Inc. announced that the company entered into a long-term partnership of Can-Am Off-Road with PBR (Professional Bull Riders) events. Through the PBR event, the company aims to strengthen its marketing campaign. The companies are also focusing on strategic new product launches, contributing to the market size growth through 2027.

Major players in the U.S. UTV market are Arctic Cat, Inc., BMS Motorsports, BRP Group, Caterpillar, Inc., CFMoto, Hisun Motors, Deere & Company, Honda Motor Co. Ltd., Kawasaki Motors Corporation, Massimo Motorsports LLC, Polaris, Inc., and KYMCO.

This market research report on U.S. utility terrain vehicles (UTV) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2021 to 2027 for the following segments:

Market, By Displacement:

  • Below 400cc
  • 400 – 800cc
  • Above 800cc

Market, By Propulsion Type:

  • Gasoline
  • Diesel
  • Electric

Market, By Application:

  • Utility
  • Sports
  • Recreation
  • Military

The above information has been provided for the following states:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Mexico
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming


Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market for utility terrain vehicles (UTV) in the U.S. hit USD 7 billion in 2020 and could grow at a 6% CAGR through 2027 with growing application in forestry, farming, and movement of goods at construction sites.
The electric UTV industry in the U.S. is projected to expand at a robust CAGR of over 15% between 2021 and 2027.
The U.S. market for 400-800cc UTVs is growing due to higher safety offered by these vehicles and their increased demand in off-road desert championships.
Recreation applications held about 20% revenue share of U.S. UTV market in 2020 and will grow as UTVs offer high ground clearance, multimode driving features, and superior engine capacity.
Texas captured more than 9% revenue share of U.S. UTV industry in 2020 and will grow as off-road trails gain traction among riders.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 13
  • Tables & Figures: 577
  • Countries covered: 40
  • Pages: 331
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