ATV Market size worth over $5 Bn by 2027
Published Date: July 12, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
All-Terrain Vehicle (ATV) Market size is set to exceed USD 5 billion by 2027, according to a new research report by Global Market Insights Inc.
The growing demand for outdoor sports activities and recreational activities will drive the ATV industry growth. According to the report published by the Outdoor Industry Association in December 2020, nearly 50.7% of Americans participated in outdoor activities in 2019. Increasing number of forest trails and recreational parks are the major factors fueling the market demand.
The ability of ATVs to operate in rugged and challenging terrains and harsh environmental conditions is likely to boost the market growth. The compact size of ATVs offers higher output and torque, improving the maneuvering capability in challenging terrains and tight spaces. Higher operability and output in numerous terrains are supporting the demand of ATVs. Growth in recreational activities along with rise in tourism is driving the ATV market growth.
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One of the major factors challenging the growth of the market is the increasing number of fatalities due to carelessness, underage driving, and lack proper training to drive on rough terrains. For instance, as per the report published by the U.S. Consumer Product Safety Commission in February 2020, there were an estimated 81,800 ATV-related injuries reported in 2018. However, regulatory bodies, such as United States Product Safety and Commission and the Specialty Vehicle Institute of America (SVIA), are laying down stringent regulations to address safety in order to reduce the number of off-road accidents.
Analyst view: “High demand for ATVs in recreation, sports, and military applications owing to their versatile features including higher torque, maneuverability, and power output in rugged terrains will propel the industry growth.”
The COVID-19 pandemic adversely impacted the ATV market during first half of 2020 owing to global lockdown and strict travel restrictions to contain the virus. The supply chain disruptions and shortage of labor caused delay in product launches in the market. Moreover, the market witnessed a steady growth in the second half of 2020 especially in Europe and North America on account of rising preference toward engaging in outdoor sports activities without involving large crowds during the pandemic.
Browse key industry insights spread across 260 pages with 359 market data tables & 19 figures & charts from the report, “All-Terrain Vehicle (ATV) Market Size By Product (Youth, Adult), By Displacement (Below 400cc, 400 - 800cc, Above 800cc), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Growing participation of youth in sports events will drive the demand
The Europe youth ATV market is expected to observe a CAGR of over 10% through 2027 due to rising participation of youth in off-road vehicle events. The increasing number of youth racing events, such as Quadcross of European Nations and desert off-road race events, will create new market opportunities. The rising availability of numerous vehicle models with advanced technologies including anti-braking systems and continuously variable transmission will enhance the demand. Strict government regulations regarding minimum age requirements for driving ATV along with protective gear are providing a positive market outlook.
High demand for 800 cc engine owing to greater output and enhanced performance
The above 800cc engine demand in Asia Pacific held around 20% of the ATV market share in 2020, with over 5,000 units of new ATVs sold. The prominence of off-road sports activities, which require ATVs with higher displacement engines to deliver higher output, is contributing to the market demand. Manufacturers are developing vehicles to provide superior performance and sharp handling.
Growing demand in the European military application
The Europe ATV market size is expected to register a growth rate of more than 8% through 2027 impelled by rising off-road vehicles demand from the military sector. Companies are developing vehicles for defense forces with enhanced payload carrying capacity and mobility for tactical missions. For instance, in October 2020, Kia Motors Corporation, announced its plan of developing a new generation military ATVs. The standard vehicles will be equipped with automatic transmission systems, anti-spin regulator, rear parking assistant, satellite navigation, and around view monitor.
Industry participants are focusing on expanding their market share by developing new products. For instance, in April 2022, Arctic Cat announced the launch of new ATV Alterra 600 EPS as a part of its 2022 line-up. The new model features high capacity engine, drivetrain, and chassis to offer improved handling, high power, and greater servicing. Other strategies adopted by market leaders include partnerships and collaborations with technology providers to enhance their product features.
Some of the prominent ATV market players include Kia Motors Corporation, Yamaha Motor Corporation, Polaris Industries Inc., Kawasaki Motor Corporation, Honda Motor Co Ltd., Bombardier Recreational Products, Arctic Cat, and HiSun Motors.
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