Electric Off-Road Vehicles Market size worth $250 Mn by 2027
Published Date: May 6, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Electric Off-Road Vehicles Market size is set to exceed USD 250 million by 2027, according to a new research report by Global Market Insights, Inc.
The growing travel and tourism industry across the globe will provide new opportunities to the electric off-road vehicles industry growth. As per the industry statistics reported by the Tourist Board of Italy, the country recorded a tourist footfall of 96 million in 2019. The high inclination of tourists toward off-roading activities will drive the market demand.
The increasing popularity of electric off-road vehicles can be attributed to the rising concerns related to the harmful effects of vehicular emissions. Vehicles and their fuels are significantly and rapidly contributing to air pollution. According to the U.S. EPA, over 70 million tons of pollution were emitted into the atmosphere in 2019. Increasing environmental awareness has resulted in the growing electric off-road vehicles market.
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Analyst view: “The demand for electric off-road vehicles is driven by the benefits of these vehicles such as low maintenance cost and zero emissions. The market is expected to witness a growth in revenues due to strategic new product launches”
The growing number of ATV, UTV, and off-road motorcycle-related accidents is a major market factor hampering the electric off-road vehicles industry. Factors, such as underage driving, negligence of rules & regulations, and ignorance toward safety measures, can result into fatal injuries. However, government organizations such as ATV Safety Institute and All-Terrain Vehicle Industry European Association (ATVEA) are taking initiatives for the responsible usage of electric off-road vehicles to reduce fatalities and injuries due to accidents. Such government initiatives will provide a positive outlook to the electric off-road vehicles market.
The market statistics of electric off-road vehicles witnessed a steady incline in 2020, especially in Europe and North America. Shift in consumer inclination toward outdoor recreational activities during the pandemic is likely to showcase steady market growth. With gradual leniency in lockdown measures, consumer behavior showed a preference for outdoor recreational activities that can be practiced without engaging in large crowds. The pandemic created industry challenges, such as supply chain disruptions and shortage of raw materials for market players, during the first six months of 2020.
Browse key industry insights spread across 170 pages with 215 market data tables & 20 figures & charts from the report, “Electric Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles), By Application (Utility, Sports, Recreation, Military), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The proliferation of electric off-road motorcycles over the forecast timeline
In 2020, over 600 electric off-road motorcycles were sold in Europe. Lower-weight, compact size, and easy maintenance as compared to conventional off-road motorcycles are the key factors driving the regional electric off-road vehicles market revenue.
Companies including KTM, Zero Motorcycles, and TACITA are making investments in developing advanced technologies to enhance the rider experience. For instance, TACITA integrates an electric pump liquid cooling system that aids in stabilizing the temperature of the electric motor and controller in its electric off-road models. Similarly, Zero Motorcycles incorporates swappable batteries in its motorcycles, allowing the rider to replace the battery to enhance the range. The increasing number of adventure & sports events globally will support the market representation.
Growing demand for electric off-road vehicles in utility applications
The North America utility application segment held around 15% of the electric off-road vehicles market share in 2020. Electric UTVs and ATVs are gaining popularity in utility application. Consumer shift toward these vehicles in agriculture, forestry, and goods transportation applications due to their efficient & safe operations. Low maintenance requirements of electric off-road vehicles as compared to conventional ICE vehicles are further fueling the market demand in the utility application.
Supportive government policies for EVs in Europe will enhance market revenues
The Europe electric off-road vehicles market is forecast to witness 10% CAGR between 2021 and 2027. In addition to growing consumer spending on outdoor recreational activities, the growth can be attributed to supportive government policies for the adoption of electric vehicles. The development of robust charging infrastructure is one of the key factors supporting the regional market. The European Commission’s proposal to install over 1.3 million publicly accessible EV chargers by 2030 will support the off-road electric vehicles industry.
The French government has rolled out plans to install more than seven million EV chargers in the country over the coming years. Europe has an abundance of UTV trails and has witnessed increasing participation from drivers in recreational activities, further influencing the market size through 2027.
The companies are emphasizing on expanding their market reach by growing their presence on digital platforms. For instance, in April 2021, Hisun Motors launched its new website with an aim to enhance the customer experience. The company launched its Sector E1 electric off-road vehicle model in June 2019. Other prominent strategies adopted by market leaders include strategic partnerships and alliances that help them to grow in the electric sector.
Major electric off-road vehicles market players include Polaris, Inc. LINHAI, Alke S.r.l, DRR USA, Daymak, Inc., Ecocharger Quad Bikes, KTM AG, HISUN Motors, Massimo Motors, Intimidator, Electric Motion, TACITA S.r.l, and Zero Motorcycles.