Off-Road Vehicles Market size worth over $25 Bn by 2027
Published Date: July 5, 2021 Authors: Ankita Bhutani
Off-Road Vehicles Market size is set to exceed USD 25 billion by 2027, according to a new research report by Global Market Insights, Inc.
Rising recreational activities and growing travel & tourism industry across the globe is likely to drive the ORV market growth. According to a report published by VisitBritain in December 2020, the UK is expected to witness 16.9 million inbound visits in 2021. The growing adoption of off-road vehicles for recreational activities will boost industry demand.
Enhanced performance on rugged terrains, lower maintenance costs, and improved fuel efficiency will strengthen the market revenues for off-road vehicles. Diversified applications in agriculture, construction, military, and sports activities owing to their superior technical advantages to support market statistics. Robust features offered by these vehicles such as enhanced power & torque, four-wheel drive systems, and differential locking systems will create new market opportunities.
Several market players including Polaris, Inc., BRP Group, Yamaha, and Honda are investing heavily in R&D to cater to the growing electric off-road vehicles market demand. These companies are emphasizing on reducing the overall vehicle weight to improve the vehicle’s weight to power ratio. Market players are also focusing on developing enhanced safety features such as airless tires, antilock braking systems, and rollover cages to prevent accidents & fatalities.
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Analyst view: “The demand for off-road vehicles is driven by the benefits of these vehicles such as high performance, efficiency, enhanced power, and torque on a rugged terrain. The market is predicted to see a growth in revenues due to strategic new product launches”.
Environmental degradation caused by off-road vehicles is a major factor hampering industry statistics. The increasing popularity of ATVs, UTVs, snowmobiles, and off-road motorcycles is damaging the soil quality and vegetation. Off-road vehicles also cause soil erosion, impacting the soil ecology. Off-roading activities can significantly alter the physical properties of coastlines through compaction and displacement of sand matrix. The vehicle traffic can decrease the organic matter in soils, thereby, hampering market revenues. The pollution caused by off-road vehicles harms soil dependent organisms, vegetation, and wildlife, which will negatively impact the market size through 2027.
The COVID-19 pandemic created industry challenges, such as supply chain disruptions, shortage of labor, and raw materials for market players, during the first six months of 2020. The market statistics observed a steady incline in the fourth quarter of 2020, especially in North America and Europe. The steady growth can be accredited to a shift in consumer preference toward outdoor motorsport and recreational activities during the pandemic. With the gradual lifting of lockdown measures, consumer behavior showed an inclination for outdoor recreational activities that can be practiced without involving large crowds.
Browse key industry insights spread across 200 pages with 251 market data tables & 17 figures & charts from the report, “Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles, Snowmobiles), 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:
The proliferation of UTVs/SSV over the forecast timeline
The Europe UTV/SSV segment is anticipated to see high market growth at around 9% CAGR through 2027. The growing adoption of UTVs/SSVs for a variety of applications including forestry, agriculture, sport activities, and construction is impelling market demand. The versatile features and robust design of UTVs coupled with side-by-side passenger seating and large storage space to carry equipment will augment the UTV segment.
High adoption of UTVs in farming and goods transportation activities led by high power & torque, multiple seating configuration, and safety features to spur market growth. Market leaders in the UTV industry are engaged in developing advanced utility terrain vehicles.
Growing demand for off-road vehicles in sports applications
The North America sports application segment held over 30% of the off-road vehicles market share in 2020. The increasing participation in trailing & racing adventure events is driving the adoption of off-road vehicles. Multiple configurations including higher efficiency, enhanced power, torque, and diversified engine options are fostering the market revenue. Additionally, lower maintenance cost and improved performance of off-road vehicles on a rugged terrain with enhanced safety features will support the regional market growth.
Europe market propelled by growing consumer inclination toward leisure activities
The Europe off-road vehicles market revenue is set to grow at 8% CAGR through 2027, with around 300 thousand new off-road vehicles sold in 2020. The increasing consumer spending on outdoor recreational activities to fuel the regional growth. Favorable climate, challenging terrain, and presence of off-road trails will drive the market share. The growing consumer inclination for leisure activities such as snow sports, adventure racing and motorcycles racing, snowboarding, snow skiing, mountain hiking, camping events to fuel the industry demand.
Companies are emphasizing on expanding their market reach by new model launches. For instance, in April 2021, Arctic Cat launched the new ATV Alterra 600 EPS for powersports enthusiasts as a part of its 2022 lineup. The model features a new engine, drivetrain, and chassis to provide more power. It also features an oversized air filter and high intake mounts to ensure ample airflow.
Major players operating in the market include Polaris, Inc., KTM AG, Deere & Company, Massimo Motors, Suzuki Motors Corporation, Yamaha Motor Co. Ltd., Honda Motor Company, Bombardier Recreational Products (BRB), Kawasaki Motors Corp., Caterpillar, and Arctic Cat.