U.S. UTV Market worth over $5.5bn by 2026
Published Date: February 17, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
U.S. Utility Terrain Vehicles (UTV) Market size is set to surpass USD 5.5 billion by 2026, according to a new research report by Global Market Insights, Inc.
The rapidly developing outdoor recreational industry across the U.S. is driving the UTV market in the United States. As per the U.S. Outdoor Industry Association (OIA), in 2017, the overall outdoor recreation economy was valued at over USD 427 billion and accounted for about 2.2% of the total GDP. The U.S. consists of around 57,000 miles of streams, 150,000 miles of trails, and around 439 wilderness areas, providing ample market opportunities and attracting industry participants.
In September 2019, Polaris announced a grant of over USD 90,000 to various ATVs and organizations across the U.S. The grant was offered as a part of its T.R.A.I.L.S. grant program that focuses on the development of the off-road riding industry. This will lead consumers to participate in more recreational and sports activities, driving the market growth.
The growing outdoor activities participation will provide a positive outlook to the market. According to the OIA, there are over 760 million people visiting the state parks annually with approximately two visits per person. Additionally, in 2017, more than 48% of the U.S. population took part in at least one outdoor activity, offering ample opportunities for the market expansion. Increasing involvement in recreational activities will further propel the U.S. UTV market revenue.
Harmful environmental impact & safety concern is the major factor challenging the industry expansion. These vehicles churn up the soil, damage the root system, and accelerate soil erosion, which increase sedimentation in waterways. Additionally, loud engine noise disturbs the wildlife and frightens animals, restricting their usage in forest, thereby hampering the market demand.
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Rising demand for high-speed and powerful UTVs across the United States
The above 800 cc segment accounted for around 40% of the U.S. UTV market share in 2018. UTVs having more than 800 cc displacement will witness growth owing to their high load-bearing capacity. These vehicles offer lower operating cost for transporting goods over short distances as well as the capability to work in harsh environments efficiently. Several regulatory bodies are providing operational training courses to forest service employees to ensure safe & responsible driving, supporting the market size.
Browse key industry insights spread across 253 pages with 365 market data tables and 28 figures & charts from the report, “U.S. Utility Terrain Vehicles (UTV) Market Size By Displacement (Below 400 CC, 400-800 CC, Above 800 CC), By Application (Utility, Sports, Recreation, Military), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Proliferating construction sector is creating the demand for advanced utility vehicles
The utility segment accounted for around 30% of the market share in 2019. The increasing construction spending across the U.S. will increase the adoption of these vehicles in utility applications. These vehicles are used at construction sites due to several features and capabilities including adequate load-hauling, enhanced stability, hassle-free maintenance, and maximum comfort, driving the market expansion.
Players operating in the market are introducing application specific UTVs to cater to consumer demands. For instance, in November 2017, Caterpillar announced the launch of its two new models, CUV82 and CUV102D. These vehicles are specially designed to work in several utility applications including agriculture and construction.
Presence of extensive forest cover across Midwestern U.S. is creating the demand for UTVs in recreational application
Northeastern U.S. has an extensive forest cover and offers several recreational market opportunities to riders. The legalization of these vehicles for hunting has created new avenues for the market in the region with several hunting enthusiasts using UTVs to chase & hunt wild animals. The heavily forested interior offers easily navigable trails, which are gaining popularity among new and amateur riders, driving the UTV market in the U.S. The region also permits the use of abandoned rail beds as UTV driving zones, which are the primary attraction for recreationists. These initiatives by the local government will provide opportunities to the players operating in this market.
Majority of south & central Maine is a popular hunting spot for tourists who are increasingly using UTVs for covering vast stretches of the forest land, contributing to the regional industry growth. The state offers well-maintained, multi-use trails spanning across several recreational areas and scenic woods. Robust collaboration between private landowners, clubs, and state associations has led to the availability of quality and diverse trail riding, which has promoted the adoption of utility terrain vehicles as a recreational option, attributed to the market trend.
The market players are focusing on employing strategic alliances, improving their research capabilities to offer new vehicles, and providing efficient aftersales services for strengthening their position and gaining enhanced market share. For instance, in September 2019, BRP, Inc. announced the launch of its two new models under its Can-Am brand. This aided the company to enhance its product offerings.
Some of the market leaders operating in the U.S. UTV market are Yamaha Motor Co., Ltd., Polaris, Inc., Kawasaki Motors Sports, LLC., KYMCO, Hisun Motors, Caterpillar Inc., BRP, Inc., Deere & Company, and Arctic Cat, Inc.