United States UTV Market size worth over $11.5 Bn by 2027
Published Date: May 17, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
U.S. UTV Market size is set to cross USD 11.5 billion by 2027, according to a new research report by Global Market Insights, Inc.
The growing emphasis of market players on enhancing their distribution channel network is expected to support the UTV industry growth in the U.S. Industry participants including Polaris and BRP are laying specialty stores and dealerships to enhance the customer reach and cater to the growing market demand for UTVs.
The integration of advanced technologies, such as independent suspension, electronic fuel injection (EFI), and dual clutch transmission (DCT), into utility vehicles will propel the market revenues. Key players are launching new vehicles integrated with these technologies to enhance their market share. In June 2020, Honda announced its 2021 line-up of Pioneer utility terrain vehicles with DCT technology.
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The increasing number of fatal accidents associated with off-road UTVs might act as a restraint to the market size through 2027. Several industry associations have reported incidents of underage driving of utility terrain vehicles, ATVs, and other off-road vehicles in the U.S., leading to accidents. However, awareness campaigns and youth seminars organized by market leaders and government authorities are expected to support the market outlook by reducing the number of accidents.
Analyst view: “Growing demand for UTVs in the U.S. can be attributed to the growing inclination of youth toward recreational sports and activities. The industry is witnessing a disruption with the launch of electric variants of UTVs.”
The UTV market in the U.S. experienced a decline in the first quarter of 2020 due to the rapid spread of the COVID-19 pandemic. To cope with this industry challenge, companies adopted several mitigation strategies such as remote working for employees and contact-less deliveries for customers. The market growth was stunted by temporary suspensions in manufacturing operations. In April 2020, BRP Group announced the temporary suspension of all powersports and marine manufacturing operations around the world owing to the rapid evolution of the COVID-19 pandemic.
Browse key industry insights spread across 331 pages with 541 market data tables & 36 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 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” in detail along with the table of contents:
High market growth of above 800cc side by side vehicles
The utility terrain vehicles with displacement above 800cc displayed a growth rate of over 6% in the market. The rising demand for UTVs above 800cc can be accredited to their high load bearing capacity as compared to the low displacement models. These vehicles offer lower operating cost for transporting goods over short distances and capability to work in harsh environments efficiently, driving the market size through 2027.
Companies are launching new models of UTVs with engines above 800cc to cater to the growing market demand for these vehicles from heavy-duty towing and load hauling applications. For instance, in September 2020, CF Moto launched its 2021 model of UFORCE 1000 EPS UTV. The side by side vehicle features a 1,000cc V-Twin engine and bench type seating for three passengers along with high towing capabilities.
High market share of gasoline utility terrain vehicles
Gasoline propulsion type side-by-sides dominated the U.S. UTV market with a share of over 65% in 2020. Over 410,000 gasoline utility terrain vehicles were sold in the U.S. in 2020; however, they are witnessing stagnant growth in the market. This trend can be accredited to the high maintenance cost of gasoline-propelled models. These vehicles attract consumers as they are characterized by low initial purchase costs compared to their diesel counterparts.
Proliferation of recreational areas in California
The California UTV market is projected to register highest CAGR of over 10% through 2027due to the presence of several recreational areas and off-road parks. California is home to more than 40 state-sponsored parks with off-road trails, which offer adventure and recreational experience to off-road enthusiasts. The presence of rocky mountain ranges that incorporate several public parks and forest lands has spiked the tourist recreational activities in the state, with special focus on off-road riding and mountain biking. Increasing influx of foreign and domestic tourists in California will improve the overall industry size.
The companies active in the U.S. UTV market focused on enhancing their customer relationships and made several service additions to boost sales during the COVID-19 pandemic. For instance, in May 2020, the power sports division of Honda Motor Company initiated a dealer-to-doorstep program. Through this initiative, the company offers remote deliveries of its power sports equipment in response to the COVID-19 pandemic.
Key participants in the U.S. UTV market include Polaris, Inc. HISUN Motors, Caterpillar, Inc., Deere & Company, Massimo Motors, Kawasaki Motor Corporation, KYMCO, Honda Motor Corporation, BRP Group, CFMoto, and Arctic Cat, Inc.