The global all-terrain vehicle market size is expected to reach USD 4.8 billion by 2025, registering a CAGR of 3.1% over the forecast period, according to a new report by Grand View Research, Inc. The development of recreational parks, off-road terrains, and trails is anticipated to boost the market demand for all-terrain vehicles (ATV). Moreover, governments’ efforts to enhance tourism and create a positive impact on local communities have proven to be beneficial for the sales of ATVs. For instance, the U.S. Forest Service launched the Travel Management & Off-Highway Vehicle (OHV) Program, intended to increase the popularity and awareness regarding the availability of trails in the region. Furthermore, in June 2018, the Canadian government invested approximately USD 1.7 million for the development of the motorized trail in the New Brunswick region, for which ATVs would be utilized.
The increase in advertisements and the growing popularity of off-road racing events are key factors driving the demand for all-terrain vehicles. For instance, the Desert Series Pro ATV championship conducted in January 2019 attracted many off-road vehicles and ATV enthusiasts. Furthermore, an increase in financial backing from sponsors is expected to boost market demand over the forecast period.
Improved economic conditions in the past few years in emerging economies such as China and India have led to higher purchasing power and higher disposable income of individuals. According to the Ministry of Statistics and Program Implementation, India, in 2017, the per capita income of an individual was 8% higher as compared to the previous year. According to the National Bureau of Statistics, China, the per capita income of an individual rose by 9.0% in 2017 as compared to the previous year. The rising spending capacity contributes to the growth of the travel and tourism sector. According to the World Travel and Tourism Council (WTTC), the global travel and tourism sector grew at 3.9% in 2018. The enhancement of the tourism sector has led to an increase in recreational activities, subsequently driving the demand for ATVs.
North America dominated the ATV market in 2018 owing to the presence of a diverse and vast landscape, which includes expansive forest space and mountain ranges. ATV manufacturers focus on developing safer and innovative products that can meet the various needs of consumers who desire to explore rough terrains. Furthermore, the overall production, exports, and global sales of the all-terrain vehicles are led by North America. The market in this region is characterized by the presence of prominent players. The use of ATVs is expected to increase in Europe as well for various military and defense purposes, hunting, transporting materials, and agricultural use.
Further key findings from the report suggest:
- The overall all-terrain vehicle market was valued at USD 3.9 billion in 2018 owing to the growing popularity of off-road sports activities and increasing number of trails and adventure parks
- The 400-800cc engine type segment accounted for a significant share of over 48.0% in 2018. The increase in demand for 400-800cc engine ATVs is attributed to the demand for utility purposes and search and rescue operations
- The Europe ATV market is projected to register a high growth rate over the forecast period owing to the increased demand for off-road vehicles such as ATVs in agricultural and military and defense applications
- Key players operating in the market include Polaris Inc.; American Honda Motor Co., Inc.; Bombardier Recreational Products (BRP); Yamaha Motor Corporation; and Arctic Cat Inc. (acquired by Textron Inc.).