The all-terrain vehicle (ATV) market is expected to witness robust growth by 2027 owing to escalating product demand across the globe. Moreover, growing interest in recreational activities is set to further facilitate industry expansion through the forecast period.
Recently, companies have been implementing expansion strategies to boost their consumer reach in profitable marketplaces, which has significantly improved the global competitive landscape. For instance, in July 2021, LyteHorse Labs, a Canada-based electric performance vehicle manufacturer specializing in ATVs, announced a manufacturing partnership with Mayco International, a Michigan-based automotive supplier, marking its entry into the United States.
Furthermore, the looming climate crisis is pushing industry players to focus on fleet electrification, which has positively impacted market outlook worldwide. For instance, in September 2020, Polaris, a manufacturer of ATVs and other electric vehicles operating out of Minnesota, joined forces with Zero Motorcycles, a US-based electric motorcycles company, to develop electric vehicles, including snowmobiles and ATVs.
The two firms inked a decade-long agreement that entails Polaris realizing its goal of having an electric version of every vehicle in its lineup by the year 2025. As a result, the improving product outlook has bolstered market demand in leading regions.
The all-terrain vehicle (ATV) market has been segmented based on product, application, displacement, and region. With respect to product, the market has been bifurcated into youth and adult.
The youth sub-segment is calculated to witness substantial growth by 2027, expanding at a considerable CAGR through the assessment timeframe. Increasing youth participation in sports activities, along with rising number of forest trails, is speculated to augment the demand for ATVs in the youth segment over the following years.
From the application perspective, the market has been divided into sports, utility, recreation, and military. The utility application of the all-terrain vehicle (ATV) market is estimated to garner a respectable valuation by 2027. Soaring adoption of ATVs in agricultural and construction activities owing to their enhanced performance, higher output, and torque, among other benefits, coupled with safety features present in the vehicles for preventing accidents, is likely to support segmental adoption through the forecast timeframe.
In terms of displacement, the market has been divided into above 800cc, 400cc-800cc, and below 400cc. The below 400cc sub-segment is slated to garner a sizable share in the all-terrain vehicle (ATV) market revenue by the end of 2027, registering a stable CAGR through the analysis time period. Surging utilization of ATVs with a displacement of below 400cc in youth recreational and sports activities is set to boost segmental expansion in the coming years.
On the regional spectrum, the Middle East & Africa all-terrain vehicle (ATV) market is anticipated to showcase notable growth at a CAGR of over 5% through the projected timeline. Proliferation of the domestic tourism industry is expected to propel the adoption of ATVs in the region over 2021-2027.