The off-road vehicles market is expected to witness significant growth by 2027 driven by the prevalent demand for recreational activities, such as camping, hiking, and other adventure sports. Additionally, automotive manufacturers are increasingly focusing on electrification of vehicles to make them more environmentally sustainable, which is anticipated to further fuel market growth over the forecast period.

Due to the raging COVID-19 pandemic, travel restrictions forced people around the world to vacation in COVID bubbles in the safety of their own vehicles to remote places to curtail the risk of exposure to the coronavirus. Thus, pandemic-induced lockdowns, travel bans in most countries, and surging need for travel has been favorable for the demand of off-road vehicles across the globe.

Additionally, more and more governments across leading regions are signing ordinances to allow off-road vehicles to drive on roads, which has positively influenced market outlook. For instance, in June 2021, Allegan County, Michigan, approved an ordinance permitting off-road vehicles to drive on around 1,200 miles of county roads.

Furthermore, evolving emission standards have encouraged automotive manufacturers to focus on battery-electric vehicles, which has unveiled massive growth avenues for the market. For instance, in July 2021, Jaguar Land Rover (JLR) announced the next step in its zero-emission plans. Later this year, the automaker is set to commence the testing of a hydrogen fuel-cell prototype derived from its Land Rover Defender.

JLR said that it would be testing the hydrogen Land Rover Defender to validate key features like off-road capacity and fuel consumption. The company, which plans on going electric by 2025, is also working on deploying six electric models under its off-road Land Rover name in the coming five years.

For comprehensive assessment, the off-road vehicles market has been segmented on the basis of vehicle, application, and region. With respect to vehicle, the market has been divided into ATV, off- road motorcycles, SSV/UTV, and snowmobiles.

The off-road vehicles market from the snowmobiles segment is estimated to grow at a CAGR of over 6.5% through the projected timeline. Increasing prominence of adventure and winter sport activities, including sky skiing, snowboarding, and motor sledging, will drive the adoption of snowmobiles in North America, which is expected to fuel segmental expansion in the coming years.

From the application perspective, the off-road vehicles market has been categorized into utility, recreation, sports, and military. The utility sub-segment holds a considerable share in the off-road vehicles market and is estimated to expand at a significant pace over 2021-2027. Proliferation of off-road vehicles owing to enhanced performance, higher output, torque, and precision, coupled with safety features to prevent accidents, is likely to support the growth of the segment through the forecast timeframe.

In the regional landscape, the Middle East & Africa off-road vehicles market is calculated to grow at a sizable CAGR to garner a considerable revenue by 2027. Rising adoption of UTVs, ATVs, off-road motorcycles for dessert safaris and other recreational sports is speculated to drive regional industry growth over the analysis period.