The global ATV market is expected to grow at a CAGR of around 5% during the forecast period. The market is driven by factors such as the rising demand for all-terrain vehicles for recreational purposes and the growing popularity of off-roading activities.
The rising number of sports and leisure activities that require all-terrain vehicles is one of the key factors driving the growth of the ATV market. ATVs are also increasingly being used in agricultural industry and military forces due to their excellent off-road capabilities.
Some of the key advantages of the market are mentioned below:
1) Increasing demand from end-use industries: The main driver for the growth of the ATV market is the increasing demand from various end-use industries such as sports and leisure, agriculture industry, out-door work, military forces, and others.
2) Technological advancements: Another factor driving the growth of the ATV market is the continuous technological advancements in terms of design and engine performance. Various manufacturers are offering advanced features in their products to gain a competitive edge in the market.
3) Growing popularity of off-road vehicles: In recent years, there has been a growing popularity of off-road vehicles among adventure enthusiasts and young people. This is expected to boost the demand for ATVs in coming years.
4) Favorable government regulations: Several governments across the globe have introduced favorable regulations regarding the use of ATVs, which is another key factor driving the growth of this market.
An all-terrain vehicle (ATV), also known as a quad, three-wheeler, or four-wheeler, is a vehicle designed for off-road use. ATVs are built to maneuver over rough terrain and include features such as large, knobby tires and long travel suspension that make them stable and comfortable to ride on all types of terrain. ATVs are available in a variety of sizes and styles to suit the needs of different riders. Sport ATVs are typically smaller and lighter than utility ATVs and are designed for racing and other high-performance activities. Utility ATVs are larger and heavier, with features that make them more capable of hauling cargo or pulling trailers.
The global all-terrain vehicle market is expected to grow from USD 7.5 billion in 2020 to USD 11.8 billion by 2031, at a CAGR of 4.8%.
The market is primarily driven by rising interest in off-roading and recreational activities among the younger population, growing agricultural industry, and increasing demand for all-terrain vehicles in the military forces.
The ATV market is restrained by the lack of availability of raw materials and the high cost of production. The ATV market is also affected by the stringent regulations imposed by the government on the manufacturing and sale of ATVs. However, several factors are going to boost the market.
The global all-terrain vehicle market is highly fragmented with the presence of numerous small and large manufacturers. Some of the key players operating in the market are Yamaha Motor Company, Ltd., Honda Motor Co., Ltd., Textron Inc., BRP Inc., Kubota Corporation, Polaris Industries Inc., Deere & Company, Arctic Cat Inc., and Suzuki Motor Corporation.
The sports and leisure application segment to form major portion of the market
The sports and leisure application segment is expected to be the largest contributor to the global ATV market. This growth is attributed to the increasing participation in recreational activities, such as off-roading and motocross racing.
The military forces Segment to be on top of the market
The military forces segment is also expected to experience significant growth during the forecast period. ATVs are used extensively by militaries across the world for various applications, such as reconnaissance,border patrol, and search & rescue missions. The growing demand for all-terrain vehicles from these sectors is expected to drive the market growth over the forecast period.
Asia-Pacific to dominate the market
The Asia Pacific is expected to be the largest market for ATVs during the forecast period. The region has witnessed an increase in demand for ATVs from countries such as China and India, owing to the growing popularity of off-roading and racing activities. Moreover, the availability of low-cost models in the market is another major factor driving the growth of the ATV market in the Asia Pacific region.
Covid-19 Impact & Market Status
The COVID-19 pandemic has had a significant impact on the ATV market. The outbreak of the pandemic has led to a decrease in demand for ATVs, as people are avoiding outdoor activities. This has resulted in a decline in sales of ATVs globally. In addition, the production of ATVs has been affected due to the lockdown imposed by various governments across the globe. This has led to a shortage of ATVs in the market.
Latest Innovations in the Global ATV Market: A Snapshot
• In January 2019, Broadcom Inc. announced that it had completed the acquisition of CA Technologies. This acquisition helped Broadcom to enter into new markets such as cloud and hybrid infrastructure management.
• In February 2019, IBM Corporation announced that it had completed the acquisition of SPSS Inc., a leading provider of statistical analysis software. This acquisition helped IBM to expand its portfolio of predictive analytics and machine learning solutions.
• In March 2019, Oracle Corporation announced that it had completed the acquisition of DataScience.com, a leading provider of data science and machine learning platform. This acquisition helped Oracle to enter into the data science and machine learning market.
ATV Market Scope
|Revenue forecast in 2031
|USD 11.8 billion
|CAGR of 4.8% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Yamaha Motor Company, Ltd., Honda Motor Co., Ltd., Textron Inc., BRP Inc., Kubota Corporation, Polaris Industries Inc., Deere & Company, Arctic Cat Inc., and Suzuki Motor Corporation.
Key Segment of Global ATV Market
By Type Overview (USD Billion)
• Less than 200
• More than 700
By Application Overview (USD Billion)
• Sports and Leisure
• Agriculture Industry
• Out-door Work
• Military Forces
By Region Overview (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa