All Terrain Vehicles Market Report

Market Insights

"The global all-terrain vehicles market size was estimated at USD 4.3 billion in 2021 and is likely to grow at a CAGR of 4.8% during 2022-2027 to reach USD 5.7 billion by 2027."

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ATV or All-Terrain Vehicle usually refers to vehicles that have specialized treads or wheels allowing them to commute on off-road terrain. ATVs are specifically designed to travel on rocks, snow, and various difficult terrain. They are generally equipped with low-pressure tires, a seat to accommodate one or more people, and handlebars for steering. ATVs are well-known for their mobility and off-road capabilities. These vehicles are typically used off-road; however, a few regions allow them to be driven on public routes.

Market Dynamics

Market Drivers

The prime factors that are driving the market are –

• Rising popularity of adventure sports and outdoor recreation, the growing tourism industry.
• The growing use of ATVs for various other purposes like farming, construction, military operations, surveying and patrolling, law enforcement, forestry, and others.
• Various technological advancements in ATV engines and the introduction of new advanced ATV models.
• The increasing demand for sustainable and eco-friendly vehicles.
• The high cost of ATVs and safety concerns of customers regarding ATVs, deterring potential buyers.
• The presence of stringent government regulations regarding the use of ATVs.

Market Trends

The All-Terrain Vehicle (ATV) market generally refers to the sales and distribution of ATVs and the products and services related to ATVs. Off-road vehicles designed for application on a variety of terrains including sand, mud, snow, and rough terrain are referred to as ATVs.

ATVs were introduced to the North American market in 1971 by Honda Motors. Other Japanese major motorcycle manufacturers (Yamaha, Kawasaki, and Suzuki) entered the North American ATV market in the late 1970s and early 1980s. The growth in the ATV market attracted North American companies like Polaris Industries, Arctic Cat, and BRP Inc., which entered the ATV market in 1985, 1995, and 1998 respectively. In addition to major global players, there are a number of other Chinese and Taiwanese manufacturers who produce low-combustion chamber engine-based ATVs for the local market.

The market includes the sale of different types of ATVs- sports ATVs, utility ATVs, and youth ATVs. The ATV market also comprises the sale of accessories and components related to ATVs, such as tires, wheels, suspension systems, and engine parts.

Side by Side is another off-road vehicle type and offers many advantages over ATVs, such as a better riding experience, rollover protection bars, and ease of mobility. Over the last ten years, the Off-road industry has noticed a continuous shift from ATVs to Side-by-Side vehicles.

Covid-19 Impact

Unlike other vehicles, such as cars and commercial vehicles which recorded a tremendous decline amid the pandemic, ATVs emerged as a rising star and recorded magnetic growth amid the pandemic, mainly driven by an extraordinary boost in the North American market. Overall, the ATV market registered over 20% growth in the year 2020 in terms of the number of vehicles sold.

Based on the primary interview results conducted across the value chain, it is estimated that the market may maintain its dazzling growth momentum in the near future. Also, the long-term growth would be healthy keeping the transition from ATVs to SSVs in mind.

Segments Analysis

Vehicle Trends

"The utility segment accounted for the largest market share."

The market is classified as utility, recreational, sports, and youth. The Utility is estimated to remain the most preferred vehicle type in the market over the next five years. All the major players have a large product offering targeting the utility segment.  The Sports Vehicle type is expected to grow at the fastest rate of 6% during the assessment period of 2022-2027. This is majorly due to the increased applications of ATVs in sports and recreational activities.

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Application Trends

"The sports segment accounted for the largest market share."

The market is segmented as sports, entertainment, agriculture, military, hunting, and others. The Sports Application segment accounted for the largest market share of more than 30% in 2021 and is projected to expand further at a steady CAGR from 2022 to 2027. More than 50% of ATV sales come from sports and entertainment applications.These applications are expected to remain the largest types in the next five years as well, owing to an increase in the demand for ATVs for sports applications such as racing in hilly, desert, and ice regions. In addition, the increasing number of adventure enthusiasts around the world also influences the growth of this segment.

Regional Insights

"North America accounted for the largest market share."

North America is expected to remain the largest market for all-terrain vehicles during 2022-2027. The high demand for power sport vehicles including ATVs in the military, agricultural, sports, entertainment, hunting, forestry, mining, and construction activities. The Year 2020 proved to be invigorating for ATV manufacturers, particularly in North America. The demand for ATVs soared extremely high, reaching new heights. Asia-Pacific is expected to witness the highest CAGR of 6.4% during 2022-2027. Markets, such as Australia, China, and India, generate a sizeable demand for ATVs as well as other power sports vehicles.

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Key Players

The following are the key players in the all-terrain vehicles market (arranged alphabetically).

• Arctic Cat Inc.
• BRP Inc.
• Honda Motor Co., Ltd.
• Kawasaki Motors Co., Ltd.
• Polaris Inc.
• Suzuki Motor Corporation
• Yamaha Motor Co., Ltd.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s all-terrain vehicles market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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