Off-road Vehicle Market Outlook, 2030
The global off-road vehicle market size was valued at $12,365.18 million in 2020, and is projected to reach $22,618.45 million by 2030, registering a CAGR of 7.3%. North America was the highest revenue contributor, accounting for $6,308.71 million in 2020, and is estimated to reach $10,969.95 million by 2030, with a CAGR of 6.8%.
Off-road vehicle refers to a mobility solution type designed to operate on public roads as well as rough terrain. Off-road vehicle has a characteristics including open treads, large tires with deep, and a flexible suspension. Majority of the off-road vehicles are equipped with four wheel drive system (4WD) or all-wheel drive (AWD) to attain the operational requirements. Moreover, off-road vehicles have a wide range of applications in the area of good carriers, agricultural applications, and passenger commute. In recent years, electric driven off-road vehicles are gaining momentum, owing to its fuel-efficient operations along with effective noise reduction level. Use of off-road vehicles are regulated by stringent government rules and regulations for improved safety.
Factors, such as growth in trend of recreational activities and adventure sports and increase in penetration of AWD and 4WD vehicles are expected to drive growth of the off-road vehicle market. However, high maintenance cost of off-road vehicles and ban on ATV and UTV driving in wildlife area due to terrain damage restrain the market growth. On the contrary, development of electric powered off-road vehicles and expansion of dealer network for effective product reach are projected to offer lucrative growth opportunities for the market players.
Market Segments
The global off-road vehicle market is segmented on the basis of displacement, vehicle type, end user vertical, and region. On the basis of displacement, the market is divided into less than 400 (CC), 400 to 800 (CC), and more than 800 (CC). On the basis of vehicle type, it is categorized into ATV, UTV, snowmobiles, and NEV. By end use vertical, it is fragmented into agriculture, military, sports, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Market Players
Leading players and their key business strategies have been analyzed in the report to gain a competitive insight into the market. Key players covered in the off-road vehicle market report include BRP Inc., CFMOTO, Deere & Company, Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., KUBOTA Corporation, Mahindra & Mahindra Limited, Polaris Inc., Textron Inc., and Yamaha Motor Co., Ltd.
By Displacement
Global Off-road Vehicle Market by Displacement, 2020-2030, ($Million)
Increase in trend of recreational activities and adventure sports
In recent years, sports enthusiasts and tourists are inclining toward trails of off-road vehicles such as UTV and ATV along with related activities for recreational and sport activities purposes. Several leisure activity organizers and tourism councils are introducing UTV and ATV related activities by building tracks and sport setups for these vehicles to attract and retain visitors. For instance, in May 2018, adventure event organizer, ATV Circuit launched track to ride ATV in Noida, India. ATV Circuit offers a complete off-road experience with a track of 1.5 km for customized 4x4 all-terrain vehicles ranging from 80 cc to 350 cc. This is aimed to witness a positive trend toward adventure sports. Moreover, several countries are organizing yearly championships, which are gaining popularity at a remarkable rate as anyone capable of driving ATV can participate in the race. Therefore, increase in trend of such adventure sports attracts tourists and propels demand for ATV and UTV vehicles, which, in turn, support the off-road vehicle market growth.
By Vehicle Type
NEV segment is projected as the most lucrative segments
Increase in penetration of the AWD and 4WD vehicles
End consumers of off-road vehicles are demanding more output efficient and optimum performance high-end driving operations, owing to operational conditions as these vehicles are meant to operate on uneven terrain. Moreover, majority of off-road vehicle manufacturers are developing these drive systems to cater to changing requirements of end users. Furthermore, demand outlook of end users has shifted more toward added comfort, and driving dynamics. Changing requirements of the end consumers is gaining traction for four-wheel drive and all drive wheel drive off-road vehicles to effectively operate on the uneven terrain. In recent years, adoption of AWD and 4WD utility vehicles penetration has increased drastically and is expected to maintain the momentum in upcoming years, which is anticipated to support growth for off-road vehicles in the upcoming years.
By End Use Vertical
Sports segment is projected as the most lucrative segments
Development of electric powered off-road vehicles
In recent years, all mobility solutions have witnessed drastic changes, in terms of technological evolution. Hence, to cater to changing demands of consumers such as cost-effective and operational proficient transportation along with fuel-efficient mobility requirements, market players are relying on electrical components, owing to their output efficiency and lightweight, thus manufacturing electric driven off-road vehicle solution. For instance; in March, 2021, Polaris Industries, Inc. planned to launch 2022 electric RANGER utility side-by-side in late December 2021. This off-road vehicle is developed partnership with Zero Motorcycles. Moreover, emission from vehicles is a crucial factor as harmful greenhouse gases are released, which increase environmental and health concerns.
Thus, governments across the globe are implementing vehicle emission norms to control greenhouse emission and maintain environmental balance. Manufacturers need to comply with these regulations to control the emission level. For instance, from April 2020, the Government of India implemented BS6 emission standard to control outflow of air pollutants from vehicles. Thus, all these factors collectively escalate demand for electric driven off-road vehicles. Hence, to cope up with changing mobility solutions, market participants need to develop electric driven solutions.
By Region
Asia-Pacific would exhibit the highest CAGR of 8.6% during 2021-2030.
COVID-19 impact analysis
During COVID-19, the overall mobility industry witnessed high financial losses and significant uncertainties in business operations as majority of governments restricted international commute to control spread of the virus. For the off-road vehicle market, 2020 was witnessed as a negative performing year, owing to negative demand and supply outlook from COVID-19 crisis restrictions and supply chain disruptions. Market participants of off-road vehicles are following certain approaches to manage operations by slashed budgets, extended equipment lifecycles, decreased staff sizes, and reduced salaries in short term to overcome financial downturn.
Key Benefits For Stakeholders
- This study presents analytical depiction of the global off-road vehicle market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall off-road vehicle market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
- The current market is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Key Market Segments
By Displacement
- Less than 400 (CC)
- 400 to 800 (CC)
- More than 800 (CC)
By Vehicle Type
- ATV
- UTV
- Snowmobiles
- NEV
By End User Vertical
- Agriculture
- Military
- Sports
- Others
By Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- LATAM
- Latin America
- Middle East
- Africa
KEY PLAYERS
- BRP Inc.
- CFMOTO
- Deere & Company
- Honda Motor Co., Ltd.
- Kawasaki Heavy Industries, Ltd.
- KUBOTA Corporation
- Mahindra & Mahindra Limited
- Polaris Inc.
- Textron Inc.
- Yamaha Motor Co., Ltd
Off-Road Vehicle Market Report Highlights
| Aspects | Details |
 By Displacement |
|
 By Vehicle Type |
|
 By End User Vertical |
|
 By Region |
|
 Key Market Players | KAWASAKI HEAVY INDUSTRIES, LTD., BRP INC., CFMOTO, DEERE & COMPANY, YAMAHA MOTOR CO., LTD., KUBOTA CORPORATION, HONDA MOTOR CO., LTD., MAHINDRA & MAHINDRA LTD., TEXTRON INC., POLARIS INC. |
Analyst Review
The global off-road vehicle market is expected to witness significant growth, owing to adoption of off-road vehicles in various applications such as agricultural and military and increase in trend of leisure and recreational activities. Adventure sports are gaining traction from past few years for which off-road vehicle racing is becoming popular event in majority of countries across the globe. In addition, NEV (Neighbourhood Electric Vehicle) is a compact commute solution mainly used in leisure and short distance commute. It is expected to hold a leading market share in the global off-road vehicle market.
The global off-road vehicle market is a fairly consolidated market in which countable market participants are operating in the global market. Market participants are focused to develop their sales footprints by expanding dealer network and introduce new product lines of off-road vehicles to cope up with changing requirement of end users. Numerous developments have been carried out by top companies, such as BRP Inc., Deere & Company, Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., Kubota Corporation, Polaris Inc., Textron Inc., and Yamaha Motor Co., Ltd., which supplements growth of the global off-road vehicle market. Impacts of COVID-19 significantly affected the global off-road vehicle market in 2020. Furthermore, the market witnessed negative growth or significant downfall in 2020, and is expected to witness a recovery in 2022.
The global off-road vehicle market was valued at $12,365.18 million in 2020, and is projected to reach $22,618.45 million by 2030, registering a CAGR of 7.3%.
The increased demand for electric driven off-road vehicle solution to support the low carbon footprint initiatives by the policymakers
The report sample for global off-road vehicle market report can be obtained on demand from the website.
ATV, UTV, Snowmobiles, and NEV are the different types of off-road vehicles
Off-road vehicle refers to a mobility solution type designed to operate on the public roads as well as rough terrain.
The company profiles of the top players of the market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry along with their last three-year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated
The U.S. and China are key matured markets growing in the global off-road vehicle market
By Displacement, the Less than 400 (CC) segment is expected to gain traction over the forecast period
Based on the off-road vehicle market analysis, Asia-Pacific region accounted for the highest revenue contribution in 2020 and is expected to see lucrative business opportunities during the forecast period
Product Launch product development, partnership, and expansion are the top most competitive developments which are adopted by the leading market players in the global off-road vehicle market
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