Off-Road Vehicle Market Share Report – Growth & Demand 2030

Coverage: Off-Road Vehicle Market covers analysis By Vehicle Type (All-terrain Vehicle (ATV), Utility Task Vehicle (UTV), and Snowmobile), By Fuel Type (Gasoline, Diesel, and Electric), Application (Sports, Agricultural, Recreation, Military, and Others), and Geography

  • Report Code : TIPMC00002758
  • Category : Manufacturing and Construction
  • No. of Pages : 150
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The off-road vehicle market is expected to grow from US$ 22.78 billion in 2022 to US$ 33.39 billion by 2030; it is estimated to grow at a CAGR of 4.9% from 2022 to 2030.

Analyst Perspective:

The off-road vehicle market is driven by rising consumers' disposable income with the surge in outdoor recreational activities among individuals around the globe. Off-road vehicles are used for performing various recreational activities, including traveling, trail riding, sports, and among others. Also, rising demand for all-terrain vehicles for agriculture and gardening purposes is driving the global off-road vehicles market. All-terrain vehicles are used in agriculture & gardening for performing several activities, including field plowing, lawn mowing, and seed spreading. The growing availability and popularity of off-road vehicles among farmers and traveling enthusiasts is the major driving factor for the market growth.

Off-road traveling is growing popular among people, with rising outdoor spending in developed countries, including the United States, Canada, Germany, and France. Globally, there have been established offroad community groups that participate in the events, trips, meet-ups, and among others.

However, the high cost of manufacturing and higher pricing of these vehicles hinder market growth. The increasing popularity of adventure sports activities and the surge in spending on recreational activities are expected to drive the global off-road vehicle market. According to the U.S. Bureau Analysis, the outdoor recreational activities spending for all 50 states in the United States accounted for US$ 454.0 billion, which is 1.9% of its gross domestic product (GDP) in 2021. Increased consumer preference for adventure tourism, post-COVID-19 pandemic, is propelling the global market growth. Recreational activities spending has significantly increased owing to people’s desire for outdoor traveling in the safe, and rising demand for entertainment options is driving the market growth. Rising outdoor activities such as hiking, trailing, and off-roading traveling are the major tourism activities spent by consumers.

However, increased demand for battery-operated electric off-road vehicles for recreational activities is expected to propel the market growth.  Also, the major players in the global market are developing and launching new electric vehicle models for off-road traveling. For instance, in April 2023, Toyota Motor Corporation planned to launch around ten new battery-powered electric vehicle models by 2026. For this, the company planned to set up a new factory for the battery EVs. John Deere, the agricultural and farm equipment manufacturer, launched utility task vehicle models for farming applications. The company planned to launch various models of utility vehicles for agriculture purposes owing to increased demand by farming customers. In July 2022, John Deere Company launched an Autocracy automated assistance-based steering system for its utility task vehicles. This steering system was created to help farmers to be more productive with less effort.

Off-road vehicles are used for several applications, including carrying goods, farming, and the adventurous activities of traveling. Recently, electric offroad vehicles have gained popularity owing to rising demand for fuel-efficient operations with increased noise reduction levels. However, the use of off-road vehicles requires strict government policies, rules and regulations for improved safety, hindering the market growth.

The rising trend of outdoor recreational activities and surge in consumer spending on adventurous sports and outdoor trips across European countries is expected to drive the market growth. According to the European Union Organization Report in 2021, EU countries residents spent more than US$ 307.06 billion on tourism trips, with around 62% on domestic adventurous trips. Several outdoor activities are using all-terrain vehicles and utility task vehicles for traveling in Europe, which is projected to create lucrative opportunity for market growth during the forecast period.

Market Overview:

Off-road vehicles are vehicles with the capability to drive on paved, gravel, and rough surfaces. These vehicles consist of flexible suspension systems with high ground clearance and are commonly used on rough roads. Rising penetration and launching of all-wheel drive and four-wheel drive vehicles for consumers around the globe is driving the demand for the global off-road vehicles market. For instance, in July 2023, The Maruti Suzuki automotive manufacturer launched Jimny off-road sport utility vehicle (SUV). This SUV is launched with four-wheel drive and is equipped with 4X4 technology.

Moreover, off-road vehicle original equipment manufacturers are developing and launching advanced power-assisted drive systems to meet the changing consumer's requirements. Furthermore, the demand of the end-users shifted towards more comfortable driving systems, which is propelling the market growth. For instance, in August 2023, Toyota Motor Corporation launched a "250" Series Land Cruiser. This land cruiser launched with advanced features for off-road traveling that allow people to travel safely from remote locations.

Strategic Insights

Market Driver:

Increasing Spending on the Outdoor Recreational Activities with Surge in the Disposable Income is Driving the Market Growth

Rising consumer spending on outdoor recreational activities with increasing disposable income around the globe is a major driving factor for the off-road vehicle market. Rising consumers spending on the mobility sector with the rapid evolution in terms of technologies in the automotive sector drives the market growth. Hence, to meet the consumers' changing demands, the key players are launching a cost-effective and fuel-efficient transportation system. For instance, in March 2021, Polaris, Inc. launched an electric RANGER utility task vehicle. This off-road vehicle was developed by partnering with Zero Motorcycles. Such increased demand for off-road electric vehicles with government support and funding is expected to create ample opportunity for market growth. For instance, the US Department of Transportation launched the Federal Highway Administration NEVI Formula Program to provide the funding to deploy electric vehicle charging stations.

Off-road vehicles have gained popularity across North America and European countries owing to increasing consumer spending on outdoor sports activities. However, off-road vehicles are widely used in various sectors, including mining, agriculture, construction, sports, and many other sectors. Additionally, the high cost of the vehicles, high fuel requirements, and high capital investments hinder the growth of the off-road vehicles market.

The technological developments in off-road vehicles, with the emergence of electric drive systems and power train capabilities, are expected to create ample opportunity for market growth. Rising concerns regarding carbon emissions and the increasing popularity of electric-based off-road vehicles are expected to create ample opportunity for the global off-road vehicle market growth.

Segmental Analysis:

Based on vehicle type, the market is segmented into all-terrain vehicles (ATVs), utility task vehicles (UTV), and snowmobiles. Among these, the all-terrain vehicle (ATV) segment held the largest share of the market in 2022. In contrast, the utility task vehicle segment is anticipated to register the highest CAGR in the market during the forecast period. The all-terrain vehicle segment consists of the vehicles used for military, agriculture and outdoor sports events. Rising investments across the military and agriculture development are expected to drive the global off-road traffic market. Also, the utility task vehicles segment is growing at a highest CAGR during the forecast period owing to increasing demand for this vehicle from various country's municipal corporations. The rising growth of low-carbon-emission vehicles is driving the market growth. 

Regional Analysis:

The North American off-road vehicle market is expected to dominate the global off-road vehicle market. This is primarily owing to the rising popularity of outdoor sports activities around the globe. Also, the rising disposable income of the people, with the increasing focus on the popularity of high-end vehicles, is expected to create ample opportunity for market growth. Also, continuos development of the advanced vehicles with electric assistance and new models in the market with advanced technologies drives the market growth. In February 2023, Bombardier Recreational Products (BRP) launched snowmobiles and planned its production in 2024 at its Valcourt plant in the US. The company launched an electric Ski-Doo two-passenger snowmobile.

Asia Pacific is growing with the highest CAGR during the forecast period owing to increasing investments, rising development and the launching of new off-road vehicle models in this region. 

For instance, the companies are launching all-terrain vehicles with advanced technologies in order to meet the consumer’s demand. For instance, in August 2022, Polaris, Inc. launched all new models of RZR Pro R Sports all-terrain vehicle in India. This all-terrain vehicle is used for various off-road applications, including farming and traveling on the off-roads, including in private properties.

Key Player Analysis:

The off-road vehicle market analysis consists of players such as Deere & Company, DRR USA, Electra Meccanica, Harley-Davison, Inc., Yamaha Motor Co., Ltd., Honda Motor Co., Ltd.,   Italika, Kawasaki Heavy Industries, Kymco, and Polaris Inc. are the top two players owing to the diversified product portfolio offered.

Recent Developments: 

The strategies adopted by the key players in the market include partnerships, mergers, acquisitions, collaborations and new off-road vehicles launching in the market. A few recent key market developments are listed below: 

  • In August 2023, BYD Company Ltd. launched an off-road SUVs named BAO 5 under its Fangchengbao brand. The Dual Mode Off-road vehicle with Super Hybrid Platform consists of several features, including Cell to Chassis technologies, balancing between the vehicle’s safety, powerful off-roading, and low energy consumption.
  • In July 2023, Kawasaki Heavy Industries, a Japan-based automotive company, launched the off-road bike model KLX230RS for the Indian market. This off-road vehicle consists of legal road permits and consists of several components, including turn indicators, headlights, rear-view & front view mirrors, and taillights.
  • In June 2023, Lexus GX launched a luxurious quality off-road Sport Utility vehicle globally for premium users in the North American market.  
  • In September 2022, Suzuki Motor USA LLC launched KingQuad's all-terrain vehicles product portfolio. It consists of the front suspension, fully I-beam & A-arm rear suspension.

Off-Road Vehicle Market Report Analysis

Off-Road Vehicle Market

  • CAGR (2023 - 2031)
  • Market Size 2023
    US$ 23.90 Billion
  • Market Size 2031
    US$ 35.04 Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Deere & Company
  • Polaris Industries, Inc.
  • American Honda Motor Co., Inc.
  • Caterpillar
  • Valtra (AGCO)
  • Escort Group
  • Yanmar Co., Ltd
  • Mahindra & Mahindra Ltd.
  • Liebherr Group

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Vehicle Type
  • All-terrain Vehicle
By Utility Task Vehicle
  • UTV
By and Snowmobile)
By By Fuel Type
  • Gasoline
  • Diesel
  • Electric
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Off-Road Vehicle Market Report Scope

Report Attribute Details
Market size in 2023 US$ 23.90 Billion
Market Size by 2031 US$ 35.04 Billion
Global CAGR (2023 - 2031) 4.90%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Vehicle Type
  • All-terrain Vehicle
By Utility Task Vehicle
  • UTV
By and Snowmobile)
    By By Fuel Type
    • Gasoline
    • Diesel
    • Electric
    Regions and Countries Covered North America
    • US
    • Canada
    • Mexico
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
    • China
    • India
    • Japan
    • Australia
    • Rest of Asia-Pacific
    South and Central America
    • Brazil
    • Argentina
    • Rest of South and Central America
    Middle East and Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of Middle East and Africa
    Market leaders and key company profiles
  • Deere & Company
  • Polaris Industries, Inc.
  • American Honda Motor Co., Inc.
  • Caterpillar
  • Valtra (AGCO)
  • Escort Group
  • Yanmar Co., Ltd
  • Mahindra & Mahindra Ltd.
  • Liebherr Group
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Vehicle Type, Fuel Type, Application, and Geography

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    The List of Companies

    1. Deere & Company
    2. Polaris Industries, Inc.
    3. American Honda Motor Co., Inc.
    4. Caterpillar
    5. Valtra (AGCO)
    6. Escort Group
    7. Yanmar Co., Ltd
    8. Mahindra & Mahindra Ltd.
    9. Liebherr Group
    10. CNH Global NV

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

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    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

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    Research Methodology

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    1. Data Analysis:

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    • 3.1 Macro-Economic Factor Analysis:

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    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

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