All-terrain Vehicle Market Size, Share & Trends Analysis Report By Engine Type (Below 400cc, 400cc - 800cc, Above 800cc), By Application (Agriculture, Sports, Recreation, Military & Defense), By Region, And Segment Forecasts, 2023 - 2030

All-terrain Vehicle Market Size & Trends

 The global all-terrain vehicle market size was valued at USD 4.54 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. The rising popularity of outdoor sports activities, including off-road events, the increasing number of adventure and trail parks, and the rising demand for all-terrain vehicle (ATVs) for agricultural and military applications are the major factors propelling the growth of the market. Furthermore, the growing disposable income and purchasing capacity of individuals in developed and developing economies are anticipated to drive the demand for all-terrain vehicles over the forecast period.

The market for all-terrain vehicles witnessed negative growth during the first half of 2020 owing to the spread of the COVID-19 virus. The global lockdown and restrictions led to the temporary closure of various assembly and manufacturing units. However, the increasing demand for recreational activities across the globe is likely to contribute to market growth.

An all-terrain vehicle is also known as a light utility vehicle. It is a motorized off-road vehicle designed to travel on four wheels with low-pressure or non-pneumatic tires and a handlebar for steering control. ATVs are divided into two categories: type I and type II. The type I category is intended for use by a single rider with no passengers and the type II category is intended for use by a rider and a passenger. Type II ATVs are equipped with a designated seating position behind the rider.

ATVs are best known for their maneuverability in off-road and rough terrain capabilities. The design of the vehicle ensures better protection from harsh operating environments compared to conventional vehicles. They have wide applications in forestry, sports, military, agriculture, and defense. Over the past few years, ATVs have gained popularity owing to their ease of use in remote areas and their ability to offer a convenient way to carry supplies and equipment. These vehicles are often used in off-road surroundings, although in recent years, several regions have allowed them to be driven on public roads as well.

The demand for ATVs has witnessed a rise in the agricultural sector for various farm-related activities, such as weed control, fence mending, field plowing, general transportation, and animal handling. They are also used in applications such as manufacturing, construction, utilities, mining, and search & rescue. Several key companies are organizing adventure sports & off-road racing events and offering sponsorships to acquire new customers and increase product visibility.

The demand for gasoline ATVs has increased significantly owing to their wide uses in sports and military applications. Heavy-duty ATVs are primarily equipped with diesel engines for material handling and powerful towing applications. Electric ATVs are gaining popularity in Europe and North America as an alternative to ATVs operating on diesel and gasoline. Fluctuating prices and environmental concerns about gasoline and diesel are some factors that are projected to drive the demand for electric vehicles across the globe. The introduction of powerful electric motors enables electric all-terrain vehicles to offer a performance advantage over the diesel and gasoline variants.

Application Insights

The recreational segment held the largest revenue share of 65.0% in 2022. The high demand for ATVs for recreational purposes can be attributed to the increasing number of hiking and camping activities. Furthermore, government initiatives to promote ATVs, such as making grants available to individuals engaged in rough terrain and off-road activities, are expected to propel the growth of the market over the forecast period.

The military and defense segment is expected to expand at the fastest CAGR of 6.2% over the forecast period. ATVs offer maneuvering and mobility for strategic missions. Original Equipment Manufacturers (OEMs) involved in tactical contracts with military organizations provide off-road transport, utility, electric ATVs, and combat for military applications. For instance, Polaris offers various ATV models, such as Sportsman MV850, DAGOR A1, and Mrzr D4, for military applications.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 48.5% in 2022. The adoption of ATVs witnessed a considerable increase in the U.S. and Canada owing to various factors, such as the higher disposable income of residents, the developed economy, government regulations regarding ATVs, and upcoming electric vehicle projects. The region has numerous off-road terrain trails and parks such as Northwest Off-Highway Vehicle Park, Rocky Ridge Ranch, and River Valley Motocross as these off-road terrain trails and parks attract many tourists, thereby driving the growth of the market.

Asia Pacific is expected to expand at the fastest CAGR of 5.3% during the forecast period owing to factors such as increasing disposable income, the popularity of adventure tourism and outdoor activities, infrastructure development to support off-roading, the rising popularity of off-roading as a recreational activity, and growing awareness and accessibility of ATVs. These factors have collectively contributed to the expansion of the all-terrain vehicle market in the Asia Pacific region, providing individuals with exciting outdoor recreational options and driving the demand for ATVs.

The MEA market is expected to witness significant growth over the forecast period. The market growth can be attributed to the increasing demand for off-road vehicles in the military & defense and agricultural sectors. The development of consistent test methods and safety requirements, along with revised regulations owing to emissions from non-road mobile machinery, is anticipated to boost the growth of the market. Furthermore, the market in the Asia Pacific region provides significant growth opportunities for ATV manufacturers owing to the low manufacturing cost, increasing military expenditure, and large addressable market.

Engine Type Insights

The 400 - 800cc segment accounted for the largest revenue share of 48.2% in 2022. The growth can be attributed to the growing popularity of these vehicles for utility activities. For instance, ATVs are built with a considerable amount of storage space and are often used for hauling supplies and equipment. Government organizations are adopting these vehicles for search and rescue operations and monitoring wild and forest areas. Prominent players in the market are launching 400cc-800cc ATVs to cater to a broader range of users and discover new application areas.

The above 800cc segment is expected to expand at the fastest CAGR of 5.7% during the forecast period. An increase in off-trailing events and activities is projected to drive the demand for ATVs with above 800cc engine capacity. Off-trailing events and activities require vehicles with advanced engine movement capacities to deliver improved torque performance which enables the participants to gain a competitive advantage. The introduction of improved ATVs would enable competitive desert race events and rough terrain, thereby proliferating the demand for ATVs with engine capacity of 800cc and above.

Key Companies & Market Share Insights

The market is highly competitive, and the players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. For instance, in May 2023, Polaris Inc. unveiled the 2024 XPEDITION XP and ADV models, marking the introduction of a pioneering category referred to as ‘Adventure side-by-sides’. These cutting-edge vehicles combine the off-road capabilities of conventional side-by-sides with the convenience and ample storage capacity commonly found in premium overlanding experiences. With the 2024 XPEDITION XP and ADV models, Polaris Inc. aimed to redefine the adventure vehicle market by offering a unique blend of rugged performance and enhanced comfort for off-road enthusiasts.

Recent Developments

• In March 2023, Polaris Inc. unveiled the RZR Pro R Factory, a specialized UT (Utility Terrain) vehicle specifically designed for competitive racing. This purpose-built vehicle has undergone meticulous engineering to deliver exceptional performance in demanding conditions encountered in open desert racing. With the introduction of the RZR Pro R Factory, Polaris Inc. aimed to provide racers with a high-performance vehicle that is optimized for the challenges and rigors of intense off-road racing competitions.

• In January 2022, John Deere introduced two additions to their utility vehicle lineup: the XUV835R Gator Utility Vehicle and the XUV865R Gator Utility Vehicle. With these new models, John Deere aimed to provide customers an enhanced capabilities and a premium experience, ensuring that their utility vehicle needs are met with the utmost satisfaction.

• In September 2021, Yamaha introduced the Grizzly 90, a specially designed sports model intended for young individuals aged ten and above. This youth-focused vehicle boasts a low-maintenance 90cc engine that incorporates air-cooling and wet-sump lubrication for optimal performance.

• In June 2021, Kawasaki unveiled the BRUTE FORCE 750 4x4i, an off-road vehicle designed for thrilling outdoor adventures. Powered by a fuel-injected 749cc V-twin engine, this vehicle delivers outstanding performance on challenging terrains. It comes equipped with various features such as a front differential lock, selectable drive modes, and continuous variable transmission (CT), all contributing to improved traction and overall performance.

All-terrain Vehicle Market Report Scope

Global All-terrain Vehicle Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global all-terrain vehicle market report based on engine type, application, and region:

• Engine Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Below 400cc

  • 400 - 800cc

  • Above 800cc

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Agriculture

  • Sports

  • Recreational

  • Military and Defense

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE