All-terrain Vehicle market to Eyewitness Huge Marginal Growth by 2030
Posted by Mrudula Anil Karmarkar on July 26th, 2022
The global all-terrain vehicle market size is expected to reach USD 1.92 billion by 2030, registering a CAGR of 5.2% during the forecast period, as per a new report by Grand View Research, Inc. The development of off-road terrains, trails, and recreational parks is projected to boost the demand for All-terrain Vehicles (ATVs) by 2030. Moreover, governments’ initiatives to enhance tourism and recreational activities have supported the sales of ATVs. For instance, the Travel Management & Off-Highway Vehicle (OHV) Program announced by the U.S. Forest Service aims to increase the awareness and popularity of trails in North America.
Factors such as the growing popularity of off-road racing events and increased advertising have fueled the demand for ATVs across the globe. For instance, in January 2022, the Desert Series Pro ATV tournament involved ATV enthusiasts and many off-road vehicles which contributed to the adoption of ATVs. Additionally, growth in investments from sponsors is anticipated to boost the growth of the market by 2030.
Over the past few years, economic growth in developing economies, such as India and China, has resulted in higher disposable incomes and purchasing power of individuals, creating more spending capacity. This, in turn, supports the travel and tourism industry. As per the data published by the World Travel and Tourism Council (WTTC), the global tourism sector grew by 3.9% in 2018. The development of the tourism sector has led to a significant increase in recreational activities, thereby driving the demand for ATVs.
North America dominated the ATV market in 2021. This can be attributed to the presence of vast and diverse landscapes in North America, including mountain ranges and dense forests. ATV manufacturers focus on developing innovative and safer equipment that can meet the diverse needs of end users who want to explore tough terrains. Additionally, the increasing production and sales of ATVs in North America are expected to contribute to the growth of the market. The presence of various market players, including Polaris Inc., Textron Inc., and BRP, among others, is likely to further contribute to the growth
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The rising popularity of outdoor sports activities, including off-road events, the increasing number of adventure and trails parks, and the rising demand for 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.
All-terrain Vehicle Market Report Highlights
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. Lower automotive sales are expected to further hamper the ATV market in the coming quarters, thereby hampering the market growth. 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.
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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 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.
Prominent players that dominated the all-terrain vehicle market in 2021 include Polaris Inc.; Bombardier Recreational Products (BRP); American Honda Motor Co., Inc.; Arctic Cat Inc. (acquired by Textron Inc.), and Yamaha Motor Corporation. These players focus on new product launches, geographic expansions, strategic partnerships, and mergers & acquisitions to improve their product offerings, enhance their market presence, and gain a competitive edge. These initiatives also assist in creating awareness regarding driver safety among end-users and assist the companies in expanding their product portfolio and brand value. For instance, In August 2020, Polaris Inc. announced the launch of new ATVs, Sportsman 570 and Sportsman 450 H.O. The launch helped the company to improve its product portfolio and cater to consumer demands. Some of the prominent players operating in the global all-terrain vehicle market are:
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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