Pune, India, Oct. 10, 2023 (GLOBE NEWSWIRE) -- According to The Insight Partners, “Off-Road Vehicle Market Size and Forecasts (2020-2030), Global and Regional Share, Trends, and Growth Opportunity Analysis, Report Coverage: 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,” the market size 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. The increased demand for recreational activities and growing requirement for off-road transportation. However, the high cost of manufacturing and high total cost of ownership for the vehicles hindering the market growth.
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The rising adoption of off-road vehicles in the Asia Pacific countries, including China, India, Japan, and several Southeast Asian Countries, is driving the market growth. The rising popularity of all-terrain vehicles with low gearing and maximum load-carrying capacity required for mining, agriculture, and construction applications drives the market growth. According to the Worldwide Construction Industry Outlook Report in 2021, the construction sector is growing at a rapid pace, achieving an annual turnover of around US$ 3 trillion. This is owing to rising government and private investments in the development of infrastructure projects and the increasing popularity of off-road vehicles among enthusiasts. Off-road vehicles are used to travel on the rough surface and unpaved roads. These vehicles are mostly used on construction sites, in the mining sector and among many other sectors.
According to the Mining Industry Association, the revenue generated by the mining industry reached around US$ 711.0 billion in 2022 and is growing at a rapid pace owing to increasing oil & gas exploration activities around the globe. Rising concerns due to complicated suspension systems of normal conventional vehicles have increased the demand for off-road vehicles with advanced suspension systems. Off-road vehicles are efficient and effective vehicles that deliver a comfortable driving experience for the risers. This study showcased comprehensive off-road vehicles with advanced features such as a comfortable driving experience, sustainability and reliability.
Off-Road Vehicle Market Analysis: Competitive Landscape and Key Developments
Deere & Company, DRR USA, Electra Meccanica, Harley-Davison, Inc., Yamaha Motor Co., Ltd., Honda Motor Co., Ltd., Italika, Kawasaki Heavy Industries, Kymco, Moto Avanzada Sa de Cv, and Polaris Inc. are major companies in the global off-road vehicle market. These players are adopting several strategies, including new product launching, mergers & acquisitions, expansion & diversification, and partnerships in order to remain competitive in the market.
In February 2022, BRP Inc. launched investment for expanding its off-road vehicles business Can-Am for launching new models of its powersports off-road vehicles. The company planned investments in new product development for its Off-Road vehicles brand.
In July 2022, Volcon Inc., an electric vehicles manufacturer, launched the Stag fully electric utility task vehicle (UTV). This vehicle offers better operation with less carbon emission and noise capabilities. The company launched this vehicle in various continents, including North America, Europe, Latin America, and Caribbean countries.
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Off-Road Vehicle Market: Segmental Overview
Based on vehicle type, the market is segmented into all-terrain vehicles (ATVs), utility task vehicles (UTV), and snowmobiles. The all-terrain vehicle segment held the largest share of the market in 2022. In contrast, the one-utility task vehicle segment is anticipated to register the highest CAGR in the market during the forecast period. Based on fuel type, the market is segmented into gasoline, diesel, and electric. Among these, diesel off-road vehicles are expected to hold the largest share in 2022. This is primary atributed to the rising adoption of agriculture and military applications. Electric off-road vehicles are growing with the highest CAGR during the forecast period. Based on the application, the global off-road vehicles market is divided into sports, agricultural, recreation, military, and others. The sports vehicles held the largest share of the off-road vehicle market in 2022.
In contrast, the recreation segment is anticipated to register the highest CAGR in the market during the forecast period. This is owing to rising consumer spending towards outdoor recreational activities around the globe. Further, strict rules and regulations owing to safety issues and concerns for manufacturing these vehicles are hindering the off-road vehicle market growth. Government authorities across North American European countries have imposed several restrictions and license requirements for driving these types of vehicles. This factor hinders the overall market growth.
Further, Nordic countries, including Norway, Denmark, Finland, Sweden, and Iceland, have shown significant growth in the overall off-road vehicles market. This is primarily owing to rapid growth in adventurous activities such as sports events, increasing consumer spending on tourism and government support for tourist attractions is driving the market growth. Moreover, the increasing penetration of snowmobiles in European countries, including the UK, France, Italy, Spain, Russia, Italy, and Germany, owing to high pending snow-related activities, is expected to drive market growth.
Rising consumer demand for electric offroad vehicles for transportation and logistics purposes and increasing spending on recreational activities is offering significant opportunity for the off-road vehicles market. Further, the rising demand for all-terrain vehicles performing various agricultural activities and the increasing off-road vehicles popularity among consumers with growing government support government is driving the market growth.
Increased consumer spending Towards Recreational Activities is Expected to Lucrative Opportunities for Off-Road Vehicle Market:
Post-COVID-19 pandemic, the demand for off-road vehicles has increased astoundingly from sports enthusiasts, hobbyists, and tourists. Rising inclination towards the use of off-road vehicles such as all-terrain vehicles and utility task vehicles for sports and recreational activities is driving the market growth. According to the US Bureau Analysis, United States consumers spent more than US$ 646.0 billion on various outdoor recreational activities such as biking, traveling, domestic trips and others. These consumers require off-road vehicles for adventurous activities.
Further, the rising popularity of electric off-road vehicles among consumers owing to rising demand for carbon-efficient green transportation systems across North America and European countries is driving the market growth. These off-road electric vehicles consist of several batteries, including lead acid, zinc-arc, nickel-based, and lithium-ion batteries. These vehicles come under the hybrid as well as electric systems.
Go through further research published by The Insight Partners:
Electric Off-Road Vehicle Market - Global Analysis and Forecast to 2028
Off-Highway Electric Vehicle Market - Global Analysis and Forecast to 2030
Off-Road High-Performance Vehicle Market - Global Analysis and Forecast to 2030
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