All-Terrain Vehicle (ATV) Market Size, Share & Industry Analysis, By Engine Size (Less than 400CC, 400-800CC, More than 800CC), By Application Type (Sports, Military & Defense, Others), and Regional Forecasts, 2024-2032

The global all-terrain vehicle (ATV) market size was valued at USD 5.76 billion in 2023 and is expected to grow from USD 6.02 billion in 2024 to USD 9.35 billion by 2032, exhibiting a CAGR of 5.7% during the forecast period.

All-terrain vehicles are four-wheeled motorized vehicles primarily used for both on & off-road activities. These vehicles are categorized into two types as designated by the manufacturer. The manufacturer designs Type I for use by one operator rather than a passenger. Type II vehicles are used by operators and passengers and are equipped with specific seating positions behind the operator. Such vehicles have application in various industries, such as construction, sports, military & defense, mining, and agriculture, due to their robust design and performance.

All-terrain vehicles are known for their rugged terrain and maneuverability in off-road capabilities. The rough vehicle design provides additional protection against harsh operating environments compared to traditional cars — ATVs used in sports, forestry, surveying and agriculture, and military & defense. These motorized vehicles have become increasingly popular in recent years as they provide access to remote areas and rugged terrain and conveniently carry equipment & fixtures. Moreover, such vehicles are primarily used in the off-road sector. However, in recent years, some areas have allowed these vehicles to be used on public roads.

The increasing popularity of outdoor entertainment activities such as off-road sports, the growing number of trails & adventure parks, and the rising demand for all-terrain vehicles for military and agricultural applications are key factors driving the market growth. Increased purchasing power and disposable income in developed and emerging economies are expected to drive demand for such vehicles during the forecast period.

During the initial phases of the pandemic, the ATV market experienced disruptions due to lockdown measures, supply chain interruptions, and decreased consumer spending. Several manufacturing facilities were forced to shut down temporarily, leading to production delays and shortages of ATV models. While the ATV market initially faced challenges due to the COVID-19 pandemic, it also experienced opportunities stemming from increased interest in outdoor recreation and off-road activities.

All-Terrain Vehicle (ATV) Market Trends

Growing Use of Advanced Technology Tool in Industry and Consumers Inclination Toward Off-Road Recreation Activities In Developed Countries To Sets A Positive Trend

One of the primary aspects driving the all-terrain vehicle market growth is a rising customer inclination for off-road recreational activities and adventure sports. Suppliers are now supplying ATVs with GPS tracking and Bluetooth communication technologies, improving the driving experience. Additionally, various technical improvements, such as creating electric quad bikes and installing enhanced steering systems, hydraulic pump connections, joystick controls, and graphic displays in ATVs, are also helping drive the industry forward. A significant expansion in the tourist industry, growing urbanization, and rising consumer expenditure capacity are some variables that have a beneficial influence on the market.

All-Terrain Vehicle Market Growth Factors

Increasing Demand for Recreational Activities and Rising Demand for ATVs in Agriculture and Military & Defense Will Create a Favorable Trend for Market Growth

The demand for ATVs from military organizations is propelling the market. In December 2023, Ukrainian forces were supplied with 20 ATV battle buggies crafted by volunteers. The Operational Command "South" of the Ukrainian Armed Forces received the delivery of 20 light tactical vehicles, known as "battle buggies," entirely fabricated through the efforts of a volunteer movement backed by significant industrial enterprises.

The demand for ATVs has increased for various farm-related activities such as weed removal, field plowing, fence repair, animal handling, and general transportation in the agriculture sector. All-terrain vehicles are used in various industries such as construction, manufacturing, utilities, search and rescue, and mining. Prominent firms provide sponsorships and organize off-road racing and adventure sports events to increase product recognition and win new consumers.

RESTRAINING FACTORS

High Cost, and Growing ATVs Related Accident Hamper the Growth of the Market

Despite the growing market across several regions, the initial cost required to purchase a vehicle is high. This high price of these vehicles may hinder market growth. Furthermore, the growing number of all-terrain vehicle-related accidents is a crucial issue limiting demand for off-road vehicles. The developing countries have mandated/issued particular norm related to ATV. However, violations of laws & regulations have caused driving injuries and fatalities due to lack of awareness. According to the Consumer Federation of America, in 2023, around 291 deaths were occurred due to ATV. Majority of them were drivers. This also incurs a negative impact on the buying behavior of the customers which is resulting in the limitation and decline in sales worldwide.

All-Terrain Vehicle Market Segmentation Analysis

By Application Type Analysis

Sports Segment Dominates the Market as the Adoption of All-Terrain Vehicle is High

Based on application type, the market is segmented into sports, military and defense, and others.

The sports segment dominated the market with a revenue share of more than 47.2% in 2023. The sports segment holds the largest market share due to the rising number of sports events in developed and emerging economies. Governments across the region have raised budgeted allocations to construct new off-road vehicles, benefiting recreational enthusiasts and boosting adventure sports activities in the area.

The military & defense segment is expected to emerge as the fastest-growing market segment during the forecast period. It is due to an increasing preference for UTV and ATV by military forces worldwide. The increased demand for these vehicles in the military sector is primarily due to the better mobility for tactical operations. Furthermore, the remarkable adaptability and navigational functions give vehicle operators precise directions.

The other segment held the second-largest market share in 2023; meanwhile, it is expected to gain momentum and grow at the fastest CAGR of 5.9% over the forecast period. The other segment includes forestry, surveying, agriculture, personal, recreational, and construction. The segment shows lucrative market opportunities during the forecast period owing to the rising demand for ATVs in the agriculture sector for farm-related activities, field plowing, animal handling, weed control, and general transportation. Furthermore, the need for all-terrain vehicles is increasing in different industrial applications, such as mining, construction, manufacturing, and utilities, due to versatile and robust vehicles.

By Engine Size Analysis

400 cc-800 cc Segment Holds the Largest Market Share Due to High Efficiency

Based on engine size, the market is divided into less than 400 cc, 400cc-800 cc, and more than 800 cc.

The 400 cc-800 cc segment holds the largest market share. The 400 cc-800 cc segment accounted for 46.8% in 2023. Vehicles with engine capacity 400-800 CC are designed with a large storage capacity and are frequently used to transport equipment and supplies. Furthermore, government entities utilize these vehicles for search and rescue missions and forest and wildland monitoring. To appeal to a broader audience and explore new application areas, leading market companies are developing ATVs in the 400-800cc category.

The segment with less than 400 cc held the second-largest share in the market in 2023. The demand for less than 400 cc vehicles will decline during the forecast period due to limited application in sectors, such as military& defense, agriculture, and construction. The less than 400 cc segment holds the second largest market share in all-terrain markets due to high usage in sports and youth ATVs.

The above 800 cc segment is projected to register a robust CAGR of 6.9% during the forecast period. Demand for ATVs with engines more than 800cc is expected to rise as off-trailing sports and events become more popular. Off-trailing sports and competitions require vehicles with larger engine displacement capacity to produce torque, giving participants a competitive advantage. The introduction of better ATVs would allow for competitive rough terrain and desert race events, driving the market revenue with a capacity of 800cc and higher.

REGIONAL INSIGHTS

North America Accounted for the Highest Market Share Due to Presence of Leading Suppliers

North America accounted for USD 2.69 billion in 2023 and is projected to reach USD 3.80 billion by 2032, at a CAGR of around 4.1% over the forecast period. North America led the market with a revenue share of over 46.7% in 2023. Some of the leading manufacturers of all-terrain vehicles, such as Polaris, Textron, BRP, and American Honda Motors, among others present in the U.S. and Canada are crucial supporting the development of the market in this region. The U.S. and Canada are the top countries where usage of such vehicles has expanded significantly due to a developed economy, higher disposable income, electric vehicle initiatives, and government laws regulating ATVs. According to market analysis, the U.S. has the most significant share of this market, owing to a strong military, agricultural, sports, entertainment, hunting, forestry, mining, and construction activities. The U.S. is anticipated to remain the region's leading market as demand rises gradually

Europe is anticipated to register a CAGR of 7.0% from 2024 to 2032. The region is likely to see higher demand for ATVs throughout the projection period due to expanding demand for road vehicles in agricultural, military, and defense applications. The market demand is predicted to be boosted by establishing standardized safety requirements and test methodologies and improved rules governing emissions from non-road mobile machinery.

Asia Pacific is anticipated to see a considerable increase in demand for ATV over the projection period. It is due to the large addressable market, increased military spending, and low-cost manufacturing. Major suppliers, such as Suzuki, Honda, Kawasaki, and Yamaha Motor Corporation in the Japan are crucial elements supporting the market growth in this region.

The rest of the world contributes 6.8% due to fewer automotive OEMs, low technology adoption, and less presence of all typed vehicles. However, it is expected to grow at a CAGR of 8.4% from 2024 to 2032.Additionally, the Middle East and Africa will show lucrative opportunities to develop market revenue.

List of Key Companies in All-Terrain Vehicle Market

Development of Efficient, Safe, and Technologically Advanced ATVs Fuels the Market Competitiveness

The all-terrain vehicle market consists of several regional and global players operating worldwide. Major companies in the market are focused on developing efficient, safe, and technologically advanced ATVs to pace with the latest market trends. Among the others, Polaris Inc., Honda Powersport, Yamaha Motors, Artic Cat, and Kawasaki Heavy Industries are considered the Top 5 players in the market.

Polaris is a global leader in the ATV market, offering a wide range of ATV models for recreational, utility, and sports purposes. The company's innovative designs, technological advancements, and strong brand reputation have contributed to its market dominance.

LIST OF KEY COMPANIES PROFILED:

• Polaris Industries. (Medina, Minnesota, U.S.)


• Arctic Cat (Textron) (Providence, Rhode Island, U.S.)


• Honda Powersport (Tokyo, Japan)


• Kawasaki Heavy Industries (Tokyo, Japan)


• Suzuki Motor Corporation (Hamamatsu, Shizuoka, Japan)


• BRP (Valcourt, Quebec, Canada)


• Yamaha Motor Corporation (Iwata, Shizuoka, Japan)


• Cfmoto (Hangzhou, China)


• Hisun (Chongqing, China)


• KYMCO, Inc. (Kaohsiung City, Taiwan)

KEY INDUSTRY DEVELOPMENTS:

• August 2022 - The U.S. Army signed a contract with BAE Systems for the Cold Weather All-Terrain Vehicle over Oshkosh Defense-ST Engineering. BAE Systems' American and Swedish units secure a USD 278 million contract covering production units, spare parts, and contractor logistics support. The U.S. Army planned to purchase around 163 Cold Weather All-Terrain Vehicles.


• December 2022 - Cake, a Swedish electric motorcycle manufacturer, unveiled the Kibb, an electric semi-autonomous all-terrain four-wheeler tailored for regenerative farming. According to the company, it is engineered to perform light agricultural duties autonomously while minimizing disruption to fragile ecosystems.


• April 2023 - Polaris shipped the Ranger XP Kinetic, the company's lithium-ion-powered rechargeable side-by-side, one of the first products from the 10-year partnership between Polaris and Zero Motorcycles. The Ranger XP Kinetic Premium and Ranger XP Kinetic Ultimate were priced at USD 25,000 to USD 30,000.


• July 2023 - Honda North Carolina Manufacturing commenced ATV production. Associates at Honda North Carolina Manufacturing (NCM) in Swepsonville warmly welcomed a new model to the production lineup. It was a first for the longtime power equipment facility as a FourTrax Rancher all-terrain vehicle (ATV) rolled off the assembly line, heralding a new powersports era in North Carolina. Youth-sized model production commenced at NCM in late April, with the production of the TRX90 marking the initial transition to Honda ATV production in North Carolina.


• January 2024 - The Shapiro Administration allocated USD 794,000 for ATV projects, opening the Spring ATV and Snowmobile Round application window. Among the funds allocated, Elk County Riders ATV granted USD 420,600 for Trail of Dreams development in Fox Township. Indian Creek Valley ATV Club received USD 69,000 for a 61-acre acquisition in Saltlick Township. NEP Sno Trails awarded USD 304,200 for a 135-acre acquisition spanning Clifford and Herrick townships, Union Dale Borough, Susquehanna County, and Mt. Pleasant and Preston townships, Wayne County.

REPORT COVERAGE

The global all-terrain vehicle market research report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the Market's growth over recent years.

REPORT SCOPE & SEGMENTATION