The "Global Off Road Vehicle Market: Analysis By Vehicle Type, By Displacement, By End User, By Region Size, Trends and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global off road vehicle market was valued at US$16.49 billion in 2022. The market value is expected to reach US$24.79 billion by 2028. The market value is expected to grow at a CAGR of 7.03% during the forecast period of 2023-2028.
The off-road vehicle market has been consistently growing, mostly as a result of rising consumer demand as more people became interested in adventure sports like camping, off-roading, trekking, etc., and off-road vehicles provide an thrilling way to enjoy the great outdoors. Additionally, the market has grown dramatically over the past few years, as a result of rapid urbanization, increasing demand for cost-efficient and convenient motorcycles, and increasing number of off-roading enthusiasts.
Market Segmentation Analysis:
- By Vehicle Type: The report provides the segmentation of off road vehicle based on the vehicle type: Side-by-Side, ATVs, Snowmobiles, and Others. During the forecast period, the side by side vehicle segment is expected to grow at the fastest CAGR.
- By Displacement: The off road vehicle market is further bifurcated based on the displacement: Less than 400 (cc), 400 to 800 (cc), and more than 800 (cc). Less than 400 (cc) dominated the market in 2022.
- By End User: The report provides the bifurcation of the market into four segments based on the end user: Sports, Agriculture, Military, and Others. The sports segment held the maximum share in 2022.
- By Region: The report provides insight into the off road vehicle market based on the geographical operations, namely North America, Europe, Asia Pacific, and ROW. North America dominated the market in 2022.
- The Asia-Pacific off road vehicle market is anticipated to grow at the highest rate over the projected period, as a result of the rapidly expanding economies and rising consumer purchasing power. The growth of off road vehicle market in Asia Pacific is mainly driven by increased demand for power sports recreational activities, and growing number of sports events.
- Growth Drivers: One of the most important factors impacting the global off road vehicle market is the increasing adoption of off-road vehicles in military and agriculture operations. Off-road trucks are used in military operations to move supplies such as cargo, gasoline, and ammunition. These trucks are also used to convey heavily laden weaponry during wartime. Off-road utility vehicles are employed in agricultural activities including irrigation, rock-picking, crop planning, and scouting. These machines carry out farm labour effectively, reducing the manpower expenses involved. The use of cutting-edge technology on these trucks, such GPS for drawing field borders and marking field lines, helps to save time during planting by reducing soil compaction. Furthermore, the market has been growing over the past few years, due to factors such as rapid urbanization, rising disposable income, increasing off-roading sports events, rising investment in R&D and new product development, increasing outdoor adventure park and government initiatives and growth in the powersports industry.
- Challenges: The market has been confronted with some challenges specifically, high cost of off-road vehicles, environmental impact of off-roading activities, safety concerns related to off-road vehicles, etc. Off-road vehicles are designed to tackle tough terrain and withstand harsh conditions, as a result, they typically have higher maintenance costs than regular passenger vehicles. High maintenance cost act as a barrier for off-road vehicle market growth because of the higher initial cost of vehicle along with the high maintenance costs is likely to have a substitutions effect. The high maintenance cost also makes vehicles less affordable for consumers, and it creates negative perceptions of the brand. This lead to reduced customer loyalty, negative word-of-mouth, and slower market growth.
- Trends: The market is projected to grow at a fast pace during the forecasted period, due to various latest trends such as rise in penetration of AWD and 4WD vehicles, the expansion of dealer networks and increasing trend of electric UTVs and ATVs. The rise in penetration of all-wheel drive (AWD) and four-wheel drive (4WD) vehicles is a trend that has been driving the off-road vehicle market in recent years. AWD and 4WD vehicles are designed to provide better traction and control in off-road conditions, making them ideal for outdoor recreation and exploration. AWD and 4WD systems distribute power to all four wheels of a vehicle, rather than just two, which provides better grip on slippery or uneven terrain. This makes AWD and 4WD vehicles particularly well-suited for off-road driving, as they can handle mud, sand, snow, and other challenging conditions with greater ease and safety.
The market for off-road vehicles is extremely concentrated, with the top 5 companies occupying around 90% of the market share for ATVs and side-by-sides vehicles. The dominant share in worldwide side-by-side unit sales belongs to Polaris. Furthermore, approximately 90% of Polaris' 2022 Off Road sales were derived from North America, which suggests that the company has an even greater market share in that region.
The key players in the global off road vehicle market are:
- Deere & Company
- Kubota Corporation
- Honda Motor
- Mahindra & Mahindra
- Yamaha Motor
- Bombardier Recreational Products
- Textron Inc. (Arctic Cat Inc.)
- Kawasaki Heavy Industries
- CF MOTO Powersports
Key Topics Covered:
Global Market Analysis
- Vehicle Type Analysis
- Displacement Analysis
- End User Analysis
Regional Market Analysis
Impact of COVID-19
- Rapid Urbanization
- Rising Disposable Income
- Growing Adoption of Off-road Vehicles in Military and Agriculture Operations
- Increasing off-roading Sports Events
- Rising Investment in R&D and New Product Development
- Increasing Outdoor Adventure Park and Government Initiatives
- Growth in the Powersports Industry
- High Costs of Off-Road Vehicles
- Environmental Impact of Off-Roading Activities
- Safety Concerns Related to Off-road Vehicles
- Rise in Penetration of AWD and 4WD Vehicles
- The Expansion of Dealer Networks
- Increasing Trend of Electric UTVs and ATVs
- Global Side-by-Side Off Road Vehicle Players by Market Share
- Global ATVs Off Road Vehicle Players by Market Share
For more information about this report visit https://www.researchandmarkets.com/r/w6akqm
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