Automotive and Transportation

ATV and UTV Market is Expected to Reach USD 19.63 Billion by 2031

Apr 2024

Automotive and Transportation

As per the report published by Kings Research, the global ATV and UTV Market was valued at USD 10.42 billion in 2023 and is projected to reach USD 19.63 billion by 2031, growing at a CAGR of 8.41% from 2024 to 2031.

The ATV and UTV market is witnessing increasing demand for both recreational and utility vehicles, fueled by a growing interest in outdoor activities and the expanding applications of UTVs across diverse industries such as agriculture, construction, and tourism. Furthermore, technological advancements, particularly in electric and hybrid vehicles, have reshaped the market landscape, with consumers increasingly opting for eco-friendly alternatives.

Furthermore, stringent regulatory measures aimed at reducing emissions have played a significant role in supporting market growth, prompting manufacturers to innovate and introduce cleaner, more efficient vehicle models.

Key Insights

  • Based on vehicle type, the utility task vehicle (UTV) segment held the largest market share of 65.78% in 2023
  • Based on fuel type, the gasoline/petrol segment generated the highest revenue of USD 8.37 billion in 2023
  • Based on displacement, the 401 CC to 799 CC segment dominated the market in 2023, registering a revenue of USD 6.80 billion
  • On the basis of region, North America accounted for the largest market share of 60.12% in 2023

UTV Canada Partners with Mountain Sports Distribution as part of KV Capital’s Powersports Platform

January 2024: UTV Canada, a leading distributor of aftermarket accessories and parts for utility task vehicles (UTVs), announced its merger with Mountain Sports Distribution (MSD), a major player in the power sports industry. Facilitated by KV Capital, the strategic collaboration aimed to strengthen UTV Canada's presence in the local market and enhance its product offerings. The merger leveraged MSD's extensive distribution network and product portfolio, providing UTV Canada with greater reach and resources to meet the evolving needs of UTV enthusiasts.

Rising Demand for Off-Road Recreation Fuels ATV and UTV Market Growth

The burgeoning interest in outdoor recreational activities serves as a significant driver propelling the expansion of the market. As consumers increasingly seek avenues for adventure and exploration, the demand for these vehicles continues to soar. Whether for trail riding, hunting, or off-road racing, these vehicles offer enthusiasts the versatility they expect. Moreover, the expansion of recreational parks and trails, coupled with a growing preference for outdoor lifestyles, continues to increase this demand. As a result, manufacturers are capitalizing on this trend by introducing innovative features and models tailored to meet the evolving preferences of adventure seekers, thereby contributing to sustained market growth.

Rising Demand for Electric UTVs Presents Lucrative Market Growth Opportunity

The increasing global focus on sustainability and environmental conservation is presenting a significant growth opportunity for electric UTVs. With growing concerns over carbon emissions and the need for eco-friendly transportation solutions, there is a burgeoning demand for electric UTVs across various industries. These vehicles offer several advantages, including reduced environmental impact, lower operating costs, and quieter operation, which makes them increasingly attractive to both businesses and consumers. Manufacturers have the opportunity to capitalize on this trend by investing in research and development of electric UTVs, enhancing their product offerings, and catering to the evolving needs of the industry.

Asia Pacific to Lead ATV and UTV Market with Highest CAGR of 13.50% Over the Forecast Period

Based on region, the global ATV and UTV market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. Asia Pacific is poised to witness significant growth in the ATV and UTV market, boasting the highest CAGR over the forecast period. Rapid urbanization, increasing disposable income, and a burgeoning interest in outdoor recreational activities are driving the demand for all-terrain and utility vehicles across the region. Additionally, burgeoning industries such as agriculture, construction, and tourism are fueling the need for versatile utility vehicles in various applications. Government initiatives promoting infrastructure development and eco-friendly transportation solutions further contribute to the favorable market conditions in the region.

Major Industry Players Ink Collaborative Deals to Strengthen Market Foothold

The global ATV and UTV market study reveals a fragmented landscape, featuring prominent companies such as Polaris Inc., Honda Motor Co., Ltd., Yamaha Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., BRP, Textron Specialized Vehicles, Kubota Corporation, CFMOTO Powersports, Massimo Motor Sports, Deere & Company, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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