DUBLIN, Dec. 23, 2021 /PRNewswire/ — The “Off-road Vehicle Market – Growth, Trends, COVID-19 Impact, and Forecast (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The off-road vehicle market was valued at USD 14 billion in 2020, and it is anticipated to reach USD 18 billion by 2026, registering a CAGR of 4.12% during the forecast period (2021-2026).
The outbreak of the COVID-19 pandemic acted as a restraint to the off-road vehicle market in 2020 due to the continuous travel and trade restrictions imposed by governments globally. However, after the pandemic, the market is expected to grow steadily as economic activities resumed worldwide.
The global off-road market is experiencing high demand, owing to the growing popularity of extreme sports and the need for robust compact equipment. Off-road vehicles have a wide range of users across the agriculture, mining, construction, and other sectors.
The companies providing off-road vehicles are focusing on introducing new products with improved features to attract more customers and gain a competitive position in the market.
Moreover, the construction industry is increasingly adopting off-road compact vehicles to boost its efficiency. The rapidly growing industrialization and an increase in mining activities are the major factors expected to drive the growth of the off-road vehicle market.
However, the high cost of maintenance of off-road vehicles is the primary factor that is anticipated to hinder the growth of the off-road vehicles market.
North America is expected to remain the largest market for off-road vehicles, followed by Europe, owing to growing consumer demand in the region. Asia-Pacific is expected to witness the fastest growth in the off-road vehicle market, owing to the high adoption rate and the booming automotive sector, leading to increased production of off-road vehicles, especially in China and India.
Key Market Trends
All-Terrain Vehicle Segment to Witness Significant Growth
The ATV market is growing swiftly, as vehicle manufacturers are developing ATVs for many end-use applications. People’s increasing interest in sports activities and recreational activities has emerged as a significant driving factor for the segment.
Moreover, manufacturers’ interest in frequent advancements in the development of various eco-friendly vehicle versions is likely to boost the market.
ATVs’ market share is projected to witness steady growth, owing to the change in the rules and regulations that govern and define the standards in the way ATVs are used. Regulatory authorities, such as the California-based non-profit organization and the All-terrain Vehicle Safety Institute (ASI), determine proper ATV usage regulations and promote approved products and accessories,= such as seatbelts, footrests, helmets, and kill-switches.
North America to Hold Prominent Share in the Market
North America held the largest market share in the off-road vehicle market during the forecast period (2021 – 2026). Despite the pandemic, in 2020, the North American market (the United States, Canada, and Mexico) had a very successful year in sales, with significant growth seen in all-terrain vehicles.
The rising recreational expenditure and the growing preference of the youth toward adventure and off-road events are likely to boost demand in the market. A wide range of products across varied prices is anticipated to enhance the growth during the forecast period.
In order to reduce the impact of the hindrances, the regulatory authorities, including the Recreational Off-Highway Vehicle Association (ROHVA), the United States Consumer Product Safety Commission (CPSC), and the US Environmental Protection Agency (EPA), established numerous regulations regarding the usage of ATV and occupant safety. Thus, government initiatives and the growing interest of the youth in recreational events are expected to drive the demand in the market during the forecast period.
Companies Mentioned
Polaris Inc.
BRP Inc.
Honda Motor Company
Yamaha Motor Corporation
Arctic Cat Inc.
Kawasaki Motors Corp.
Suzuki Motor Corporation
American LandMaster
Kwang Yang Motor Co. Ltd
Kubota Corporation
For more information about this report visit https://www.researchandmarkets.com/r/oqd88
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SOURCE Research and Markets
