Dec 21, 2021/IndustryNewsGlobal/ The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the All-Terrain Vehicles Market.
It was estimated prior to this unanticipated outbreak that the All-Terrain Vehicles Market likely to grow at a healthy CAGR of 4.8% over the next five years to reach a value of US$ 6.0 billion in 2027. ATVs were introduced to the North American market in 1971 by Honda Motors. Other Japanese major motorcycle manufacturers (Yamaha, Kawasaki, and Suzuki) entered the North American ATV market in the late 1970s and early 1980s. The growth in the ATV market attracted North American companies like Polaris Industries, Arctic Cat, and BRP Inc., which entered the ATV market in 1985, 1995, and 1998 respectively. In addition to major global players, there are a number of other Chinese and Taiwanese manufacturers who produce low combustion chamber engine-based ATVs for the local market. ATVs are well-known for their mobility and off-road capabilities. They're used in several applications such as agriculture, surveying and patrolling, law enforcement, sports, forestry, among others. These vehicles are typically used off-road; however, a few regions allow them to be driven on public routes.
Side by Side is another off-road vehicle type and offers many advantages over ATVs, such as a better riding experience, rollover protection bars, and ease of mobility. Over the last ten years, the Off-road industry has noticed a continuous shift from ATVs to Side-by-Side vehicles.
Unlike other vehicles, such as cars and commercial vehicles that recorded a tremendous decline amid the pandemic, ATVs emerged as a rising star and recorded magnetic growth amid the pandemic, mainly driven by an extraordinary boost in the North American market. Overall, the ATV market registered over 20% growth in the year 2020 in terms of the number of vehicles sold.
Based on the vehicle type, the market is classified as utility, recreational, sports, and youth. Utility is estimated to remain the most preferred vehicle type in the market over the next five years. All of the major players have a large product offering targeting the utility segment. The sports vehicle type is expected to witness the highest growth throughout the forecast period. This is majorly due to the increased applications of ATVs in sports and recreational activities.
Based on the application type, the market is segmented as sports, entertainment, agriculture, military, hunting, and others. More than 50% of the ATV sales come from sports and entertainment applications. These applications are expected to remain the largest types in the next five years as well, owing to an increase in the demand for ATVs for sports applications such as racing in hilly, desert, and ice regions. In addition, the increasing number of adventure enthusiasts around the world also influences the growth of this segment.
In terms of regions, North America is expected to remain the largest market for all-terrain vehicles during the forecast period, owing to the high demand for powersport vehicles including ATVs in the military, agricultural, sports, entertainment, hunting, forestry, mining, and construction activities. The Year 2020 proved to be invigorating for the ATV manufacturers, particularly for North America. The demand for ATVs soared extremely high, reaching new heights. Asia-Pacific is a relatively small market but is likely to exhibit excellent growth opportunities in the years to come. Markets, such as Australia, China, and India, generate a sizeable demand for ATVs as well as other powersport vehicles.
Key players operating in the global All-Terrain Vehicles market are-
Features of the Report
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools.
The All-Terrain Vehicles analysis report discusses the following heads in great detail:
Market structure: Overview, industry life cycle analysis, supply chain analysis
COVID-19 Impact Assessment
Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
Market trend and forecast analysis
Market segment trend and forecast
Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
Attractive market segments and associated growth opportunities
Strategic growth opportunities for the existing and new players
Key success factors