Jan 03, 2022/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 Off-Road Vehicles Market.
It was estimated prior to this unanticipated outbreak that the Off-Road Vehicles Market is estimated to grow at a healthy CAGR of 7.6% during 2022-2027 to reach a value of US$ 24.0 billion during the forecast period. Off-road vehicles (ORVs) are specifically designed vehicles that are used for driving on off-highway applications such as rugged roads. These vehicles provide higher durability, increased power outputs, and enhanced traction as compared to the other vehicles. ORVs have a wide range of applications including mining, agriculture, construction, among others. There has been a significant demand for such vehicles due to the increasing popularity of extreme sports, across the globe, which is fueling the overall market growth.
The rapidly growing industrialization along with the rising disposable income of the consumers are some of the major factors that influence the ORV market. These vehicles have increasingly been adopted by the construction, mining, and agriculture industries, among others. Therefore, the ORV manufacturers are largely focused on the development of new ORVs with enhanced features in order to attract more clients and acquire a competitive edge in the market.
Unlike other transportation segments, such as automotive and trucks that recorded a humongous decline amid the pandemic, ORVs emerged as the savior and grew tremendously, especially in North America and Europe. Overall, the market grew by 24% in terms of units in the year 2020, a growth rate that the industry never achieved or even reached close to it in the past decade.
Based on the vehicle type, the off-road vehicles market is segmented as all-terrain vehicles and side-by-side vehicles. The side-by-side vehicles category is expected to dominate the market as they provide a number of advantages over the ATVs, including a superior riding experience, rollover protection, and portability. When compared to ATVs, these factors dramatically lower the number of accidents and injuries. Therefore, the ORV market has witnessed a steady movement from ATVs to SSVs over the eons.
Based on the product types, the market is segmented as utility, rec-use, sports, youth, and others. The utility is projected to remain the most dominant product type in the ORVs market during the forecast period. All the major players have an excellent product portfolio for the utility ORVs. The sports segment is likely to witness the highest growth during the same period, driven by increasing tourism and recreational activities across the globe. The USA is the largest buyer of both utility and sports vehicles.
Based on application type, the market is segmented as sports, entertainment, agriculture, military, hunting, and others. Sports and entertainment are projected to remain the growth engines of the global ORVs market over the next five years, driven by increasing demand for SSVs for sports and entertainment applications. More than 50% of the ORV sales come from sports and entertainment applications in 2020.
In terms of regions, North America is expected to remain the largest market for off-road vehicles during the forecast period. In 2021, the region alone accounted for more than 80% of the global ORV sales. Europe, another significant continent, is expected to grow at a significant rate over the next five years. Although Asia-Pacific is a minor market, it is expected to expand the most throughout the projected period, thanks to rising demand for Powersports in various countries such as China, Japan, Australia, and India.
Key players operating in the global Off-Road 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 Off-Road 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