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Off-Road Vehicles Market Size
Off-Road Vehicles Market size surpassed USD 20 billion in 2022 and is slated to grow at over 8% CAGR from 2023 to 2032, driven by the increasing development of electric off-road vehicles in Europe.
With a mountainous and rocky terrain in the region, Europe offers a wide opportunity for regional growth. Countries like the UK, France and Germany have been witnessing a growing uptake of electric off-road vehicles, especially from the millennial population. In early November 2022, the EU banned the sale of new petrol and diesel cars from 2035, to curb CO2 emissions in the continent. Electric alternatives are gaining a strong foothold in Europe as they do not run on fossil fuel, driving industry demand.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 20 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 8% |
| 2032 Value Projection: | USD 45 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 342 |
| Segments covered: | Vehicle, Propulsion Type, and Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Safety concerns around off-roading activity may hinder market expansion
Off-roading, an adventure activity, is a dangerous activity that can result in severe accidents and/or fatalities, with many ORVs providing little protection to riders. This factor can severely restrict the off-road vehicles market growth. Moreover, often these vehicles are marketed for children and do not have many laws regulating their use, leading to a higher probability of accidents and hampering the overall progress.
Off-Road Vehicles Market Analysis
The ATV segment is projected to observe 8% growth between 2023 to 2032, owing to the rising number of all-terrain vehicles clubs along with the proliferation of outdoor parks, fueling demand. In addition, the rising sports competition and involvement of the younger generation in such outdoor activities will result in continuous segment growth. Demand for the product is also slated to rise given the rise in facilities that provide proper driving training and teach passenger safety.
The off-road vehicles market from the electric propulsion type is poised to witness 17% growth rate through 2032. With electric vehicles becoming the new norm as governments around the world work on curbing carbon emissions and pollution, the industry is also endorsing a rise in demand for electric ORVs, given the upsurge in off-roading and related activities. Electric motors also offer instant power and torque to the vehicle, fostering demand especially among U.S. consumers.
The use of off-road vehicles for recreation purposes is estimated to reach USD 16 billion by 2032, on the account of increased spending on leisure and adventure activities. With the Covid-19 pandemic having forced many to stay home alone, participation in recreational activities witnessed a rise as lockdowns and restrictions were eased. This has also opened investment opportunities in the sector, stimulating industry dynamics.
The North America off-road vehicles market revenue was worth 12 billion in 2022. This is on the account of higher participation in recreational activities as compared to other regions, resulting in elevated demand for off-road vehicles. The region is also experiencing growth at a rapid rate with the U.S. having a well-established off-roading industry, along with the launching of technologically advanced vehicles there.
Off-Road Vehicles Market Share
Major players in the highly-competitive off-road vehicles industry are:
- Honda Motors
- Polaris Industries
- Yamaha Motor Corporation
- BRP
- Kawasaki Motors Corporation
To improve their market share, many firms are working towards advancing product design and improving configuration and after-sales services.
COVID-19 Impact
The COVID-19 pandemic saw a negative impact on several industries, especially those which involved outdoor participation, due to lockdowns in order to curb the spread of the highly-contagious virus. The sector also saw a slump in growth and demand as strict lockdowns were imposed worlwide, but with ease in restrictions, pent-up demand of people who stayed indoors saw a surge in outdoor activities. According to American automaker Polaris, the company witnessed a boom in the sale of ORVs, reporting a nearly 40% rise in earnings in the first three months of 2021, adding that there is a growing market of new people wanting to try off-roading activities.
This market research report on Off-road vehicle includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2018 to 2032 for the following segments:
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Market, By Vehicle
- ATV
- UTV/SSV
- Off-road motorcycle
Market, By Application:
- Utility
- Sports
- Recreation
- Military
Market, By Propulsion Type
- Gasoline
- Diesel
- Electric
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Brazil
- Mexico
- MEA
- UAE
- Saudi Arabia
- South Africa
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