North America ATV And UTV Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

North America ATV And UTV Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The North America ATV and UTV market was valued at USD 5.69 billion in 2020 and is expected to reach USD 7.54 billion in 2026 registering a CAGR of about 4.82% during the forecast period (2021 - 2026).

During the outbreak of COVID-19, the market was hit adversely because of the disruptions caused in the supply chain as several major economies of the world were forced into lockdown and economic activities were halted during this period. Yet with the gradual opening up of economies, the demand is expected to return to the market.

As most of the ATVs and UTVs are not permitted to be operatable on highways and other main roads, government authorities across the region have increased the budgetary allocations to build new off-road trails that may be helpful for recreational enthusiasts and boost adventure sports activities in the region. This is expected to drive the market studied.

Earlier, ATVs and UTVs were majorly associated with sports and recreational activities. However, over time, the application of these vehicles has diversified, and they are now being used in the agricultural sector, as well as for patrolling, hunting, gardening, and other activities.

The increasing preference of UTV and ATV by military forces around the world is expected to increase the ATV and UTV market size. United States and Canada expected to lead the market durig forecast period because of government initiatives and subsidies.For instance, the United States Army has shown interest in acquiring ATVs with features such as rapid transportation capabilities and the ability to carry nine fully armed soldiers, agility, and a minimum of 55 mph.

Key Market Trends

Rise In Demand Of ATV and UTV In Military and Recreational Activities

There is an increase in the demand for ATV and UTV for military activities such as transportation of troops, driving on difficult terrain, and others. For instance, there is a rise in demand for new ATV in the U.S. Army as the ATV is capable of transporting troops on battlefield and is able to carry nine fully-armed soldiers.

This requirement of ATV and UTV from military organizations drives the growth of the market. In addition, LATVia received Sportsman Big Boss and MRZR, 2 ATVs and UTVs from U.S. based company Polaris Government & Defense and it is expected that these Polaris vehicles are to be delivered in year 2020 for defense purpose as part of US government program. Thus, rise in demand for ATVs and UTVs from military troops drives the growth of the ATV and UTV market.

ATVs and UTVs are very useful in activities such as hunting, nature exploration, hiking, and other outdoor exploration, but these vehicles are often very risky and dangerous. The number of ATVs and UTVs available on the market is growing. This, in turn, raises the number of ATV and UTV-related incidents increasing. Production of ATVs and UTVs with additional safety measures to avoid injuries and death will give the key players operating on the ATV and UTV market the opportunity to dominate the space.

United States Expected To Lead The Market

In the United States, the ATV segment has always been very relevant, and the country is the home to the top manufacturers, like Polaris, BRC, and Arctic Cat. These three, along with Honda and Yamaha, represent 90% of the global and national sales.

The increasing recreational expenditure and the increasing number of off-roading events are the factors driving the ATV market in the country. The growing preference of the youth toward adventure and off-road events and the availability of a wide range of products across varied price are the factors that further drive the growth of the industry.

The military of the nation uses more ATVs for diversifying their applications, which include transporting armed forces and ammunitions across long distances. The need for vehicles to run in rough terrain provides an impetus to the growth of the all-terrain vehicles market.

However, there are few factors hindering the growth of ATVs in the country. For instance, ATVs have heavy design and robust riding features. The governments urge drivers and passengers to follow the necessary safety measures while riding ATVs.

According to industry insights, the US accounts for the largest share of the all-terrain vehicle market owing to high demand in applications such as military, agriculture, sports, entertainment, hunting, forestry, mining, and construction activities. As the demand for ATVs continues to increase, the US is expected to remain the largest all-terrain vehicle market in the region.

Competitive Landscape

The North America ATV and UTV market is highly consolidated and dominated by few players which includes Polaris Industries Inc., American Honda Motor Co., Inc., BRP Inc., Yamaha Motor Co., Ltd., and among others. The companies are expanding their presence and making acquisitions. For instance, Polaris signed a deal with US government, that by 2020 Polaris will deliver its ATV and UTV to for the defense purpose as part of US government program. This deal is likely to give boost to the company revenue.The manufactures are working towards making ATVs and UTVs eco-friendlier. For instance, DRR USA has introduced an Stealth Electric ATV. This silent all-terrain vehicle that releases no harmful emissions into the atmosphere. Over the next few years, DRR USA intends to expand unit production of the Stealth Electric ATV with even more innovations and improvements in the ATV’s future. Textron Specialized Vehicles Inc. announced the launch of its Hauler 800 ELiTE electric utility vehicle, powered by Samsung SDI lithium technology capitalizing on the proven technology of E-Z-GO ELiTE vehicles as the Hauler 800 ELiTE offers zero-maintenance batteries with increased range and energy efficiency.Reasons to Purchase this report: The market estimate (ME) sheet in Excel format 3 months of analyst supportPlease note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.