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Industry Insights, Market Size, CAGR, High-Level Analysis: All-terrain Vehicle Market The global all-terrain vehicle market size was valued at USD 3.9 billion in 2018 and is anticipated to expand at a CAGR of 3.1% from 2019 to 2025. The growing popularity of outdoor entertainment activities such as off-road sports activities, increasing number of trails and adventure parks, and high demand for all-terrain vehicles for military and agricultural applications are key factors driving the market growth. Increasing purchasing power and disposable income in developed as well as emerging economies are expected to drive the demand for all-terrain vehicles over the forecast period. An all-terrain vehicle (ATV) is a motorized off-road vehicle that is designed for commuting on four wheels with non-pneumatic or low-pressure tires with a handlebar for steering control. All-terrain vehicles are primarily subdivided into two categories: the type I category includes all-terrain vehicles intended for use by a single rider with no passenger and type II ATVs are designed for use by a rider along with the passenger. Type II ATVs are equipped with a designated seating position behind the rider. All-terrain vehicles are best known for their maneuverability in rough terrain and off-road capabilities. The sturdy vehicle design allows better protection from harsh operating environments as compared to conventional vehicles. All-terrain vehicles have applications in sports, forestry, surveying, agriculture, and military and defense. ATVs have gained popularity over the past few years as they enable access to remote areas and rough terrains and offer a convenient way to carry equipment and supplies. All-terrain vehicles are mainly used in off-road environments; however, in recent years, several regions have permitted the use of these vehicles on public roads as well. The demand for all-terrain vehicles has increased in the agricultural sector for various farm-related applications such as weed control, field plowing, fence mending, animal handling, and general transportation. All-terrain vehicles are versatile and are also used in applications such as construction, manufacturing, utilities, search and rescue, and mining. Prominent companies are providing sponsorships and organizing off-road racing events and adventure sports events to gain higher product visibility and acquire new customers. Demand for gasoline ATVs is increasing owing to higher demand in military and sports applications. Heavy-duty all-terrain vehicles are primarily equipped with diesel engines, as they are used for powerful towing and material handling applications. Electric all-terrain vehicles are gaining popularity in North America and Europe as an alternative for ATVs operating on gasoline and diesel. Environmental concerns and fluctuating prices of diesel and gasoline are the factors that are expected to drive the demand for electric vehicles globally. The introduction of more powerful electric motors provides a performance advantage to electric ATVs to compete with gasoline and diesel variants. The former have a quiet engine and are hence considered suitable for activities such as hunting and wildlife rescue. Engine Type Insights of All-terrain Vehicle Market On the basis of engine type, the ATV market has been segmented into engines below 400 cc, between 400-800 cc, and above 800 cc. The 400-800 cc segment dominated the market in 2018 with a market share of over 48.0%. Increase in demand for all-terrain vehicles with a 400-800 cc engine is attributed to their demand for utility purposes. For instance, all-terrain vehicles are built with a significant amount of storage space and are commonly used to haul equipment and supplies. Furthermore, government organizations are adopting these vehicles for search and rescue operations as well as for monitoring forests and wild areas. Prominent players in the market are introducing ATVs in the 400-800cc category to cater to a wider range of audience and explore new application areas. For instance, Suzuki Motor of America, Inc. announced the launch of new Quad 750 XP and 500 XP in the 400-800cc category with increased towing capacity to cater to consumer demand. ATVs with a capacity above 800cc is projected to register a significant growth in the all-terrain vehicle market with a CAGR of 5.0% over the forecast period. An increase in off-trailing activities and events is expected to drive the demand for ATVs with an engine capacity above 800cc. Off-trailing activities and events require vehicles with higher engine displacement capacities to deliver abilities such as torque which would enable the participants to gain competitive advantage. The launch of improved ATVs would enable competitive rough terrain and desert race events, thereby driving the demand for ATVs with a capacity of 800cc and above. For instance, in October 2018, Polaris announced the launch of Sportsman 850 SP and Sportsman XP 1000 ATVs. These two all-terrain vehicles provide higher ground clearance and more significant suspension travel. Application Type Insights of All-terrain Vehicle Market On the basis of application type, the market has been segmented into agriculture, sports, recreational, and military and defense. The recreational segment dominated the market in 2018 with a share of above 66.0%. The demand for all-terrain vehicles for recreational purposes has been growing owing to rising number of camping and hiking activities. Additionally, government initiatives to promote ATVs through availability of grants for individuals involved in off-road and rough terrain activities and encouraging safety measures is expected to boost the market growth over the forecast period. For instance, in 2017, the Oregon Parks & Recreation Department introduced an ATV grant program that helps pay for law enforcement, emergency medical services, land acquisition, and operation and maintenance. The military and defense application is expected witness a substantial growth rate in the market over the forecast period. ATVs provide greater mobility and maneuvering for tactical missions. Original equipment manufacturers (OEMs) involved in strategic contracts with military organizations offer off-road combat, utility, transport, and electric ATVs for military applications. For instance, Polaris provides ATV models such as Mrzr D4, DAGOR A1, and Sportsman MV850 for military applications. Regional Insights of All-terrain Vehicle Market North America is the most prominent market, accounting for a share of more than 58.0% in 2018. U.S. and Canada are the leading countries where the adoption of ATVs has increased substantially owing to factors such as developed economy, higher disposable income of the residents, forthcoming electric vehicle projects, and government regulations regarding ATVs. The region has several off-road terrain parks and trails such as River Valley Motocross, Rocky Ridge Ranch, and Northwest Off-Highway Vehicle Park. Such off-road terrain parks and trails have become tourist attractions, which has positively impacted the economic growth of the local communities. The Europe market is expected to register a CAGR of 3.9% from 2019 to 2025. The region is expected to witness increased demand for ATVs over the forecast period owing to rising demand for off-road vehicles in agricultural as well as military and defense applications. The development of standardized safety requirements and test methods, coupled with revised regulations pertaining to emissions from non-road mobile machinery is expected to boost the market demand. Asia Pacific provides sustainable growth opportunities to all-terrain vehicle manufacturers owing to the large addressable market, rising military expenditure, and availability of low-cost manufacturing. Market Share Insights of All-terrain Vehicle Market The market is highly competitive and concentrated, with the top five companies accounting for the maximum share of the global revenue in 2018. Polaris Inc.; American Honda Motor Co., Inc.; Bombardier Recreational Products (BRP); Yamaha Motor Corporation; and Arctic Cat Inc. (acquired by Textron Inc.) dominate the market. New product developments, improvements in existing product line, and mergers and acquisitions are some of the strategies adopted by key players to maintain their market share. For instance, in March 2017, Textron Inc. announced the acquisition of Arctic Cat Inc. as a short-form merger. Arctic Cat Inc. operates as an indirect wholly-owned subsidiary of Textron Inc. In August 2019, Polaris Inc. announced the opening of the first multi-brand distribution center in Fernley, Nevada. The new distribution center is a 475,000 square-foot facility and will support the company’s aftermarket, parts, and accessories businesses. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of All-terrain Vehicle Market Research Report This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global all-terrain vehicle market report on the basis of engine type, application type, and region: Engine Type Outlook (Revenue, USD Million, 2019 - 2030) Below 400cc 400cc-800cc Above 800cc Application Type Outlook (Revenue, USD Million, 2019 - 2030) Agriculture Sports Recreational Military and Defense
Table of Contents Chapter 1 Methodology and Scope 1.1 Market segmentation & scope 1.2. Market definition 1.3. Information procurement 1.3.1 Purchased database 1.3.2. GVR’s internal database 1.3.3. Secondary sources & third party perspectives 1.3.4. Primary research 1.4. Information analysis 1.5. Market formulation & data visualization 1.6. Data validation & publishing Chapter 2 Executive Summary | read more...