19-Nov-2022 | Zion Market Research
The global all terrain vehicles market size was worth around USD 3.1 billion in 2021 and is predicted to grow to around USD 5.2 billion by 2028 with a compound annual growth rate (CAGR) of roughly 6.1% between 2022 and 2028.
All terrain vehicles (ATVs) are defined as off-road motorized vehicles designed specifically to travel on non-pneumatic or low-pressure tires. It is made with a seat designed to be mounted by an operator with the control of the steering wheel with the help of a handlebar. ATVs are divided into two main categories. Type 1 are ATVs designed for one person without any space for a passenger. While Type 2 is the variant that is manufactured that can seat an operator and a passenger.
Both are provided with designated seating arrangements in the vehicle. Like other motor vehicles that are designed irrespective of age, ATVs are developed differently and every rider must choose as per the standards. For instance, manufacturers create variants depending on the age where youth models can be handled by small hands and feet while they move at a relatively lower speed and can be controlled easily with minimum effort. Royal Enfield, was the pioneer in developing 4-wheeled commercial quad bikes which were sold in 1893.
Since then the vehicular design has been adopted by various companies and it has also undergone different modifications. Due to the growing rage surrounding ATVs, multiple players in the market have ventured into the sports sector and created ATVs for sporting events. ATV racing events are conducted across the globe at regular intervals and models are built especially for such events influenced by the performance and utility requirements.
The global all terrain vehicles market is projected to grow at a high CAGR due to the growing adoption of ATVs in the agricultural sector. As the world is expanding and with technology marking its presence in almost all sectors, the agriculture industry has become heavily reliant on modern-day systems that can help farmers reap the maximum benefit from cultivating the land. However, to be used in this segment, ATVs have to be registered for the purpose since it provides the owner with some benefits.
Not all countries are as accepting as others in terms of the use of ATVs on agricultural land and country law has to be followed. For instance in Germany, for an ATV to be qualified as safe to be used for agriculture it has to be equipped with a rear fog light, additional hazard flashers, a reverse gear, a coupled trailer that includes an electric kit, and a minimum of 2 headlights.
The global market may also witness high consumer conversion due to the increasing use of ATVs for recreational purposes. Many tourist places have tie-ups with sellers of ATVs and they have become attraction points since the vehicles are not allowed for personal use in many countries. These tourist places that provide an experience with ATVs attract more people.
However, the global market cap may be affected by the fuel inefficiency showcased by all terrain vehicles. Many agencies working toward environmental protection have raised concerns over the harmful impact of all terrain vehicles on the ecosystem since quad bikes have a high emission rate. Other factors like safety concerns and terrain damage may also inhibit global market growth in the coming years.
The positive response to electric ATVs may provide growth opportunities while high cost and trade barriers are expected to restrict market expansion.
The global all terrain vehicles market is segmented based on seating capacity, application, fuel type, number of wheels, and region.
Based on application, the global market divisions are agriculture, sports, military defense, entertainment, and others. In 2021, the entertainment sector dominated with more than 39% of the global market share followed by the sports segment. The growth was due to increasing investments in developing world-glass sports-related ATVs.
The global market may witness surging growth in the military sector because of increasing investments across economies in strengthening regional military power. In 2021, the Indian government spent more than 76 billion on defense.
Based on fuel type, the global market is divided into diesel and gasoline. The global market witnessed the highest revenue in the diesel segment owing to the relatively better fuel efficiency showcased by diesel-variants as compared to gasoline.
Diesel-powered all terrain vehicles have a high runny capacity and since they are less expensive to maintain, they are preferred. However, they do not contribute to sustainable growth and hence various market players are now launching electric ATVs that could witness more acceptance in the global market.
North America leads the global all terrain vehicles market due to the advanced infrastructure of the US and Canada allowing the agricultural sector to spend heavily on technologies as compared to the developing economies. Other factors like growing approval from regulatory bodies, and the availability of the product could encourage regional growth.
Asia-Pacific could be driven by the growing foothold of players from Japan in the automobile sector. It is the world’s third-largest producer of automobiles.
The global all terrain vehicles market is home to players like Hisun, Suzuki Motor Corporation, Bombardier Recreational Products, Polaris, Yamaha Motor Corporation, and Arctic Cat Inc., amongst others.
This review is based on a report by Zion Market Research, titled “All Terrain Vehicles Market By Seating Capacity (Two-Seater, and One-Seater), By Application (Agriculture, Sports, Military & Defense, Entertainment, and Others), By Fuel-Type (Diesel, and Gasoline), By Number of Wheels (3-Wheeled, 4-Wheeled, and More than 4-Wheeled), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028.”- Report at https://www.zionmarketresearch.com/report/all-terrain-vehicle-market
The global all terrain vehicles market is segmented as follows:
By Seating Capacity
By Number of Wheels
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