Growing trends of leisure off-roading activities such as racing & sports along with shifting consumer lifestyle as well as rise in their gross income is predicted to boost All Terrain Vehicle (ATV) market size over the coming years. Advanced Infotainment systems installed in all-terrain vehicles provide entertainment and helps in improving driving experience. GPS tracking, Bluetooth connectivity, and mobile tracking systems fitted in all-terrain vehicles makes them more user-friendly. Furthermore, increasing focus towards manufacturing eco-friendly vehicles due to high sound and environmental pollution caused by conventional vehicles are predicted to boost the demand for all terrain vehicles over the coming years. All-terrain vehicles find major application in military & defense sector owing to their lightweight features which helps them to move combat supplies. Furthermore, its distinct features such as stiffer suspension and lower center of gravity makes them easy to handle across racing applications. Hybrid vehicles are expected to positively affect the industry growth over the coming years owing to their fuel-efficient & eco-friendly engines. According to Global Market Insights, Inc.,” All Terrain Vehicle (ATV) industry size worth USD 6 billion in 2015, is projected to reach USD 9 billion by 2024, registering a CAGR of 5% over 2016-2024.”
U.S. All Terrain Vehicle (ATV) Market size, by application, 2013-2024 (USD Million)
All Terrain Vehicle finds application in forestry, sports, agriculture, military & defense, and entertainment sectors. Its application in military & defense sector is expected to grow at a rate of 9% over 2016-2024 owing to growing use of these vehicles in customized services across remote locations for armor transportation. All Terrain Vehicle market share in agriculture sector worth USD 800 million in 2015, is expected to witness highest gains of 5.3% over the coming eight years due to its growing acceptance as a substitute for tractors and heavy farming equipment.
Major all terrain vehicle products include Youth ATV, Sport ATV, Utility ATV, and Sport Utility ATV. Sport ATV market size contributed over 28% of the overall revenue in 2015 and is predicted to grow considerably over the coming eight years. The growth can be credited to rise in GDP & GNI along with growing consumer preference for using these vehicles in sports. Youth ATV market price worth USD 750 million in 2015, is expected to witness a substantial growth over the coming years. Sport Utility ATV market contributed over 25% of the overall revenue in 2015 and is projected to witness a high surge over 2016-2024 due to rising consumer focus towards vehicle use in both sports and utility.
North America ATV market is predicted to witness a significant growth over the period of 2016-2024. The growth in the region can be attributed to rising consumer inclination towards the vehicle use in sports competitions along with growing popularity of youth ATV among the children above 6 years. U.S. ATV market revenue worth USD 2.5 million in 2015, is expected to grow at a rate of 4.5% over the coming eight years.
Asia Pacific ATV market contributed about 12% of the overall revenue in 2015, and is anticipated to witness a noticeable growth over the coming eight years due to its increasing use in tourism, travel, agriculture, and rescue & search operations. China is predicted to be a major revenue contributor for the region over the coming years.
Key industry players include Polaris Industries, John Deere, Taiwan Golden Bee Company, Arctic Cat Company, Suzuki Automobile Company, Can-Am Motor cycles, Cectek, Kawasaki HiSun, Honda, and Yamaha. The industry participants will focus on mergers & acquisitions, rapid technological innovations, and high R& D investments as their major growth strategies. For instance, in 2016, Polaris acquired China-based firm Hammerhead to grow its product lineup and strengthen its market position in China and India.
Written By : Dhananjay Punekar