The Global off-road vehicle market trends analyse
The global Off-road vehicle market
The global Off-road vehicle market was valued at $12,365.18 million in 2020,and is projected to reach $22,618.45 million by 2030, registering a CAGR of 7.3%. North America was the highest revenue contributor,accounting for $6,308.71 million in 2020, and is estimated to reach $10,969.95 million by 2030,with a CAGR of 6.8%.
Off-road vehicle refers to mobility solution type designed to operate on public roads as well as rough terrain. Off-road vehicle have a characteristics including open treads,large tries with deep,and a flexible suspension. Majority of the off-road vehicles are equipped with four wheel drive system (4WD) or all-wheel drive (AWD) to attain the operational requirements. Moreover, Off-road vehicles have a wide range of applications in area of good carriers, agricultural applications, and passenger commute. In recent years, electric driven off-road vehicles are gaining momentum, owing to its fuel-efficient operations along with effective noise reduction level. Use of off-road vehicles are regulated by stringent government rules and regulations for improved safety.
Factors, such as growth in trend of recreational activities and adventure supports and increase in penetration of AWD and 4WD vehicles are expected to drive growth of the off-road vehicle market. However, high maintenance cost of off-road vehicles and ban on ATV UTV driving in wildlife area due to terrain damage restrain the market growth. On the contrary, development of electric powered off-road vehicles and expansion of dealer network for the effective product reach are projected to offer lucrative growth opportunities for the market players.
The global off-road vehicle market is segmented on the basis of displacement, vehicle type, end user vertical, and region. On the basis of displacement, the market is divided into less than 400 (CC),400-800(CC), and more than 800 (CC). on the basis of the vehicle type, it is categorized into ATV, UTV, snowmobile, and NEV. By end use vertical, it is fragmented into agriculture, military, sports, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Increase in trend of recreational activities and adventure sports
In recent years, sports enthusiasts and tourists are inclining toward trails of off-road vehicles such as UTV and ATV along with related activities for recreational and sport activities purposes. Several leisure activity organizers and tourism councils are introducing UTV ATV related activities by building tracks and sport setups for these vehicles to attract and retain visitors. Moreover, several countries are organizing yearly championships, which are gaining popularity at remarkable rate as anyone capable of driving ATV can participate in the race. Therefore, increase in trend of such adventure sports attracts tourists and propels demand demand for ATV and UTV vehicles, which, in turn, support the off-road vehicle market growth.
Increase in penetration of the AWD and 4WD vehicles
End consumer of off-road vehicles are demanding more output efficient and optimum performance high-end driving operations, owing to operational conditions as these vehicles are meat to operate on uneven terrain. Moreover, majority of off-road vehicle manufacturers are developing these drive system to cater to changing requirements of end users. Furthermore, demand outlook of end users have shifted more toward added comfort, and driving dynamics.
Changing requirements of the end consumers is gaining traction for four-wheel drive and all drive wheel drive off-road vehicles to effectively operate on the uneven terrain. In recent years,adoption of AWD and 4WD utility vehicles penetration have increased drastically and is expected to maintain the momentum in upcoming years, which is anticipated to support for off-road vehicles in the upcoming years.
Development of electric powered off-road vehicles
In recent years, all mobility solutions have witnessed drastic changes, in terms of technological evolution. Hence, to cater to changing demand of consumers such as cost-effective and operational proficient transportation along with fuel-efficient mobility requirements, market players are relying on electrical components, owing to their output efficiency and lightweight, thus manufacturing electric driven off-road vehicle solution. Moreover, emission from vehicles is crucial factor as harmful greenhouse gases are released, which increase environmental and health concerns. Thus, government across the globe are implementing vehicle emission norms to control greenhouse emission and maintain environmental balance. Manufacturers need to comply with these regulations to control the emission level. All the factors collectively escalate demand for electric driven off-road vehicles. Hence, to cope up with changing mobility solutions, market participants need to develop electric driven solutions.
Summary
The global off-road vehicle market is expected to witness significant growth, owing to adoption of off-road vehicles in various applications such as agricultural and military and increase in trend of leisure and recreational activities. Adventure sports are gaining traction from past few years for which off-road vehicle racing is becoming popular event in majority of countries across the globe. In addition, NEV is a compact commute solution mainly used in leisure and short distance commute. It is expected to hold a leading market share in the global off-road vehicle market.
The global off-road vehicle market is fairly consolidated market in which countable market participants are operating in the global market. Market participants are focused to develop their sales footprints by expanding dealer network and introduce new product lines of off-road vehicles to cope up with changing requirement of end users. Numerous developments have been carries out by top companies. Such as BRP inc. Deere & company Honda motor co.,ltd, Kawasaki Heavy Industries ltd, Kubota corporation,Polaris Inc, Textron Inc, And Yamaha Motor Co.,Ltd which supplements growth of global off-road vehicle market. Impact of COVID-19 significantly affected the global off-road vehicle market in 2020. furthermore, the market witnessed negative growth or significant downfall in 2020.and is expected to witness a recovery in 2022.
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