Home > Automotive & Transportation > All-Terrain Vehicle (ATV) Market

All-Terrain Vehicle (ATV) Market Size By Product (Youth, Adult), By Displacement (Below 400cc, 400 - 800cc, Above 800cc), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI765
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

All-Terrain Vehicle (ATV) Market size exceeded USD 3 billion in 2020 and is expected to grow at over 7% CAGR between 2021 and 2027. Rising inclination toward off-road sports activities and recreational activities across the globe will drive the ATV industry growth.

High power and torque offered by all-terrain vehicles are supporting the market demand. Rising number of desert competitions, ATV championships, adventure trails, and parks will propel the ATV market size. Furthermore, active government support for developing adventure trails for off-road vehicles is likely to augment the market growth. For instance, the U.S. Forest Service established Travel Management and Off-Highway Vehicle program to raise awareness regarding the availability of trails.

All-Terrain Vehicle (ATV) Market

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Rising investments to improve vehicle performance, such as higher output, torque, and improved maneuverability to enhance customers’ experience, will fuel the industry growth. Technological advancements including electric drive train system to handle a wider variety of terrains and provide superior stability. Additionally, manufacturers are increasingly incorporating models with features including high-end stereos, GPS displays, and plush seating to smoothen ride over challenging terrains.

Increasing number of off-road accidents and fatalities may restrict the all-terrain vehicle market growth. Factors including violation of rules & regulations, ignorance toward precautionary measures such as wearing protective gears while riding, and underage driving can lead to accidents. According to the market data reported by the Australian Competition and Consumer Commission (ACCC), the number of ATV fatalities doubled in 2020 compared to the previous year. In the first two quarters of 2020, 14 deaths including three children associated with all-terrain vehicles were reported compared to eight deaths in 2019.

The ATV market was negatively impacted during the first six months of the COVID-19 pandemic spread. The global lockdown and travel restrictions imposed by government authorities led to a rapid decline in motorsports and recreational activities during the first two quarters of 2020. However, from the third quarter of 2020, the ATV industry witnessed a swift growth in unit shipments of ATVs led by the shift in preference for sports activities among consumers. The market statistics gradually gained momentum with the lifting of lockdown and rising inclination toward outdoor sports & recreational activities.

Increasing spending capacity on off-road activities by adult population will spur the all-terrain vehicle market revenue

North America ATV Market Size, By Product

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The North America adult ATV segment held around 80% share in 2020on account of increasing expenditure on off-trailing activities. According to the report published by the Bureau of Economic Analysis (BEA) in November 2020, the outdoor recreation in the U.S. accounted for 2.1% of the U.S. GDP in 2019, generating USD 788 billion in gross output. Rising ATV adoption for managing livestock, ploughing fields, and other utilitarian activities will support market growth.

Higher demand for 400cc - 800cc in utility operations

The 400cc - 800cc segment in Europe is projected to see growth rate of more than 7% through 2027 due to its high demand in utility and search & rescue operations. Prominent all-terrain vehicle market participants are introducing ATVs with versatile features to meet consumer requirements. For instance, in 2021, Yamaha Motor Corporation launched Grizzly EPS XT-R for utility purpose with 686 cc liquid cooled SOHC 4- stroke engine and 3-way differential locking.

Growing popularity of adventurous activities and increasing outdoor sport activities

Asia Pacific ATV Market Size, By Application

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The Asia Pacific sports application captured about 30% of the all-terrain vehicle market share in 2020. ATVs offer compact size and sharp handling, improving maneuverability in rough terrains. Superior operability and improved vehicle control owing to low center of gravity in different terrains will improve the market demand from sports activities. The growing popularity of ATVs in adventure activities and increasing sports participation among youth population are driving the industry statistics.

Industry players are rebuilding their all-terrain vehicle models with enhanced features, such as improved torque and reduced weight, to improve riders’ comfort. For instance, in February 2021, Yamaha Motor Corporation, announced its lineup of Proven Off-Road 2021 sports ATV models, YFZ450R and Raptor 700R. The new technically advanced vehicles feature 449cc fuel injected engine and titanium five valve cylinder head. 

Presence of numerous forest trails will augment the North America market revenue

The North America all-terrain vehicle market was valued at around USD 2 billion in 2020, with over 300 thousand units of new ATVs sold. Rising preference for recreational activities such as camping and off-roading is set to propel regional market growth. The presence of numerous forests and adventurous trails including Rocky Ridge Ranch, Oak Hill Raceway, River Valley Motocross, and other off-road vehicle parks will enhance the demand. Furthermore, off road vehicle racing events such as ATV super challenge series, ATV mud nationals, and desert championships will accelerate the market size.

High focus of market players on upgrading the product portfolio

Market leaders are emphasizing on launching new models of ATVs with enhanced features to diversify their product portfolio. For instance, in September 2020, Suzuki Motors Corporation, announced the launch of KingQuad ATV models for 2021 lineup. The 2021 KingQuad 750AXi Power Steering SE plus for sports utility is equipped with advanced electric power steering system, independent suspension, and high towing capacity to enable more comfortable operation.

Prominent industry players are emphasizing on mergers and acquisitions to increase their global presence. For instance, in September 2018, Polaris Industries Inc., acquired WSI Industries, a leading vehicle parts manufacturer for USD 24 million. The objective behind the acquisition is to bring the high precision machine capability in-house and support the long-term supply chain strategy. The company is adopting the industry trend of vertical integration of its supply chain.  

Major companies in the all-terrain vehicle market include Bombardier Recreational Products (BRP), Suzuki Motors Corporation, Kawasaki Motors Corporation, HiSun Motors, Yamaha Motor Co. Ltd, Polaris Industries Inc., Taiwan Golden Bee (TGB) Co. Ltd., Honda Motor Co, and Textron Industries.

The ATV market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2021 to 2027 for the following segments:

Market, By Product:

  • Youth
  • Adult

Market, By Displacement

  • Below 400cc
  • 400cc - 800cc
  • Above 800cc

Market, By Application:

  • Utility
  • Sports
  • Recreation
  • Military

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • Thailand
    • Malaysia
    • Indonesia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market share of all-terrain vehicles had attained more than USD 3 billion in 2020 and is poised to rise at CAGR of over 7% up to 2027.

Adult all-terrain vehicles in North America accounted for close to 80% of the revenue share in 2020 and will see expansion with the higher spending on off-trailing activities in the region.

The regional market revenue from the 400cc - 800cc displacement segment is anticipated to hit a growth rate of over 7% through 2027 with increasing demand in utility and search & rescue operations.

Sports application in the Asia Pacific region held more than 30% of the overall ATV market share in 2020 and will grow with the higher need for compact size and enhanced maneuverability in rough terrains.

The ATV market size in North America had reached over USD 2 billion in 2020 and will expand substantially owing to the growing preference for recreational activities in the region.

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Premium Report Details

  • Published Date: Jul 2021
  • Companies covered: 13
  • Tables & Figures: 378
  • Countries covered: 20
  • Pages: 260

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