All-Terrain Vehicle and Side by Side Vehicle Market Size 2031

Report Description

All-Terrain Vehicle (ATV) & Side by Side Vehicle (SSV) Market Outlook 2031

The global all-terrain vehicle (ATV) & side by side vehicle (SSV) market size was valued at USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market growth is attributed to the growing trend of adventure sports.

ATVs and SSVs handle various terrains, including sand, mud, rocks, and hard-packed dirt, making them ideal for off-road activities and adventure sports. Therefore, the rising trend of adventure sports is propelling the market.

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The demand for all-terrain vehicles and side-by-side vehicles is rapidly rising in sports, military, agriculture, and entertainment industries as they offer thrilling experiences of off-road terrain to users. These vehicles have lower maintenance costs than a car or truck as they don't require expensive parts replacements or oil changes like cars, which encourages consumers to adopt them for supplying heavy loads to difficult terrains.

The COVID-19 pandemic hampered the demand for all-terrain vehicles (ATVs) & side by side vehicles (SSV). SSV and ATV manufacturers struggled during the pandemic, due to the shortage of components, such as semiconductor chips, which delayed the production of SSVs and ATVs. Moreover, the abrupt rise in COVID-19 infection encouraged SSV and ATV manufacturers to temporarily shut down their production plants, which impeded the production and demand for all-terrain vehicles (ATVs) & side by side vehicles (SSV). For instance,

• On March 24, 2020, Yamaha Motor Corporation, a Japan-based automotive company, announced to temporarily shut down its assembly plant in Newnan, US. The Newnan plant manufactures and assembles the company’s side-by-side vehicles, ATVs, and WaveRunner for the US market.

Impact of Artificial Intelligence (AI) on All-Terrain Vehicle (ATV) & Side by Side Vehicle (SSV)

The integration of artificial intelligence (AI) in the automotive industry creates an immense opportunity in the market. Manufacturers of ATVs and SSVs are deploying artificial intelligence to improve customer resolutions and achieve high levels of productivity by identifying several patterns. AI in these vehicles provides system failures with high accuracy by monitoring various engine parameters, such as temperature, pressure, and fuel mixture, helping drivers avoid accidents.

All-Terrain Vehicle (ATV) & Side-by-Side Vehicle (SSV) Market Dynamics

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Major drivers

Increasing military spending around the globe is expected to boost the demand for all-terrain vehicles (ATVs) & side by side vehicles (SSVs). Military forces heavily use ATVs and SSVs, as they offer extra mobility, allowing small units to get to a combat area or conduct reconnaissance patrols quickly. Moreover, these vehicles are operated in extreme terrains, increasing their demand for military forces. Thus, rising spending by military forces is propelling the market. For instance,

• According to a report published by STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE on April 24, 2023, global military spending grew by 13% in 2022 and reached USD 2240 billion.

Advancements in the agriculture industry are projected to drive the market. ATVs are used in agriculture for inspecting crops and livestock and repairing irrigation systems and fence lines. These vehicles move dirt on agriculture fields and transport items from fields to the market, which enhances their demand for agricultural activities.

Existing Restraints

High cost associated with ATVs and SSVs is expected to restrict the market. These vehicles are made up of heavy and costly components, as they are designed to be adaptable to different terrains, which makes them expensive. Moreover, these vehicles are unstable and hard to control, due to their bulk design, which often causes rollovers and collisions and encourages people to reduce their adoption.

Emerging Opportunities

Rising investment in R&D activities by major market players to develop and introduce electric side-by-side vehicles (SSVs) for off-road utility with several inbuilt features such as remote vehicle location services and battery status monitoring creates an immense opportunity in the market. For instance,

• On April 4, 2023, Polaris Inc., a US-based automotive manufacturer, announced the launch of RANGER XP Kinetic, a side-by-side vehicle. Ranger XP Kinetic is made for off-road utility and loaded with different features, such as battery status monitoring, remote vehicle location services, enhanced group ride tracking, and more.

Scope of the All-Terrain Vehicle (ATV) & Side-by-Side Vehicle (SSV) Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

All-Terrain Vehicle (ATV) & Side-by-Side Vehicle (SSV) Market Segment Insights

Vehicle Type Segment Analysis

Based on type, the all-terrain vehicles (ATVs) & side by side vehicles (SSV) market is categorized into gasoline engine, diesel engine, electric, and hybrid. The diesel engine segment registered significant growth in 2022, due to its ability to offer high power and torque. ATVs and SSVs are generally made up of diesel engines, as they provide high torque, enabling easy climbing and traversing rough terrain, making them a great choice for off-roaders.

Moreover, diesel engines have low maintenance costs and long engine life, which encourages consumers to adopt ATVs and SSVs with diesel engines. The electric segment is estimated to grow at a robust pace during the forecast period, owing to rising stringent carbon emission norms and increasing fuel prices. Electric ATVs ensure a clean and eco-friendly environment with no sound or air pollution, which makes them an ideal choice for city commutation and farming.

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Displacement Segment Analysis

In terms of displacement, the global market is divided into less than 400 cc, 400 cc to 800 cc, and greater than 800 cc. The greater than 800 cc segment dominated the market in 2022 and is projected to continue its dominance throughout the assessment period, due to the growing trend of adventure sports.

ATVs and SSVs with displacement that is greater than 800 cc are utilized in adventure sports, as they produce high torque, giving participants a competitive advantage. Moreover, the adoption of ATVs and SSVs by military forces drives the demand for ATVs and SSVs with greater than 800 cc.

Application Segment Analysis

Based on application, the all-terrain vehicles (ATVs) & side by side vehicles (SSV) market is segregated into sports, agriculture, entertainment, military, hunting, and others. The sports segment held a large share of the market in 2022, due to increasing government support and investments in emerging nations. ATVs and SSVs are widely used in adventure sports, such as mountain racing, as these vehicles are designed to handle rough terrain.

Moreover, tourism councils around the world are introducing ATV and SSV related sports activities to attract and retain visitors, which is expected to boost the market. The military segment is anticipated to grow at a quick pace in the coming years, owing to the increasing global tension around the world. Military forces and governments in several countries are adopting ATVs and SSVs for various purposes, such as patrolling and deploying small units to various combat areas.

Moreover, automotive companies in the market are planning to develop and introduce ATVs and SSVs for military use, which is estimated to propel the demand for ATVs and SSVs in the military and defense sectors. For instance

• On October 28, 2020, Kia Motors Corporation, a multinational automobile manufacturer, announced the development of a generation of military ATVs.

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Regional Outlook

In terms of region, the all-terrain vehicles (ATVs) & side by side vehicles (SSV) market is categorized into Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. North America accounted for a major share of the market in 2022, due to the advanced automotive industry and the presence of established market players such as Polaris Inc., BRP, Deere & Company, and Arctic Cat Inc in the region.

Moreover, increasing military spending in the region is propelling the demand for all-terrain vehicles (ATVs) & side by side vehicles (SSV). Additionally, governments in the region are introducing bills and ordinances to allow driving ATVs on roads, which is expected to boost the market. For instance,

• On July 25, 2021, the Washington State Legislature passed two bills regarding the use of ATVs on public roads, namely, SHB 1322 and EHB 1251. These bills allow people in the region to drive ATVs on public roads.

The market in Asia Pacific is projected to expand at a high CAGR during the forecast period, owing to the rising trend of adventure sports and increasing disposable income. Moreover, governments in the region are enhancing their military fund, which is estimated to boost the demand for all-terrain vehicles (ATVs) & side by side vehicles (SSVs), as these vehicles are used by military forces to deploy small units to various combat areas safely. For instance,

• According to a report published by the Ministry of Defense of India, the defense sector was allocated 5.94 lakh crore in Budget 2023-24 on February 1, 2023, a jump of 13% over the previous year.

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