North America ATV and UTV Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

North America ATV and UTV Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Currently, The North American ATV and UTV market was valued at USD 5.96 billion in the base year. It is expected to reach USD 7.90 billion, registering a CAGR of about 4.80% over the next five years.

During the COVID-19 pandemic, the market was hit adversely because of the disruptions caused in the supply chain, as several major economies of the world were forced into lockdown. Economic activities were also halted during this period. However, as economies are reopened, the demand for ATVs and Utvs is expected to increase in the coming years.

Over the long term, the growing trend of adventure sports and recreational activities and an increase in demand for ATVs and UTVs in military activities are expected to drive the growth of the market. Further, as most ATVs and UTVs are not permitted to be operatable on highways and other main roads, government authorities across the region increased the budgetary allocations to build new off-road trails that may be helpful for recreational enthusiasts and boost adventure sports activities in the region. Such factors are likely to support the growth of the market in the next five years.

Earlier, ATVs and UTVs were majorly associated with sports and recreational activities. However, over time, the application of these vehicles diversified, and they are now being used in the agricultural sector and for patrolling, hunting, gardening, and other activities.

The United States is expected to lead the market, followed by Canada and Mexico, in the coming years due to government initiatives, new laws regarding ATVs and UTVs, and subsidies. For instance,

• In November 2022, the Burlington City Council unanimously approved the final reading of an ordinance allowing the use of golf carts, ATVs, and UTVs within city limits. The US Army showed interest in acquiring ATVs with features such as rapid transportation capabilities, the ability to carry nine fully armed soldiers, agility, and a minimum of 55 mph.

The demand for ATVs is growing rapidly in the region, as new testing guidelines and stringent regulatory overviews may lead to the incorporation of more safety features in new off-road vehicles. This is boosting the growth potential of the market.

There is an increase in the demand for ATVs and UTVs for military activities, such as transporting troops and driving on difficult terrain. There is a rise in the demand for new ATVs in the US Army, as the ATV can transport troops on the battlefield and carry nine fully-armed soldiers. This requirement for ATVs and UTVs from military organizations drives the growth of the market. For instance,

• In May 2022, Polaris announced a special initiative called 'Polaris Heros Advantage,' through which the company provides an accessories coupon of USD 250 to active military members, reservists, veterans, emergency first responders, and medical professionals on a purchase of a full-size ATV. Thus, the rise in the demand for ATVs and UTVs from military troops drives the growth of the ATV and UTV market.

ATVs and UTVs are beneficial in activities such as hunting, nature exploration, hiking, and other outdoor exploration, but these vehicles are often hazardous. The number of ATVs and UTVs available on the market is growing. This raises the number of ATV and UTV-related incidents are also increasing. The production of ATVs and UTVs, with additional safety measures to avoid injuries and death, would give the key players operating in the ATV and UTV market the opportunity to dominate the market.

In the US market, the ATV segment is very relevant, and the country is home to top manufacturers like Polaris, BRC, and Arctic Cat. These three, along with Honda and Yamaha, represent 90% of the total sales.

The increasing recreational expenditure and the increasing number of off-roading events drive the growth of the ATV market in the country. The growing preference of the youth toward adventure and off-road events and the availability of a wide range of products across varied prices are the factors that drive the growth of the industry. The military of the nation uses more ATVs for diversifying their applications, which include transporting armed forces and ammunition across long distances. The need for vehicles to run in rough terrain provides an impetus to the growth of the ATV market. However, a few factors hinder the growth of ATVs in the country.

Government initiatives, the growing interest of the youth in recreational events and developments, and strategic partnerships by the companies are the factors expected to drive the growth of the ATV market in the country in the coming years. For instance,

• In January 2021, Nivel Parts & Manufacturing Co LLC acquired High Lifter Product Inc., a base ATV/UTV accessories manufacturer. The purchase is Nivel’s fifth UTV acquisition, along with Side By Side Stuff, Octane Ridge, Seizmik, and APE Offroad.
• In September 2022, Suzuki Motor USA LLC (Suzuki) launched its highly respected KingQuad ATV product line and its near-legendary line of youth products. The SMAC facility is one key factor in the continued success of Suzuki’s global ATV business. Suzuki KingQuad ATVs built in the SMAC facility are shipped to U.S. Suzuki dealers and nearly 30 countries worldwide.

Based on the above-mentioned factors and developments, the United States is anticipated to register optimistic growth in the coming years.

The North American ATV and UTV market is highly consolidated and dominated by a few players, including Polaris Industries Inc., American Honda Motor Co. Inc., BRP Inc., Arctic Cat, and Yamaha Motor Co. Ltd. Most companies are expanding their presence by backward integration. Market leaders emphasize launching new models of ATVs and UTVs with enhanced features to diversify their product portfolio.

• In January 2022, Madison, Indiana-based SuperATV company acquired Assault Industries, a performance UTV accessories company based in California, to widen its dealer network and customer reach through Assault Industries' product line.
• In December 2021, Polaris launched RANGER XP Kinetic UTV, a three-seater electric UTV with Zero Motorcycle 110 HP motor. The UTV was manufactured under the partnership of Zero Motorcycles and Polaris.

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