The North American ATV and UTV Market size is expected to grow from USD 8.52 billion in the current year to USD 13.6 billion over five years, registering a CAGR of 7.64% during the forecast period.
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. It 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. 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,
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. It is expected to boost the growth potential of the market.
People's growing interest in sports and recreational activities emerged as a major driving factor for the segment. The manufacturers are working toward making frequent advancements in developing various eco-friendly vehicle versions to address the growing carbon emission concerns, further boosting the market size of all-terrain vehicles.
The key companies operating in the market are also taking multiple initiatives to increase access to motorized recreational trails to supplement the penetration and capitalize on the opportunity. For instance,
In Q2 2023, three major projects in Oregon received OAI support. These projects are designed to offer improved riding experiences throughout the Oregon Sand Dunes National Recreation Area, Tillamook State Forest, and the prospect of riding area in the Rogue-Siskiyou National Forest. From informative wayfinding signage to vital bridge and staging area construction, these projects demonstrate OAI's commitment to improving Oregon's recreational opportunities for years.
Increasing off-road terrains, promoting recreational activities by motorsports associations, and rising national rally championships are anticipated to unfold enormous opportunities for ATVs and UTVs in the United States over the coming decade. It is presumed to hold a subsequent impact on ATV and UTV demand during the forecast period. For instance,
Such initiatives are likely to shape the demand trajectory over the coming years.
The increasing recreational expenditure and the rising number of off-roading events are driving the growth of the ATV and UTV 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 industry's growth. The military of the nation uses more ATVs and UTVs for diversifying their applications. It includes 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 and UTV market.
The growing establishment of dedicated All-Terrain Vehicles and Utility Terrain Vehicles pathways within United States parks is expected to stimulate heightened consumer interest. This expansion of recreational ATV and UTV infrastructure serves as a compelling market driver, as it not only addresses the accessibility issues but also encourages greater demand for these off-road vehicles. It presents substantial growth opportunities within the All-Terrain Vehicles and Utility Terrain Vehicles Market in the United States.
Several local bodies in the country are taking initiatives to promote All-Terrain Vehicle and Utility Terrain Vehicles for recreational and sporting purposes.
It is likely to boost the ATV and UTV market in the country, owing to the developments mentioned above in the market,
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. For instance,
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