Electric Off-Road Vehicles Market Size By Vehicle (All Terrain Vehicle [ATV], SSV/UTV, Off-Road Motorcycles), By Application (Utility, Sports, Recreation, Military) & Forecast, 2023 - 2032

Electric Off-Road Vehicles Market Size By Vehicle (All Terrain Vehicle [ATV], SSV/UTV, Off-Road Motorcycles), By Application (Utility, Sports, Recreation, Military) & Forecast, 2023 - 2032

Electric Off-Road Vehicle Market is anticipated to grow considerably through 2032, owing to the increasing investments made by OEMs in new product development. Off-roading calls for torque and reliable acceleration, and EVs offer immense torque and linear power delivery, making them an ideal tool for any trail job. In most cases, all four-wheel-drive systems in EVs are smarter and thus are more capable than mechanical, gas-driven setups.

Besides, market participants operating in the electric off-road vehicle industry are integrating different strategies, such as M&As and business expansions, to maintain their position in the global marketplace. For instance, in 2022, Mullen Automotive acquired a 100% stake in Bollinger Motors to enhance their positions in the rapidly expanding electric sport utility and commercial vehicles markets.

The electric off-road vehicle industry is segmented in terms of vehicle, application, and region.

Based on vehicle, the side-by-side vehicle/utility terrain vehicle (UTV) segment was valued at over USD 30 million in 2022. Increasing demand for Utility Terrain Vehicles (UTVs) owing to their ability to efficiently transport goods over a short distance and effective operations in harsh environments will spur its demand in the future. Besides, the low operating costs associated with electric UTVs, and several measures taken by the regulatory bodies to ensure safe & responsible use of these vehicles will further drive vehicle adoption in the coming years.

By application, the utility segment will showcase considerable growth through 2032. The segmental growth will be fueled by the rising traction of electric off-road vehicles in agricultural applications such as transporting supplies, plowing fields, and harrowing fields. In addition, agriculture and transportation industries are among the leading contributors of greenhouse gases, owing to which various federal governments are introducing strict regulations for reducing emissions from these industries, prompting manufacturers to introduce technologically advanced off-road electric vehicles.

Regionally, the Asia Pacific electric off-road vehicle market is anticipated to garner noticeable gains during the estimated timeframe. Consumer participation in outdoor leisure activities, such as off-road riding in Japan, has increased with rising disposable income, stimulating demand for off-road vehicles. Besides, off-road trails and recreational parks are becoming more popular, and the presence of well-established market players such as Polaris, Zero Motorcycle, and KTM will also positively influence the regional market outlook.