Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles, Snowmobiles), By Propulsion Type (Gasoline, Diesel, Electric), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Growth Potential, Regional Outlo

Off-Road Vehicles Market Size By Vehicle (ATV, SSV/UTV, Off-Road Motorcycles, Snowmobiles), By Propulsion Type (Gasoline, Diesel, Electric), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

Off-Road Vehicle Market is projected to expand exponentially through 2032 due to the rising consumer inclination towards off-road recreational activities, especially in Asia Pacific. In addition, the rising popularity of off-road vehicles such as ATVs, UTVs, and off-road motorcycles among the young population is expected to impact the market expansion. The increasing prominence of off-road sports events across rugged terrains will further increase consumer participation in the off-road vehicle market.

The rising number of accidents and fatalities, along with factors such as a violation of rules & regulations, ignorance toward preventive measures, and underage driving are predicted to hamper the market growth in the future. However, the emergence of electric vehicles (EVs) and advancing battery technologies will escalate the market growth by 2032.

Overall, the off-road vehicle market is segmented in terms of vehicle, application, propulsion type, and regions.

Considering the vehicle, the off-road motorcycle segment is expected to grow significantly owing to the increasing number of sport racing events taking place across the U.S., including the UTV World Championship, Rally on the Rocks, and Legacy Racing. Different companies operating in the business space are introducing new line of off-road motorcycles to secure a competitive edge. Citing an instance, KTM North America, in December 2022, introduced its new lineup of ADVENTURE motorcycles.

In terms of application, the utility segment is projected to reach over USD 6.5 billion by 2032. The growth can be credited to the increasing construction spending across the U.S. Off-road vehicles are used at construction sites owing to their capabilities and features such as adequate load-hauling, enhanced stability, hassle-free maintenance, and maximum comfort. Such factors are slated to impact the market landscape over the forecast period considerably.

Based on propulsion type, the diesel segment is expected to depict more than 7% CAGR over 2023-2032. The segment will demonstrate growth owing to the rising demand for diesel off-road vehicles given the several benefits offered by these, such as high torque and power. Diesel off-road vehicles are equipped with powerful, long-lasting engines that can increase the vehicle's power, which is anticipated to augment the segment expansion.

In the regional context, the Asia Pacific Off-Road vehicle market amassed more than 17% market share in 2022 and is expected to demonstrate sturdy growth through 2032. Growing prominence of off-road parks and trails and the presence of leading industry companies such as Suzuki, Yamaha, and Honda are key factors fostering the market expansion in the region.