All-Terrain Vehicle (ATV) Market Size By Product (Youth, Adult), By Displacement (Below 400cc, 400 - 800cc, Above 800cc), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Mar

All-Terrain Vehicle (ATV) Market Size By Product (Youth, Adult), By Displacement (Below 400cc, 400 - 800cc, Above 800cc), By Application (Utility, Sports, Recreation, Military), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2030

The global all-terrain vehicle (ATV) market is all set to gain significant impetus and account for a sizeable valuation through 2030, owing to the flourishing outlook of the travel and tourism industry. According to the recent estimations by United Nations World Tourism Organization, the tourism sector recorded a growth of about 4% in 2021 compared to 2021. On the other hand, regions such as Europe and the Americas witnessed a rise of 19% and 17%, respectively, in 2021 than 2020.

These trends, coupled with the increasing inclination toward recreational activities driven by the increasing per capita incomes and surging expenditure on leisure sports, may streamline the ATV industry expansion in the foreseeable future.

In addition, the rollouts of several government initiatives creating awareness about sports and the increasing percentage of the youth participating in off-road and ATV events and tournaments may foster product adoption over the analysis timeframe.

In terms of products, the adult ATV segment is projected to account for noticeable valuation through 2030 due to the consistent improvement in vehicle technology driven by emerging investments and efforts by leading automotive manufacturers. The availability of advanced products with improved functionalities at preferred price points may boost the demand for adult ATVs in the forthcoming years. In addition, robust economic growth and increasing family incomes may foster product adoption, thus strengthening the ATV industry outlook.

Based on displacement, ATVs with above 800cc displacement engines may gain significant traction over the analysis period due to their exceptional power and torque capabilities. The increasing popularity of these vehicles among sports enthusiasts riding across extreme terrains may bolster product demand owing to their capability to shift gears at high speeds. Besides, the rising R&D investments toward developing products with added functionalities at affordable prices may bring about lucrative gains to the all-terrain vehicle market.

With respect to applications, ATVs may find major applications across the military sector. The segment is anticipated to grow at about 3% CAGR and record an appreciable valuation through 2030.

The ruggedness and ability of all-terrain vehicles to run through tough terrains and their flexibility to adjust between 2 to 4 seats make them ideal for defense and military applications. The rapid growth in military expenditure and defense budget allocations to employ advanced and extra mobility to get to the combat zone or to perform reconnaissance patrols may increase product sales in the years to come.

Regionally, the Europe all-terrain vehicle (ATV) market held almost 22% of the market share in 2021 and is likely to emerge as a major regional shareholder through the projection period. The industry expansion is backed by increasing product demand across the military and defense sector and a rapid upsurge in off-roading and recreational sports activities.

The optimistic outlook of the economic landscape and significant growth in disposable personal incomes may fuel the regional growth trends. In addition, the ongoing development of defense-oriented vehicles with improved mobility and payload carrying capacity for strategic combat missions is expected to push the industry revenue through 2030.