NORTH AMERICA REPORT
Market Overview. The global UTV/ATV market size was US$ 8.66 billion in 2021, with a compound annual growth rate (CAGR) of 6.13%. PSR forecasts the global market to grow to US$ 11.67 billion by 2026
The North American UTV/ATV market was valued at US$ 6.66 billion in 2021, and it is expected to reach US$ 8.50 billion in 2026, registering a CAGR of about 5.00% during the forecast period (2022 – 2026).
Applications. UTVs/ATVs were originally associated with sports and recreational activities. Application of these vehicles has diversified, and they are now being used in the agricultural sector and for patrolling, hunting, gardening, and other activities.
A recent application is the United States Army. The military has shown interest in acquiring UTVs/ATVs with features such as rapid transportation, the ability to carry nine fully armed soldiers, agility, and a minimum of 55 mph.
Demand Drivers. There are many demand drivers; some of the more important ones are:
- With the gradual opening of economies, the demand is expected to return to normal.
- The robust design, versatile features, and side-by-side seating.
- The enhanced storage space to carry equipment and supplies.
- The growing trend of adventure sports and recreational activities, especially the youth.
- Government authorities increasing the budgetary allocations to build new off-road trails.
- Increase in the demand for UTV/ATV in military activities.
- Additional safety measures to avoid injuries and death.
- The number of UTVs/ATVs available on the market is growing
- The increasing recreational expenditure and the increasing number of off-roading events.
Major players in the UTV/ATV markets are expanding current products to gain market share. They are also enhancing the current products with improvements such as quality air suspension and multi drive mode functions.
The global UTV/ATV market is also witnessing customization trends in vehicles, led by increasing consumer demand. Newly introduced advanced vehicle capabilities such as hydrostatic transmissions and disc brakes have also raised consumer interest.
Industry Challenges. Key factors challenging the market include:
- High labor and infrastructure costs
- Increasing tariffs and import taxes affect overall vehicle costs
- Increased prices for gasoline and electric UTVs/ATVs
- High maintenance costs of UTVs/ATVs
- Bans on UTV/ATV in wildlife areas to prevent terrain damage
Increased accidents of powerful machines often are caused by driver failure. UTVs/ATVs are very useful in activities such as hunting, nature exploration, hiking, and other outdoor recreation, but these vehicles are often very risky and dangerous. The number of ATVs and UTVs available on the market is growing. This raises the number of UTV/ATV related incidents.
Regional Markets. North America is the home to manufacturers, like Polaris, BRP, and Arctic Cat. These three, along with Honda and Yamaha, represent 90% of the total sales. owing to the high demand in applications, such as military, agriculture, sports, entertainment, hunting, forestry, mining, and construction activities.
This category is extremely diverse, and SEMA market research has identified three distinct vehicle types:
- Sport models are more commonly found in the Western United States. Owners of those vehicles tend toward social pursuits, often riding with passengers and in groups.
- Multipurpose vehicles, which comprise the largest segment of UTV sales, with the highest volume residing in the South. Owners seek ultimate versatility with their vehicles and their modifications.
- Utility models, whose sales are strongest in the South and Midwest. Owners perceive and use their UTVs as workhorses, focusing on practicality and durability. They are the least likely to upgrade their vehicles and are the most solitary, frequently driving their UTVs alone.
Players are focusing on new product launches, geographic expansions, strategic partnerships, and mergers & acquisitions to improve their product offerings, enhance their market presence, and gain a competitive edge. These initiatives also assist in creating awareness regarding driver safety among end-users and assist the companies in expanding their product portfolio and brand value. PSR
Michael Aistrup is Senior Analyst at Power Systems Research
