The North America ATV and UTV market was valued at USD 5.89 billion in 2019 and is anticipated to register a CAGR of about 4.81% during the forecast period (2020
NEW YORK, March 2, 2020 /PRNewswire/ --
Market Overview
The North America ATV and UTV market was valued at USD 5.89 billion in 2019 and is anticipated to register a CAGR of about 4.81% during the forecast period (2020 - 2025).
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- As most of the All-Terrain Vehicles (ATVs) and Utility Terrain Vehicles (UTVs) are not permitted to be operable on Highways and other main-roads, government authorities across the region have increased the budgetary allocations to build new off-road trails that would be helpful for recreational enthusiasts and boost adventure sports in the region. This is expected to drive the ATV and UTV market.
- ATVs and UTVs were earlier majorly associated with sports and recreational activities, but over time, the application of these vehicles has diversified and now being used in agricultural sectors, patrolling, hunting, gardening and others. Also, manufacturers are now working towards making electric ATV and UTV more regular in the region studied.
- The United States is the largest market in the North American region occupying a significant share of the total market value followed by Canada and Mexico. But since the market is still in the nascent stage in these countries, they are expected to exhibit relatively high growth rate.
Scope of the Report
The North America ATV and UTV market is segmented by vehicle (Sport ATV, and UTV) by application type (Sports, Agricultural, and Other), by fuel (Gasoline Powered, and Electric Powered), and Country (United States, Canada, and Mexico)
Key Market Trends
Stringent Government Regulations Hindering the ATV Demand
The ATVs are popular adventure vehicles in North America (NA), however, some states in the United States and Canada do not allow the usage of them on most public roads, streets or highways. This can be attributed to the fact that there have been numerous ATV related injuries and deaths in just the United States itself. For instance, according to the 'Annual Report of ATV Related Deaths and Injuries 2017' which was released in February 2019, there were an estimated 15,250 ATV related fatalities in the country between 1992 and 2017.
According to the figures, the U.S Department of Transport has designated ATVs as un-qualified motor vehicles on main roads. Their usage in some states is restricted only to towns and the countryside. In many major cities and suburbs, their usage is limited to specific routes where they specifically mention about the permission for operation.
Canada has enforced even stricter penalties against the use of ATVs in order to tackle forest fires. Violators can face a fine of USD 460 or an administrative penalty of up-to USD 10,000 if their vehicles are found without a spark detector. All the aforementioned facts can deter the growth of ATV and UTV market in North America.
Sports Application is likely to Lead the Market
ATVs and UTVs focused solely for sporting activities are built differently with performance as the main criteria. They are generally light in weight to aid acceleration, stiffer suspension settings for better handling and a low center of gravity. Earlier ATVs for sports and racing featured 2-stroke engines as they offered better acceleration, but the present scenario has changed, and the market has more 4-stroke engine offerings.
Now, there are a lot more professional racing championships and series that are being conducted across North America. The Grand National Cross-Country Series, ATV National Motocross Championship, Championship Mud Racing are few such events where different class of ATVs and UTVs are used. Hence to prepare for these kinds of events, racing clubs procure different type of sport vehicles which is expected to drive the market.
The demand for UTVs in agricultural application is likely to witness the highest growth rate, as the UTVs are majorly used in turf, ranches, and farms for towing agricultural products or small implements attached at the rear end.
Competitive Landscape
The North America ATV and UTV market is highly consolidated and dominated by few players which includes Polaris Industries Inc., American Honda Motor Co., Inc., BRP Inc., Yamaha Motor Co., Ltd., and among others.
The companies are expanding their presence and making acquisitions. Polaris is expanding its global presence through targeted acquisitions, non-consolidating investments, alliances, and new joint ventures and partnerships that add value while continuously updating their existing brands and product portfolio. For instance, Polaris signed a deal with US government, that by 2020 Polaris will deliver its ATV and UTV to for the defense purpose as part of US government program. This deal is likely to give boost to the company revenue.
The manufactures are working towards making ATVs and UTVs eco-friendlier. For instance,
- DRR USA has introduced an Stealth Electric ATV. This silent all-terrain vehicle that releases no harmful emissions into the atmosphere. It's comparable to a 600cc utility four-wheeler. Over the next few years, DRR USA intends to expand unit production of the Stealth Electric ATV with even more innovations and improvements in the ATV's future.
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