The global off-road vehicles market was valued at $15.3 billion in 2021 and it is expected to reach $22.9 billion at a CAGR of 3.6% between 2022 and 2032. Several government organizations have put strict emission standards for off-road vehicles into effect, including the U.S. Environmental Protection Agency, China VI, and India BS-VI restrictions for greenhouse gas emissions. As a result, market growth has been fueled by equipment makers concentrating on alternative engine options such as full and hybrid off-highway electric vehicles.
The expansion of the worldwide off-road vehicle market is driven by the rise in popularity of adventure sports and recreational activities as well as the penetration of AWD and 4WD cars. Off-road vehicles' high maintenance costs, however, limit market expansion. Some governments, especially those of emerging economies, are investing heavily in initiatives for industrial development while also placing a greater emphasis on the creation of smart cities. As a result, there is a greater demand for off-road vehicles to aid in construction activities, which is driving the market. The substantial use of modern off-highway equipment in oil and gas exploration activities is another important factor spurring expansion.
Source: SAI Research
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The increased usage of cutting-edge technologies in the creation of hybrid off-road vehicles is another factor driving the market. To make it simpler to remove overburden from tunneling or shaft excavation in hydropower projects, special-purpose off-highway vehicles were developed. These vehicles are currently experiencing substantial market growth. In addition, some major firms have introduced mobile versions that offer precise real-time data on the complete operation of the apparatus for intelligent analysis. Additionally, AB Volvo, for example, provides a variety of electric compact machinery, such as the L25 electric compact wheel loader and the ECR25 electric compact excavator.
By charting the lines, modern technology such as GPS on these vehicles reduce soil compaction and speeds up planting by defining field borders and marking field lines. Many technological developments have recently occurred, which have boosted the market for off-road high-performance vehicles. Off-road vehicles require extremely durable suspension systems. To handle rough terrain without going flat, some ATVs use tyres without air. Another innovation that makes use of some of the same electric gadgets as downhill descent control is trail crawl control. It is a lot more difficult.
ATV manufacturing firms and organizations are creating ATV-specific experience zones to promote the use of off-road ATV vehicles all over the world. The artificially constructed tracks, numerous undulations, slush pits, inclines, and obstacles found in these ATV experience zones help to create an exhilarating route for ATV users to enjoy the excitement of riding an ATV. Major manufacturers of motorsport vehicles are also hosting events to raise awareness of experience zones.
Based on vehicle type, the hybrid electric vehicle segment accounted for the highest share of this market. The internal combustion engine will be used more frequently in conjunction with the electric drivetrain in a hybrid electric car. These vehicles combine an internal combustion engine with an electric powertrain to improve the utilization of the internal combustion engine. The demand for hybrid-propulsion off-highway equipment is rising, which is encouraging manufacturers to create more environmentally friendly off-road vehicles. This is due to the strict emission rules enforced by government organizations like the European Commission and the U.S. EPA.
In terms of end-user type, the construction segment held most of the market share and is also projected to drive the market over the forecast period. The section features electric loaders and excavators, among other pieces of construction machinery. One of the key elements fueling the segment's growth is the rising amount of money that governments around the world are investing in the construction of public infrastructure. Additionally, several sizable mining firms have begun to tackle the problem of electrification and diesel displacement. The usage of diesel-powered off-highway vehicles raises the cost of operation since a sizable quantity of exhaust ventilation infrastructure is required to maintain a safe working environment.
Geographically, the North American market witnessed the highest growth over the past few years and is also expected to hold its dominant position during the forecast period. The expansion can be attributable to the existence of important businesses in North America such as Deere & Company, CNH Industrial N.V., and Caterpillar. Additionally, the expansion of the local construction sector is boosting demand for off-highway electric machinery. Companies have introduced electric versions of their off-highway vehicles to the market in the United States as a result of rising GHG emissions. The expansion of the regional market will be aided by high disposable income and supportive government policies that encourage the use of ATVs and UTVs through grants and subsidies. Furthermore, for those who enjoy driving off-road vehicles, Oregon is a perfect and alluring location due to the existence of deserts, dunes, single-track trails, and woodland trails.
According to the study, key players such as BRP Inc (Canada), Caterpillar (U.S), Honda (Japan), John Deree (U.S), KUBOTA (Japan), Kawasaki (Japan), Massimo Motor (U.S), Mahindra (India), Polaris (U.S), PIERER (Austria), Suzuki (Japan), Textron (U.S), Tomcar (U.S), Wildcat (U.S), Yamaha (Japan), among others are leading the global off-road vehicles market.
|Market Size in 2021||US$ 15.3 Billion|
|Market Volume Projection by 2032||US$ 22.9 Billion|
|Forecast Period 2022 to 2032 CAGR||3.6%|
|Historical Data||2019 and 2022|
|Forecast Period||2023 to 2032|
By Classification: Utility Terrain Vehicles (UTVs), All-Terrain Vehicle (ATV), Dirt Bike, Dune Buggies, Rock Crawlers & Sand Rails
By Vehicle: Battery Operated, Hybrid & Others
By Application: Agriculture, Construction, Mining, Sport Events, Military & Others
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||BRP Inc (Canada), Caterpillar (U.S), Honda (Japan), John Deree (U.S), KUBOTA (Japan), Kawasaki (Japan), Massimo Motor (U.S), Mahindra (India), Polaris (U.S), PIERER (Austria), Suzuki (Japan), Textron (U.S), Tomcar (U.S), Wildcat (U.S), Yamaha (Japan), among others|
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