The global all-terrain vehicle market was valued at USD 4.54 billion in 2022, and it is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. The main factors driving this growth include the increasing popularity of outdoor sports like off-road events, the growing number of adventure and trail parks, and the rising demand for ATVs in both agricultural and military applications. Additionally, the increase in disposable income and purchasing power among individuals in both developed and developing economies is expected to further boost the demand for all-terrain vehicles throughout the forecast period.
However, the ATV market experienced negative growth in the first half of 2020 due to the outbreak of COVID-19. Global lockdowns and restrictions led to the temporary closure of several manufacturing and assembly units. Despite this, the rising global demand for recreational activities is likely to support the market's recovery and future growth. An ATV, also known as a light utility vehicle, is an off-road motorized vehicle equipped with four wheels, low-pressure or non-pneumatic tires, and a handlebar for steering. ATVs are classified into two types: type I, designed for a single rider with no passengers, and type II, which includes seating for both a rider and a passenger. Type II ATVs feature a designated seating position behind the rider.
ATVs are recognized for their exceptional maneuverability in off-road and rough terrain environments. Their design ensures better protection in harsh conditions compared to conventional vehicles, making them ideal for use in sectors like forestry, sports, military, agriculture, and defense. Over recent years, ATVs have gained popularity for their effectiveness in remote areas, providing a convenient method for transporting supplies and equipment. While they are typically used in off-road settings, some regions have begun allowing them on public roads.
Gather more insights about the market drivers, restrains and growth of the All-terrain Vehicle Market
Application Segmentation Insights:
In 2022, the recreational segment accounted for the largest share of market revenue, holding 65.0%. This can be attributed to the rising demand for ATVs for recreational purposes, driven by the increasing popularity of hiking and camping activities. Government initiatives promoting ATV usage, including grants for individuals engaged in rough terrain and off-road activities, are also expected to boost market growth during the forecast period.
The military and defense segment is anticipated to experience the fastest growth, with a CAGR of 6.2% over the forecast period. ATVs provide essential maneuverability and mobility for strategic military missions. Original Equipment Manufacturers (OEMs) that have tactical contracts with military organizations are developing ATVs for military applications, including off-road transport, utility, electric ATVs, and combat vehicles. For instance, Polaris offers a range of ATV models, such as the Sportsman MV850, DAGOR A1, and Mrzr D4, specifically designed for military use.
Order a free sample PDF of the All-terrain Vehicle Market Intelligence Study, published by Grand View Research.
