The All-Terrain Vehicle Market: he growing popularity of outdoor entertainment activities such as off-road sports activities, increasing number of trails and adventure parks, and high demand for all-terrain vehicles for military and agricultural applications are key factors driving the market growth.

The All-Terrain Vehicle Market, by value, is projected to grow to USD 3.17 billion by 2027 from USD 2.5 billion in 2020, at a CAGR of 3.5 % during the forecast period.

All-terrain vehicles also called as quad bikes, or quadricycles are vehicles with large and robust tires with low tire pressure, a wide seat that assists the driver to be seated in a comfortable position and are is fitted with a wide length handlebar allowing easy control and maneuverability to the driver. This automobile is designed to be ridden preferably as a single seater or with a pillion rider. The vehicle is designed to handle a large variety of terrains compared to other automobiles, which is not legal to be ridden on the streets of majority of countries, and thus, requires special permission for driving on the streets.

All-terrain vehicles are generally designed to be ridden by a single operator, though some manufacturers design these vehicles to be ridden by the operator as well as the pillion riding passenger. The vehicle is to be operated more or less like a motorcycle, but the four wheels give it extra stability and control along with the scope to be easily maneuverer in difficult and unpredictable terrains. These vehicles are highly customizable and have an engine capacity ranging from 100CC to as high as 1000CC according to need and application. The all-terrain vehicle since its inception in the 1960s was a three-wheeler till the late 1980s.

Growing inclination towards off-road sports activities across the globe will escalate the all-terrain vehicle market size over the projected timeline. For instance, in January 2020, Desert Series Pro ATV championship in the U.S. attracted trail riding enthusiasts. Increasing sports activities and desert competitions such as GNCC Amateur Competition will further drive the vehicle demand.

Rising number of adventure parks and trails will boost the all-terrain vehicle market growth. For instance, in June 2018, New Brunswick, Canada allocated investment of USD 15.78 million for development of motorized trails for ATV. Further, the U.S. Forest Service launched Travel Management & Off-Highway Vehicle (OHV) Program to increase the awareness regarding the availability of trails. Active government support for developing off-road trails will strengthen the industry share in the next six years.

Increasing disposable income in developed and emerging nations will boost the all-terrain vehicle market demand over the forecast timeline. According to National Bureau of Statistics, China, in 2017, per capita disposable income surged by over 9% as compared to 2016. As per Ministry of Statistics and Program Implementation, India, in 2017, per capita disposable income rose by over 8% as compared to 2016. Moreover, proliferating tourism industry will induce significant growth potential in the industry landscape.

Ongoing investment to improve vehicle performance and enhance consumer experience will boost the all-terrain vehicle market revenue. Industry players are implementing innovative technologies such as Independent Rear Suspension (IRS) to impart superior stability and operation in variable terrains. Adoption of systems to smoothen ride over rough terrains will further expand the industry size over forecast period.

The ATV offers compact size and sharp handling reducing the turning radius and improving the manoeuvring capability in tight spaces. Low centre of gravity offers improved vehicle control and functionality in rough terrain regions. Superior operability in the variable terrains in supporting the vehicle adoption. However, increasing fatalities arising from off-road vehicles may restrict the market growth.

The key players in global all-terrain vehicle market are Honda Motor Company, Ltd. (Japan), Polaris Industries Inc. (U.S.), Yamaha Motor Company Limited (Japan), Bombardier Recreational Products (Canada) and Arctic Cat (U.S.). Kawasaki Heavy Industries Ltd. (Japan), Suzuki Motor Corporation (Japan), CFMOTO Powersports Inc. (U.S.), KTM AG (Austria) and BMW (Germany) are the other main players in this market.

North America is projected to hold the largest all-terrain vehicle market share during the forecast period. Factors such as high demand for ATV, upcoming electric vehicle projects, high disposable income of individuals, and scope for new and advanced technologies, developed economy, and government regulations regarding ATV designs have triggered the demand for all-terrain vehicles in the region. According to industry insights, the US accounts for the largest share of the market owing to high demand in applications such as military, agriculture, sports, entertainment, hunting, forestry, mining, and construction activities. As the demand for ATVs continues to increase, the US is expected to remain the largest market in the region.