All-Terrain Vehicle Market Trends

Growth Drivers

• Increasing Number of People Participating in Professional Sports – The number of people participating in sports is increasing, which is rising the scope for ATVs sport events. The people participated in different sport events according to their choices, thus increasing the demand for ATVs off roading sports. Therefore, this is anticipated to surge the all-terrain vehicle market growth. As per the survey, the total attendance of professional sporting events in the year 2022, reached more than 75 Million in the United Kingdom.
• Growing Agriculture Sector –The agriculture sector is growing, and there are large number of people that are depended on them for their living. Moreover, there are different terrain where agriculture is done for various crops, and that rises the demand for ATVs. Hence, this factor is expected to surge the market’s growth over the forecast period.  More than 50 percent of the workforce is employed in agriculture and allied sector activities in India, as per the estimates.
• Surging Use in Military Applications –The All-terrain vehicle have the mobility to deploy the army in special locations. They are meant for different weather, and terrain conditions, thus increasing the demand among the army people. Hence, it is predicted to drive the growth of the All-terrain vehicle market by the end of the year 2035. The Ministry of Defense of India has recently requested a proposal for the procurement of 250 units of ATVs under emergency procurement in the year 2022.
• Growing Tourism Industry- The ATVs are able to run on rough surfaces, such as deserts. Thus, the surging number of international visitors in the desert areas is increasing the demand for these vehicles. Hence, it is expected to boost the growth of the market in the upcoming years. According to the recent reports, the average international visitors in Dubai accounted to more than 15 Million, where the country is popular for desert trips.
• Growing Government Rules to Drive ATVs on the Road – According to the reports, the New Off-road Vehicles Act and Regulations came into effect on May 19, 2022 that also state the training requirements for the safety of the passengers. Therefore, the government’s support through their rules is further anticipated to surge the growth of the market in the upcoming years.  
• Rising Investment and Collaborations by Manufacturers in All-Terrain Vehicle– There has been increasing collaboration and investment by the manufacturers in the research and development of off-roading vehicles. Polaris Inc., announced the partnership of 10 years with Zero Motorcycles, for the off-road vehicles, and snowmobiles in the year 2020. The partnership between the companies in order to launch new off-road vehicles including motorcycle with an electric option, is surging the awareness among the people related to the options available.

Challenges

• Increasing Threat to Public Safety- The increasing concern related to the safety of the passengers is one of the major factors that is expected to restrain the growth of the market over the forecast period. The rising speed during off-roading is leading to an increase in the number of accidents. Moreover, these vehicles are not designed to carry a passenger, as it may pose a risk to the life of the person.
• High Initial and Maintenance Costs of All-Terrain Vehicles
• Trade Barriers for the Raw Material