All-terrain Vehicle Market

The all-terrain vehicle market, by value, is projected to grow to USD 3.3 billion by 2030 from USD 2.9 billion in 2024, at a CAGR of 2.3%. The increasing number of outdoor and adventure sports, recreational activities, rental businesses, and race events for ATVs drive the market. Also, these ATVs with higher engine capacity are used in Sports events, military and defence, and the agriculture sector, which needs higher engine power and towing capacity to carry out many tasks and load goods.

The all-terrain vehicle market is primarily dominated by globally established players such as Polaris Inc. (US), Honda Motor Co., Ltd (Japan), BRP (Canada), Yamaha Motor Co., Ltd (Japan), and Textron Inc. (US). These companies consistently develop new products, adopt expansion strategies, and undertake collaborations, partnerships, and mergers and acquisitions to gain traction in this high-growth ATV market across different regions.

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Polaris Inc. (US) is a leading key player in manufacturing ATVs, snowmobiles, motorcycles, and electric vehicles. With a prominent position in the powersports sector, Polaris has emerged as a top player in off-road vehicles, providing a wide selection of products suitable for both recreational and commercial purposes. The company has 1,400 dealers in North America and 1,100 dealers present internationally. The company strongly emphasizes strategic partnerships to strengthen its market presence. For instance, it entered into an exclusive partnership agreement with Zero Motorcycles in September 2021 for 10 years, focusing on developing off-road vehicles and snowmobiles. Moreover, the company started manufacturing in India in March 2023. They have started manufacturing the RZR Pro R model in India, hailed as the industry’s first purpose-built, race-ready UTV (Utility Task Vehicle). Starting a manufacturing unit in India for the RZR Pro R model offers a significant benefit, including cost efficiency, supply chain optimization, and access to the growing Indian market. This strategic move allows the company to produce competitively priced vehicles, tailor products to local preferences, and contribute to regional economic growth, positioning it for sustainable success.

Honda Motor Co., Ltd. (Japan) is a well-known global company that produces various products, including cars, motorcycles, power equipment, and all ATVs. Honda’s ATV business plays a crucial role in its overall operations. The company provides a selection of ATVs that are suitable for both recreational purposes and utility tasks. Honda has started expanding their product range to cater to diverse customer needs and preferences. For instance, in January 2024, Honda introduced new models like the Talon "S" series (e.g., Talon 1000RS and 1000XS), designed for specific off-road applications and have high-speed stability. Also, in August 2023, Honda partnered strategically with TrueTimber (US) to integrate its popular camouflage designs into Honda's recreational and utility vehicles, appealing to outdoor enthusiasts. Moreover, Honda invested USD 380 million in their existing manufacturing facilities to improve production efficiency and meet increasing demand. The transfer of ATV production to Honda North Carolina Manufacturing from South Carolina exemplifies this strategy, enhancing operational efficiency and supporting local economies.

BRP (Canada) designs, manufactures, and sells motorized recreational vehicles and power sports engines. BRP earned five Red Dot Design Awards in January 2024, including recognition for its Can-Am Outlander Pro ATV and Can-Am Maverick R off-road vehicle. The Red Dot Design Award is a prestigious international design competition highlighting excellence in design. Also, BRP partnered with Synchrony, which was a strategic move to offer retail financing options in the US. With this partnership, customers of BRP for snowmobiles, ATVs, side-by-side vehicles, and personal watercraft will be provided with flexible financing options for buying. Also, due to the increase in demand for ATVs in North America, BRP has invested USD 300 million in developing a new manufacturing plant for electric models, which will be launched by the end of 2026. This is expected to increase the demand for electric ATVs in North America, as well as the customer base and revenue from North America.

Yamaha Motor Co., Ltd. (Japan) strongly focuses on strategic partnerships and collaborations. For instance, in February 2022, it formed a strategic alliance with Cycle Trader to assist dealers with a dynamic marketing campaign just in time for the busy buying season. The partnership between Cycle Trader and Yamaha enables dealers to implement a marketing strategy that focuses on enhancing their brand awareness, increasing visibility for their products, and generating cost-effective leads through the marketing solutions provided by Cycle Trader. Moreover, in February 2023, Yamaha shifted its ATV production from Japan to the US to enhance operational efficiency and market responsiveness. By relocating production to its facility in the US, Yamaha aims to capitalize on lower manufacturing and shipping costs, streamline its supply chain, and better cater to the significant US ATV market.

Related Reports:

All-terrain Vehicle Market by Application (Sport, Utility, Agriculture, Military), Drive (2WD, 4WD, AWD), Engine (<400, 400-800, >800cc), Fuel, Number of Wheels (ATV and Side-By-Side), Battery Capacity, Seating Capacity & Region - Global Forecast to 2030

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