Global All-terrain Vehicle Market Size, Forecast and Trend Highlights Over 2025-2037
All-terrain Vehicle Market size was valued at USD 6 Billion in 2024 and is expected to reach USD 12.5 Billion by the end of 2037, registering around 5.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of all-terrain vehicles is evaluated at USD 6.2 billion.
The all-terrain vehicle (ATV) market is witnessing exponential growth due to military requirements for agile tactical systems that execute border protection duties, reconnaissance, and rapid deployment operations. For instance, in May 2024, Polaris Government and Defense introduced broadened MRZR Alpha light tactical vehicle versions to meet advancing military requirements. The new offering, including an autonomous model, export power variants, and a 6x6 configuration, forms part of the latest product lineup, which increases the cargo bed size by 65% to reach 3,600 lbs payload capacity. The updated enhancements enable military forces to execute mortar deployment and drone operations, as well as manage, command, and control assets in harsh settings.
The demand for all-terrain vehicles is constantly rising as military forces prefer lightweight vehicles to enhance their ability so that they can navigate remote regions at high altitudes. In March 2024, the Polaris Government and Defense introduced two new military snowmobiles, the 2025 Military 850 PRO RMK 155 and the 2025 Military 650 TITAN 155. Besides, the light tactical vehicles provide the military with operational benefits such as navigation of difficult terrain, rapid deployment, and versatile operation for battle tasks. Defense agencies utilize ATVs as part of specialized units, as these vehicles boost operational efficiency and reach in tough geographical zones.
