All-terrain Vehicle Sector: Growth Drivers and Challenges
Growth Drivers
- Integration of advanced features: The all-terrain vehicle market is gaining momentum from the rising interest in eco-friendly and sustainable vehicle types. Green technologies are driving manufacturers to develop environmentally friendly and energy-efficient ATV models, which is attracting consumers to sustain demand for these vehicles. For instance, in January 2025, DRR USA announced the production of its EV Safari 4x4 electric ATV and gas-powered mini ATVs. The new vehicle is designed for silent, emission-free operation, making it ideal for both recreational enthusiasts and professionals in search and rescue or remote operations. This development highlights the company’s efforts to create immense opportunities for the market.
- Expansion of adventure tourism: Adventure tourists and recreational off-roaders are significantly adopting all-terrain vehicles. The popularity of recreational vehicles demonstrates increasing demand for outdoor activities, while expanding motorsport travel experiences in mountain areas. Several companies are introducing high-performance ATVs for off-road adventures and recreational motorsports. In August 2024, Yamaha Motor Corporation introduced its 2025 off-road ATV models for recreational use and adventure. The new vehicle lineup is available with optional EPS and Special Edition packages with added accessories and features. Some innovations feature automatic diagnostic tools, sophisticated suspension technology, and adjustable performance settings that adapt to various terrains.
Challenges
- High risk of accidents: A significant risk of accidents and safety concerns is a major factor limiting the growth of the ATV market. The design features of ATVs and their operational environment elevate the risk for rollovers and collisions alongside handling mistakes that occur with inexperienced riders. The safety concerns bring risks for ATV operation, as families and youth riders often fail to master proper ATV handling.
All-terrain Vehicle Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.8% |
|
Base Year Market Size (2024) |
USD 6 billion |
|
Forecast Year Market Size (2037) |
USD 12.5 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
Currently in 2025, the industry revenue of all-terrain vehicle is estimated at USD 6.2 billion.
The global all-terrain vehicle market is likely to rise from USD 6 billion in 2024 to USD 12.5 billion by 2037, exhibiting a CAGR of around 5.8% during the forecast timeline, between 2025 and 2037.
North America industry is anticipated to account for largest revenue share of 34% by 2037, due to presence of key manufacturers in the region.
The major players in the market include Suzuki Motor Corporation, Yamaha Motor Co., Ltd., BRP, Kawasaki Heavy Industries. Ltd., KWANG YANG MOTOR CO., LTD., HISUN, KUBOTA Corporation, ZHEJIANG CFMOTO POWER CO., LTD, Polaris Inc., Textron Inc.