Fact.MR, a market research and competitive intelligence provider, in its recently published research report, reveals that worldwide demand for off-road vehicles is predicted to increase at a CAGR of 8.1% through 2033. As a result, the global off-road vehicle market is forecasted to reach a value of US$ 47.4 billion by 2033-end.
Growing adoption of off-road vehicles for several types of recreational activities, including sports & trail riding, is predicted to generate decent revenue streams for manufacturers. In addition, a substantial increase in the demand for all-terrain vehicles for gardening & farming activities, including field ploughing, lawn mowing, and seed spreading, is also contributing to market expansion across regions.
Key Takeaways from the Market Study
- Worldwide demand for off-road vehicles reached a market value of US$ 20.1 billion in 2022.
- The global off-road vehicle market is estimated at US$ 21.73 billion in 2023.
- The market is projected to reach a valuation of US$ 47.4 billion by the end of 2033.
- Sales of off-road vehicles are projected to rise at a CAGR of 8.1% from 2023 to 2033.
- Worldwide demand for all-terrain vehicles is predicted to expand at a CAGR of 8.1% through 2033.
- Global sales of off-road vehicles with electric propulsion are forecasted to rise at a CAGR of 17.1% from 2023 to 2033.
- Sales of off-road vehicles for recreational purposes are set to reach US$ 16.1 billion by 2033-end.
- The North American market stood at US$ 12.1 billion in 2022.
“Rising traction for off-roading sports events, significant growth of the tourism industry, and growing consumer interest in off-road recreational activities are forecasted to drive opportunities for suppliers of off-road vehicles,” says a Fact.MR analyst.
Rising Demand for No-emission Vehicles Fueling Demand for Off-Road Vehicles with Electric Propulsion
Worldwide demand for off-road vehicles with electric propulsion is predicted to advance at a CAGR of 17.1% from 2023 to 2033. Governments from various countries around the world are taking initiatives to curb pollution and carbon emissions that are estimated to boost demand for electric vehicles.
Growing off-roading activities are projected to fuel demand for ORVs (off-road vehicles) due to the ability of electric motors to offer instant torque and power to vehicles.
Suppliers of off-road vehicles are incorporating numerous strategies for different purposes, including new developments, ensuring quality control of products, management of supply chain systems, etc. Product launches, collaborations, partnerships, etc., are some key strategies that are adopted by players to expand their reach across geographies.
For instance :
- Vlcon Inc., in July 2022, announced the launch of the Stag, which is a fully electric UTV and offers better performance with less emissions and noise.
- BRP, in April 2022, announced updates to Can-Am Spyder and Ryker, the company’s three-wheeled motorcycle models. These updates aim to enhance the stability and performance of the vehicles.