Recreational Off-Highway Vehicle Market

Recreational Off-Highway Vehicle Market Outlook (2024 to 2034)

As revealed in the latest study compiled by experienced analysts at Fact.MR, revenue from the global recreational off-highway vehicle market size is calculated to increase from US$ 19.81 billion in 2024 to US$ 68.45 billion by the end of 2034 at 13.2% CAGR.

Trail riding, traveling to far-flung places, and going on outdoor adventures are the main uses of off-highway vehicles. Recreational off-highway vehicle companies cater to a diverse range of clients, including outdoor enthusiasts, adventure seekers, hunters, and residents of rural or isolated areas.

Rising sales of recreational off-highway vehicles (ROVs) are driven by a shift in consumer trends towards power sports, which has increased demand for all-terrain vehicles (ATVs). In addition, consumers are investing heavily in leisure and sports activities due to a growing preference for maintaining a healthy lifestyle worldwide. This spending on leisure and sports is significantly boosting demand for recreational off-highway vehicles, particularly for recreational and touring activities.

Key Market Growth Drivers

• Integration of technologies such as artificial intelligence (AI), battery advancements, and combined electro-hydraulic actuators is boosting the turbocharging electrification abilities of ROVs.
• Demand for off-highway vehicles is increasing at a noteworthy pace due to the popularity of adventure travel and outdoor leisure, enabling drivers to explore inaccessible and challenging areas.
• Technological, design, and engineering advancements have led to the development of more powerful and efficient off-highway vehicles.
• Rising adoption of outdoor activities among millennials and younger generations, along with a trend towards active lifestyles, is fueling the demand for off-highway vehicles.
• Leading players in the market are enhancing their marketing strategies, sponsorships, and promotional events to boost sales and increase profits by attracting more consumers.
• Rise in construction and mining activities in various countries is also contributing to the expansion of the recreational off-highway vehicle market size.

Report Attribute	Detail
Recreational Off-Highway Vehicle Market Size (2024E)	US$ 19.81 Billion
Forecasted Market Value (2034F)	US$ 68.45 Billion
Global Market Growth Rate (2024 to 2034)	13.2% CAGR
North America Market Share (2024E)	26.1%
East Asia Market Value (2024E)	US$ 4.56 Billion
Gasoline Segment Value (2034F)	US$ 33.25 Billion
Utility Task Vehicles (UTVs) Segment Value (2034F)	US$ 26.76 Billion
Key Companies Profiled	Mahindra & Mahindra; New Holland; Polaris Industries Inc.; Yamaha Motor Co. Ltd.; Textron Specialized Vehicles Inc.; KYMCO USA; Bennche, LLC; CFMOTO; Hisun Motors Corporation; American Honda Motor Co. Inc.; John Deere.

Which Market Trends are Recreational Off-Highway Vehicle Manufacturers Exploiting?

“Need to Reduce Reliance on Fossil Fuels and Focus on Advancements in Sensors”

Progression in the development of electric hybrid vehicles and systems is accelerating with the increased integration of sensors and electronics. This is a significant recreational off-highway vehicle market trend benefitting manufacturers.

The shift toward electric ROVs is gaining momentum. This movement is driven by factors such as the need to reduce reliance on fossil fuels, the potential for electric power to enhance vehicle efficiency, and the ability to recover energy through efficient hybrid systems. In addition to using alternative energy to power equipment, vehicle manufacturers are exploring various levels of electrification, including mild hybridization and full electrification.

What is Hampering the Earnings of Recreational Off-Highway Vehicle Manufacturers?

“High Initial Cost of Off-Highway Vehicles and Availability of More Affordable Alternatives”

High pricing of recreational off-highway vehicles is limiting their adoption and demand due to a restricted consumer base. Furthermore, the high cost is compounded by additional maintenance expenses, negatively impacting consumers' purchasing power. Therefore, the higher initial cost of the vehicle, along with maintenance expenses, may lead end users to seek alternatives.

Popularity and availability of alternative vehicles, such as bicycles and scooters, which are more affordable, pose a challenge to recreational off-highway vehicle market growth.

Country-wise Insights

North America is poised to hold 26.1% of the worldwide recreational off-highway vehicle market share in 2024. This growth is attributed to rising participation in sports and recreational activities among the youth. Demand for recreational off-highway vehicles in the East Asia market is forecasted to increase at a noteworthy CAGR of 13.5% throughout the projection period (2024 to 2034).

What is Pushing Sales of Recreational Off-Highway Vehicles in the United States?

“Increasing Construction of Parks, Off-Road Trails, and Recreational Spaces”

Attribute	United States
Market Value (2024E)	US$ 4.42 Billion
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 15.1 Billion

Sales of recreational off-highway vehicles are increasing at a significant pace in the United States due to the construction of parks, off-road trails, and other recreational spaces. Additional areas being designated for off-road activities provide enthusiasts with more opportunities to explore and enjoy their love of outdoor adventure. These specially designed trails and parks offer safe, authorized areas for riders to push the limits of their ATVs, UTVs, and off-road bikes with minimal environmental impact. Availability of such designated areas not only enhances the experience for off-highway vehicle owners but also attracts new participants, boosting sales in the regions where these facilities are located.

• In 2022, American Landmaster introduced its electric UTV with a lithium-ion battery offering various options. The entry-level model has a range of 45 miles on a full charge. This introduction responds to the growing demand for electric utility vehicles and demonstrates the company's commitment to environmentally friendly solutions.

Why is Popularity of Off-Highway Vehicles High in Japan?

“Growing Popularity of Overlanding and Adventure Travel”

Attribute	Japan
Market Value (2024E)	US$ 1.12 Billion
Growth Rate (2024 to 2034)	14.1% CAGR
Projected Value (2034F)	US$ 4.18 Billion

In Japan, overlanding and adventure travel are becoming increasingly popular. These travel styles involve using off-road vehicles capable of traversing difficult-to-reach places. More individuals are engaging in overlanding activities that allow them to explore Japan's vast wilderness areas, alpine regions, and natural landscapes, seeking authentic experiences and opportunities to disconnect from urban life.

Demand for reliable and capable off-highway vehicles, such as SUVs, pickup trucks, and specialized off-road vehicles, is rising at a noteworthy pace due to the growing popularity of overlanding in Japan. This trend is also creating new opportunities for domestic players in the automotive market to expand their vehicle portfolios by adding off-road vehicle designs.

Category-wise Insights

Based on application, the market is segmented into sports, agriculture, and military. The sports segment occupies a substantial market share due to the adaptability, off-road capabilities, and thrilling experiences provided by recreational off-highway vehicles.

How are Battery Technology Advancements Increasing Uptake of Electric Off-Highway Vehicles?

“Battery Technology Advancements Leading to Longer Battery Life and Faster Charging Times”

Attribute	Electric
Segment Value (2024E)	US$ 2.68 Billion
Growth Rate (2024 to 2034)	22% CAGR
Projected Value (2034F)	US$ 19.59 Billion

Electric recreational off-highway vehicles are increasingly viewed as a cleaner alternative to traditional gas-powered vehicles, with environmental sustainability becoming more important. In addition, advancements in battery technology are resulting in longer battery life and faster charging times, enhancing the viability of electric off-highway vehicles for recreational use. Lower operating costs of electric vehicles, combined with government incentives in various countries, are also driving the rising demand for electric recreational off-highway vehicles.

Why are Sales of Utility Task Vehicles (UTVs) Increasing at a Remarkable Pace?

“Rising Use of UTVs in Industrial, Agricultural, and Construction Activities”

Attribute	Utility Task Vehicles (UTVs)
Segment Value (2024E)	US$ 6.36 Billion
Growth Rate (2024 to 2034)	15.5% CAGR
Projected Value (2034F)	US$ 26.76 Billion

The popularity of utility task vehicles (UTVs) is continuously increasing worldwide. They are primarily used for industrial, agricultural, and construction activities, as well as for outdoor activities such as hunting and off-roading. Manufacturers are launching new models with enhanced features and functionalities, broadening the appeal of UTVs to a wider market. Rising UTV sales are driven by the growing demand for off-road vehicles and the growing interest in outdoor activities.

Competitive Landscape

The global market of recreational off-highway vehicles is extremely fragmented and competitive owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players in the recreational off-highway vehicle market such as mergers and acquisitions, expansions, collaborations, and partnerships. Companies are also focusing on producing UTVs with high power, long-range, and advanced battery technology to capitalize on the growing demand for electric sports vehicles.

• In June 2024, Polaris Inc. and the Michigan Economic Development Corporation (MEDC) commemorated the beginning and grand opening of an electric off-road vehicle charging network. The off-road charging network in Michigan's Upper Peninsula is now operational, having been funded by a Mobility Public-Private Partnership & Programming (MP4) grant from the Office of Future Mobility & Electrification (OFME) and awarded to Polaris less than a year ago. Approximately 100 miles of breathtaking off-road routes in the Upper Peninsula are supported by this first-of-its-kind off-road EV charging network.
• In September 2022, the KingQuad ATV product line, which has a completely independent A-arm/I-beam rear suspension and an independent double A-arm front suspension, was introduced by Suzuki Motor USA LLC.
• In July 2022, the introduction of a four-seater Stag Utility Terrain Vehicle (UTV) with a peak power of 107 kW and peak torque of 360 Nm, over 160 km of range, and a 42 kWh battery pack was announced by Volcon Inc.
• In December 2021, the innovative hydrogen-powered ROV (Recreational Off-Highway Vehicle) concept, which combines off-road performance with nearly zero emissions, was unveiled by Lexus. With its exposed suspension, safety cage, and large off-road tires for navigating muddy trails, the automobile resembles an off-road vehicle. The Lexus ROV has the following measurements: 3,120 mm in length, 1,725 mm in width, and 1,800 mm in height.
• In 2021, Arctic Cat announced the launch of a snowmobile line-up, offering electronic power steering and high-performance, turbocharged sleds.

Fact.MR provides detailed information about the price points of key manufacturers of recreational off-highway vehicles positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Recreational Off-Highway Vehicle Market Research

• By Engine Type :

  • Gasoline
  • Diesel
  • Electric

• By Vehicle Type :

  • All-Terrain Vehicles (ATVs)
  • Utility Task Vehicles (UTVs)
  • Snowmobiles

• By Engine Capacity :

  • Less than or equal to 750 cc
  • Greater than 750 cc

• By Application :

  • Sports
  • Agriculture
  • Military

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa