The Global Off-Road High-Performance Vehicle Market size is projected to be worth USD 12,171.14 million by 2030, registering a CAGR of 5.95% during the forecast period (2022–2030).
Off-road high-performance vehicles are characterized by high power, high ground clearance, and capability of performance that ordinary vehicles cannot pull off. For the study, we have considered all off-road all-terrain vehicles and utility task vehicles that are powered by turbo engines and have a horsepower of 250 PS and above.
With the continuous spread of the novel coronavirus across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The impact of COVID-19 on the global economy is changing every day. It is proving to be a big challenge for various industries resulting in job losses. The pandemic has caused recreational activities and sporting events to either be postponed or widely canceled due to a worldwide lockdown. Large gatherings were strictly prohibited from controlling the spread of the virus, thus, impacting the motorsports industry largely.
Global key companies in the off-road high-performance vehicle market are facing a slowdown due to COVID-19 and are unable to initiate projects and execute product developments. Moreover, to minimize the slowdown in production processes, many companies depend on their respective governments to create special tax schemes and incentives that could help the companies minimize the losses and mitigate the losses that occurred in this pandemic.
ATV organizations and ATV manufacturing companies are developing ATV-specific experience zones to encourage the adoption of off-road ATV vehicles globally. Such ATV experience zones feature artificially created tracks and multiple undulations, slush pits, inclines, and obstacles, which help create an exciting trail for ATV users to experience the thrill of riding an ATV. Furthermore, major power sport vehicle manufacturers are organizing events to increase the awareness of experience zones. The facilities also provide special assistance to first-time ATV riders to make them familiar with the use of an ATV. ATV experience zones promote off-roading culture and encourage amusement park owners and entrepreneurs to explore adventure sport as a business vertical in developing economies. ATV experience zones is expected to drive the global Off-Road High-Performance Vehicle market during the forecast period. In India, Polaris Industries launched an off-road racetrack, enabling users to experience off-road vehicles at a minimum price. India is a growing economy with rising per capita disposable incomes. Such initiatives by companies are expected to gradually boost the sales of off-road vehicles in such regions. Thus, the increase in ATV experience zones is expected to drive the growth of the global off-road vehicle market during the forecast period.
There are several reasons for the slowdown of the automotive industry, including harder getting loans, rental taxi or car factor, big cities being too crowded, too many back-to-back changes in the industry, electrification equation, and many more. Due to the current economic environment in India, banks have become stricter about giving out loans, favoring only those individuals with high CIBIL scores. Also, due to the boon of the smartphone and cheap internet, many countries have convenient cab services from apps. Even if people have the money to buy a car, they will likely spend a lot of time driving it in congested traffic and/or looking for a suitable parking space. There are too many changes going on in terms of changes and uncertainties regarding regulations and government policy. Therefore, this slowdown in the industry is expected to hamper the growth of the Global off-road high-performance vehicle market.
Advanced technologies such as GPS on these vehicles for creating field boundaries and marking field lines decrease soil compaction and save planting time by plotting the lines. Nowadays, several technological advancements have taken place, which helps the off-road high-performance vehicle market take a boost. Off-road vehicles need super-tough suspension systems. Some ATVs have tires without air to battle rugged terrain without going flat. In Downhill Descent Control, utilizing technology already onboard the vehicle like anti-lock brakes and traction control systems, computers dole out braking force appropriately to hold the vehicle at a present speed. Trail Crawl Control is another technology that uses some of the same electric gubbins as downhill descent control. It is far more complicated. While the downhill wizardry uses the brakes to keep things in check, this tech holds a preset speed by braking individual wheels and redistributing power when slip is detected. Electronically Disconnecting Sway Bars effectively connect the two front wheels, limiting the distance they can travel vertically. Thus, the increasing adoption of utility vehicles in agriculture is anticipated to impact the growth of the off-road vehicle market surely.
In the design and development stage, the dimensions of the off-road high-performance vehicle products are calculated and designed according to industry and government standards. While designing off-road vehicles, factors such as the capacity of the engines, height and weight, comfort, current demand, and recommended applications are considered. After finalizing the design, the raw materials and components are selected according to the design requirements. Off-road vehicles require various raw materials such as cast iron, aluminum, steel, rubber, plastic, and resin, which are the inputs for manufacturing personal protective equipment. Furthermore, off-road vehicles require various components such as engines and transmission assembly, rods, lighting assembly, tires, brake assemblies, steering assemblies, vehicle frames, and fuel tanks. Variation in the supply of these components could negatively impact the manufacturing process.
After the necessary components are procured in the manufacturing stage, the off-road vehicle manufacturers manufacture the equipment according to the finalized design and the requirements of the end users. After the manufacturing process is completed, the finished off-road vehicle high-performance products undergo certain quality checks to ensure that they comply with the required performance standards, efficiency, and precision in critical work conditions before being sent to the end users. The distribution of off-road high-performance vehicle products is mainly carried out through authorized and local distributors, dealers, and exporters worldwide. The leading off-road vehicle high-performance product manufacturers also enter strategic alliances with the local dealers and components manufacturers to compensate for rules and regulations pertaining to operations in different countries, such as China, Japan, Germany, the US, and the UK.
Based on application:
Defense and recreation are the segments based on the application of the Global Off-Road High-Performance Vehicle Market. The recreation segment is expected to have the highest CAGR and dominate the market share during the forecast period. ROVs are motorized vehicles having four or more tires designed for off-road use and intended by the manufacturer for recreational use by one or more persons. ROVs are intended to be used on terrain similar to that on which all-terrain vehicles (ATVs) are used. With the increasing popularity of outdoor recreational activities and adventure tourism, the off-road high-performance vehicle market is likely to witness significant growth during the study period.
The regions are classified as North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America holds a significant share of the Off-Road High-Performance Vehicle market. The increase in demand for off-road vehicles and the growing number of Powersports experience zones across the US, Canada, and Mexico boost the demand for off-road vehicle products in the region. Furthermore, there is a massive increment in off-road vehicle sales in the region due to the extensive presence of major off-road high-performance vehicle manufacturers, such as BRP Inc., Polaris Industries Inc, and Arctic Cat. Many off-road high-performance vehicle manufacturing companies are investing in research and development to improve fuel storage capacity, fuel efficiency, and engine lightweight technology, which is expected to enhance the sale of off-road high-performance vehicles in North America during the forecast period.
Europe is one of the key markets for automotive vehicle manufacturers due to the increasing use of these vehicles in recreational, construction, defense, and military activities. Europe is actively adopting new technologies due to the high employment rate and an increase in the purchasing power of consumers. The rising young population, growing interest in sports competitions, and increasing utility activities drive the off-road high-performance vehicle s market in Europe. Europe is a hub for car manufacturers due to major off-road high-performance vehicle manufacturers such as Yamaha and Honda and a large customer base. Additionally, many automotive vehicle manufacturers are focusing on expansion by setting up manufacturing units in the region. The all-terrain vehicle industry European association (ATVEA) has developed an appropriate legal and regulatory framework regarding the design and use of ATVs at European and national levels. Furthermore, the rising military expenditure and increased purchasing power of users are expected to fuel the growth of the off-road high-performance vehicle market in the region during the forecast period.
The global off-road high-performance vehicle market consists of various global and regional service providers who are continuously evolving to enhance their market position. The growth of the off-road high-performance vehicle market is driven by the growing demand for these vehicles from the military sectors. Furthermore, the technological advancement in off-road vehicles is expected to create a huge growth opportunity for the market in the future years.
List of Key Companies covered in the report:
The Global Off-Road High-Performance Vehicle Market is segmented based on application and region in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views, and predict the emerging and fast-growing segments, regions, and countries with potential for development in the Global Off-Road High-Performance Vehicle Market.
|Market Size||2030: USD 12,171.14 Million|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa, and South America|
|Key Vendors||BRP (Valcourt), Polaris Industries, Inc. (US), Yamaha Motors Co, Ltd (Japan), Suzuki Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), AEV Conversions (US), Patriort Campers (Australia), Bowler Motors (UK), The Chelsea Truck Company (UK), Wildcat Automotive (UK), Extreme Offroad & Performance (US), Rezvani Motors (US), Zarooq motors (UAE), Rally Fighter (US)|
|Key Market Opportunities||Technological advancements in off-road vehicles|
|Key Market Drivers||Increasing demand from the military sector Increase in ATV experience zones|
The Global Off-Road High-Performance Vehicle Market would register a growth of ~5.95% during the forecast period.
The slowdown of the automotive industry is a key restraining factor for the Global Off-Road High-Performance Vehicle Market
North America would enjoy the upper hand in the Global Off-Road High-Performance Vehicle Market