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All-Terrain Vehicle Market Size, Share & COVID-19 Impact Analysis, By Engine Size (Less than 400CC, 400-800CC, More than 800CC), By Application Type (Sports, Military & Defense, Others), and Regional Forecasts, 2021-2028

Region : Global | Format: PDF | Report ID: FBI106392



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The global all-terrain vehicle market size was valued at USD 5.21 billion in 2020 and is projected to grow from USD 5.37 billion in 2021 to USD 7.50 billion by 2028, exhibiting a CAGR of 4.90% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with all-terrain vehicle witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market declined -5.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The rapid increase in CAGR is due to the demand and growth rate of this market, which will return to pre-pandemic levels once the pandemic is over.

All-terrain vehicles are four-wheeled motorized vehicles primarily used for both on & off-road activities. These vehicles are categorized into two types as designated by the manufacturer. The manufacturer designs Type I for use by one operator rather than a passenger. Type II vehicles are used by operators and passengers and are equipped with specific seating positions behind the operator. Such vehicles have application in various industries, such as construction, sports, military & defense, mining, and agriculture, due to their robust design and performance.

All-terrain vehicles are known for their rugged terrain and maneuverability in off-road capabilities. The rough vehicle design provides additional protection against harsh operating environments compared to traditional cars — ATVs used in sports, forestry, surveying and agriculture, and military & defense. These motorized vehicles have become increasingly popular in recent years as they provide access to remote areas and rugged terrain and conveniently carry equipment & fixtures. Moreover, such vehicles are primarily used in the off-road sector. However, in recent years, some areas have allowed these vehicles to be used on public roads.

The increasing popularity of outdoor entertainment activities such as off-road sports, the growing number of trails & adventure parks, and the rising demand for all-terrain vehicles for military and agricultural applications are key factors driving the market growth. Increased purchasing power and disposable income in developed and emerging economies are expected to drive demand for such vehicles during the forecast period.

Decreasing Sports Events and Restriction From Several Countries for Tourism Activity Due to COVID-19 To Hamper Market Growth

The COVID-19 pandemic has resulted in a global economic slowdown. Lockdowns imposed in several parts of the world to prevent the spread of the virus led to supply chain disruptions and temporary closure of many production facilities.

In recent months, the demand for ATVs has declined, owing to lockdowns enforced in most countries. Since the coronavirus outbreak in December 2019, these lockdowns have temporarily halted vehicle production. In addition, numerous nations have experienced curfew where tourism is banned, similarly banned on ATVs and UTVs in wildlife areas reducing demand for these vehicles. However, as some countries prepare to lift the lockdowns in phases, the market for ATVs is expected to recover in the next few years.

The outlook in key markets, such as Europe, North America, and Southeast Asia, is uncertain due to the COVID-19 epidemic. Furthermore, as raw material costs and tariffs increased due to the U.S.-China trade concerns and new manufacturers from emerging nations started entering into the market, conditions are becoming more challenging. Furthermore, the COVID-19 restriction or complete shutdown led to a decrease in recreational activities and hence affected the global market growth in 2020. The introduction of COVID-19 vaccines in early 2021 could benefit the automotive sector, although the pandemic's duration is difficult to predict.


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Growing Use of Advanced Technology Tool in Industry and Consumers Inclination Toward Off-Road Recreation Activities In Developed Countries To Sets A Positive Trend

One of the primary aspects driving the all-terrain vehicle market growth is a rising customer inclination for off-road recreational activities and adventure sports. Suppliers are now supplying ATVs with GPS tracking and Bluetooth communication technologies, improving the driving experience. Additionally, various technical improvements, such as creating electric quad bikes and installing enhanced steering systems, hydraulic pump connections, joystick controls, and graphic displays in ATVs, are also helping drive the industry forward. A significant expansion in the tourist industry, growing urbanization, and rising consumer expenditure capacity are some variables that have a beneficial influence on the market.


Increasing Demand for Recreational Activities and Rising Demand for ATVs in Agriculture and Military & Defense Will Create a Favorable Trend for Market Growth

The demand for ATVs from military organizations is propelling the market. Polaris Government & Defense, based in the U.S., donated a Sportsman Big Boss and MRZR and two ATVs and UTVs to Latvia. As part of a U.S. government program, these Polaris vehicles were expected to be delivered in 2020 for military uses. As a result, growing demand from the defense sector is boosting the market growth for these vehicles.

The demand for ATVs has increased for various farm-related activities such as weed removal, field plowing, fence repair, animal handling, and general transportation in the agriculture sector. All-terrain vehicles are used in various industries such as construction, manufacturing, utilities, search and rescue, and mining. Prominent firms provide sponsorships and organize off-road racing and adventure sports events to increase product recognition and win new consumers.


High Cost, and Growing ATVs Related Accident may Hamper the Growth of the Market

Despite the growing market across several regions, the initial cost required to purchase a vehicle is high. This high price of these vehicles may hinder market growth. Furthermore, the growing number of all-terrain vehicle-related accidents is a crucial issue limiting demand for off-road vehicles. The developing countries have mandated/issued particular norm related to ATV. However, violations of laws & regulations have caused driving injuries and fatalities due to lack of awareness. According to market statistics published by the U.S. Consumer Product Safety Commission (CPSC), a total of 2,258 deaths involving off-highway vehicles were documented between 2015 and 2017. This also incurs a negative impact on the buying behavior of the customers which is resulting in the limitation and decline in sales worldwide.


By Application Type Analysis

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Sports Segment Dominates the Market as the Adoption of All-Terrain Vehicle is High

Based on application type, the market is segmented into sports, military and defense, and others.

The sports segment dominated the market with a revenue share of more than 45% in 2020. The sports segment holds the largest market share due to the rising number of sports events in developed and emerging economies. Governments across the region have raised budgeted allocations to construct new off-road vehicles, benefiting recreational enthusiasts and boosting adventure sports activities in the area.

The military & defense segment is expected to emerge as the fastest-growing market segment during the forecast period. It is due to an increasing preference for UTV and ATV by military forces worldwide. The increased demand for these vehicles in the military sector is primarily due to the better mobility for tactical operations. Furthermore, the remarkable adaptability and navigational functions give vehicle operators precise directions. The military & defense segment accounted for a 16.33% market share in 2020.

The other segment held the second-largest market share accounted for 34.55% in 2020; meanwhile, it is expected to gain momentum and grow at the fastest CAGR of 5.2% over the forecast period The other segment includes forestry, surveying, agriculture, personal, recreational, and construction. The segment shows lucrative market opportunities during the forecast period owing to the rising demand for ATVs in the agriculture sector for farm-related activities, field plowing, animal handling, weed control, and general transportation. Furthermore, the need for all-terrain vehicles is increasing in different industrial applications, such as mining, construction, manufacturing, and utilities, due to versatile and robust vehicles.

By Engine Size Analysis

400 cc-800 cc Segment Holds the Largest Market Share Due to High Efficiency

Based on engine size, the market is divided into less than 400 cc, 400cc-800 cc, and more than 800 cc.

The 400 cc-800 cc segment holds the largest market share. The 400 cc-800 cc segment accounted for 46.07% in 2020. The 400 cc-800 cc segment is growing at a considerable CAGR of 5.5% owing to its utility value. Vehicles with engine capacity 400-800 CC are designed with a large storage capacity and are frequently used to transport equipment and supplies. Furthermore, government entities utilize these vehicles for search and rescue missions and forest and wildland monitoring. To appeal to a broader audience and explore new application areas, leading market companies are developing ATVs in the 400-800cc category.

The less than 400 cc segment had low growth and high penetration in 2020. The less than 400 cc segment accounted for 36.08 % market share in 2020. The demand for less than 400 cc vehicles will decline during the forecast period due to limited application in sectors, such as military& defense, agriculture, and construction. The less than 400 cc segment holds the second largest market share in all-terrain markets due to high usage in sports and youth ATVs.

The above 800 cc segment is projected to register a robust CAGR of 6.2% during the forecast period. Demand for ATVs with engines more than 800cc is expected to rise as off-trailing sports and events become more popular. Off-trailing sports and competitions require vehicles with larger engine displacement capacity to produce torque, giving participants a competitive advantage. The introduction of better ATVs would allow for competitive rough terrain and desert race events, driving the market revenue with a capacity of 800cc and higher.


North America All-Terrain Vehicle Market Size, 2020 (USD Billion)

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North America Accounted for the Highest Market Share Due to Presence of Leading Suppliers

North America accounted for USD 2.51 billion in 2020 and is projected to reach USD 3.25 billion by 2028, at a CAGR of 3.4% over the forecast period. North America led the market with a revenue share of over 45% in 2020. Some of the leading manufacturers of all-terrain vehicles, such as Polaris, Textron, BRP, and American Honda Motors, among others present in the U.S. and Canada are crucial supporting the development of the market in this region. The U.S. and Canada are the top countries where usage of such vehicles has expanded significantly due to a developed economy, higher disposable income, electric vehicle initiatives, and government laws regulating ATVs. According to market analysis, the U.S. has the most significant share of this market, owing to a strong military, agricultural, sports, entertainment, hunting, forestry, mining, and construction activities. The U.S. is anticipated to remain the region's leading market as demand rises gradually

Europe is anticipated to register a CAGR of 6.3% from 2021 to 2028. The region is likely to see higher demand for ATVs throughout the projection period due to expanding demand for road vehicles in agricultural, military, and defense applications. The market demand is predicted to be boosted by establishing standardized safety requirements and test methodologies and improved rules governing emissions from non-road mobile machinery.

Asia Pacific is anticipated to see a considerable increase in demand for ATV over the projection period. It is due to the large addressable market, increased military spending, and low-cost manufacturing. Major suppliers, such as Suzuki, Honda, Kawasaki, and Yamaha Motor Corporation in the Japan are crucial elements supporting the market growth in this region.

The rest of the world contributes 6.33% due to fewer automotive OEMs, low technology adoption, and less presence of all typed vehicles. However, it is expected to grow at a CAGR of 7.9% from 2021 to 2028.Additionally, the Middle East and Africa will show lucrative opportunities to develop market revenue.


New Product Developments, Advancement in Existing Products, Merger, and Acquisition From Leading Players activities to Expand Market Share

Leading market players, such as Polaris, Inc., Textron, and BRP, are putting more emphasis on R&D to explore long-term growth opportunities. In 2020, the top five companies accounted for most worldwide sales, indicating that the industry is highly competitive and concentrated. The market is dominated by Polaris Inc., American Honda Motor Co., Inc., Bombardier Recreational Products (BRP), Yamaha Motor Corporation, and Arctic Cat Inc. (which was bought by Textron Inc.).


  • Polaris Industries. (Medina, Minnesota, U.S.)

  • Textron (Providence, Rhode Island, U.S.)

  • Honda Powersport (Tokyo, Japan)

  • Kawasaki heavy industries (Tokyo, Japan)

  • Suzuki Motor Corporation (Hamamatsu, Shizuoka, Japan)

  • BRP (Valcourt, Quebec, Canada)

  • Yamaha Motor Corporation (Iwata, Shizuoka, Japan)

  • Cfmoto (Hangzhou, China)

  • Hisun (Chongqing, China)

  • KYMCO, Inc. (Kaohsiung City, Taiwan)


  • August 2021 Kawasaki Heavy Industries, Ltd. announced that ATVs construction would begin on new manufacturing facilities at its Mexican subsidiary Kawasaki Motores de México S.A. de C.V. These new manufacturing facilities will be added to existing Kawasaki Motors Manufacturing Corp. (KMM) facilities in Lincoln, Nebraska, which will also be expanded.

  • April 2021- Arctic Cat unveiled a new ATV for the model year 2022, which will be available at dealerships in July. The new Alterra 600 EPS boasts an all-new engine, gearbox, and chassis that provide more power, improved handling, and easier maintenance. Moreover, the ATV's debut comes with Arctic Cat's 60th anniversary of bringing new and creative products to the Powersports industry.

  • February 2021- BRP announced the acquisition of Faster Faster, Inc. (Alta Motorsassets)'s as part of the company's long-standing interest in new technologies and alternative energy sources for the Powersports industry.

  • August 2020- Polaris Industries launched the all-new Sportsman 450 H.O. and Sportsman 570, which add to the company's ATV lineup. This new generation Sportsman is the smoothest, most vital, and most flexible value ATV on the market, making it the best choice for riders of all skill levels and experience.

  • August 2020- Polaris Inc. announced the launch of its first multi-brand distribution center in Fernley, Nevada. Polaris' booming Aftermarket, Parts, Garments, and Accessories (Aftermarket, PG&A) companies will benefit from the 475,000 square-foot facilities, increasing capacity, improving delivery speed and customer service, and streamlining operations. Moreover, the company has multiple ATVs dealers across all regions to cater to the demand for ATVs.


An Infographic Representation of All-Terrain Vehicle Market

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The global all-terrain vehicle market research report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the Market's growth over recent years.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)


By Application Type

  • Sports

  • Military & Defense

  • Others

By Engine Size

  • Less than 400 CC

  • 400 CC-800 CC

  • More than 800 CC

By Geography

  • North America (By Application Type, By Engine Size)

  • U.S. (By Application Type)

  • Canada (By Application Type)

  • Mexico (By Application Type)

  • Europe (By Application Type, By Engine Size)

  • U.K. (By Application Type)

  • Germany (By Application Type)

  • France  (By Application Type)

  • Rest of Europe (By Application Type)

  • Asia Pacific (By Application Type, By Engine Size)

  • China (By Application Type)

  • Japan (By Application Type)

  • India (By Application Type)

  • Rest of APAC (By Application Type)

  • Rest of the World (By Application Type, By Engine Size)


Frequently Asked Questions

Fortune Business Insights says that the global all-terrain vehicle market size was at USD 5.21 billion in 2020, and it is expected to reach USD 7.50 billion by 2028.

In 2020, North America ATV market stood at USD 2.51 billion.

The all-terrain vehicle market is projected to grow at a CAGR of 4.90% and exhibit steady growth during the forecast period (2021-2028).

The 400-800 cc segment is the leading segment in this market.

Increasing demand for recreational activities, rising demand for ATVs in agriculture, and military & defense will be the driving factors for market growth

Polaris Industries, Textron, and BRP are the major players in the market.

North America dominated the market share in 2020.

The increasing demand for recreational activities and rising adoption of ATVs in the agriculture sector will drive market growth. Increased purchasing power and spending capacity of people in emerging economies will boost the demand for ATVs.

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