GVR Report cover All-terrain Vehicle Market Size, Share & Trends Report

All-terrain Vehicle Market Size, Share & Trends Analysis Report By Engine Type (Below 400cc, 400cc-800cc, Above 800cc), By Application Type (Agriculture, Sports, Recreation, Military & Defense), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-076-7
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global All-terrain vehicle market size was valued at USD 1.25 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. The rising popularity of outdoor sports activities, including off-road events, the increasing number of adventure and trails parks, and the rising demand for ATVs for agricultural and military applications are the major factors propelling the growth of the market. Furthermore, the growing disposable income and purchasing capacity of individuals in developed and developing economies are anticipated to drive the demand for all-terrain vehicles over the forecast period.

U.S. all-terrain vehicle market size, by engine type, 2020 - 2030 (USD Million)

The market for all-terrain vehicles witnessed negative growth during the first half of 2020 owing to the spread of the COVID-19 virus. The global lockdown and restrictions led to the temporary closure of various assembly and manufacturing units. Lower automotive sales are expected to further hamper the ATV market in the coming quarters, thereby hampering the market growth. However, the increasing demand for recreational activities across the globe is likely to contribute to market growth.

An all-terrain vehicle is also known as a light utility vehicle. It is a motorized off-road vehicle designed to travel on four wheels with low-pressure or non-pneumatic tires and a handlebar for steering control. ATVs are divided into two categories: type I and type II. The type I category is intended for use by a single rider with no passengers and the type II category is intended for use by a rider and a passenger. Type II ATVs are equipped with a designated seating position behind the rider.

ATVs are best known for their maneuverability in off-road and rough terrain capabilities. The design of the vehicle ensures better protection from harsh operating environments compared to conventional vehicles. They have wide applications in forestry, sports, military, agriculture, and defense. Over the past few years, ATVs have gained popularity owing to their ease of use in remote areas and ability to offer a convenient way to carry supplies and equipment. These vehicles are often used in off-road surroundings, although in recent years, several regions have allowed them to be driven on public roads as well.

The demand for ATVs has witnessed a rise in the agricultural sector for various farm-related activities, such as weed control, fence mending, field plowing, general transportation, and animal handling. They are also used in applications such as manufacturing, construction, utilities, mining, and search and rescue. Several key companies are organizing adventure sports and off-road racing events and offering sponsorships to acquire new customers and increase product visibility.

The demand for gasoline ATVs has increased significantly owing to their wide uses in sports and military applications. Heavy-duty ATVs are primarily equipped with diesel engines for material handling and powerful towing applications. Electric ATVs are gaining popularity in Europe and North America as an alternative for ATVs operating on diesel and gasoline. Fluctuating prices and environmental concerns of gasoline and diesel are some factors that are projected to drive the demand for electric vehicles across the globe. The introduction of powerful electric motors enables electric all-terrain vehicles to offer a performance advantage over the diesel and gasoline variants.

Engine Type Insights

Based on engine type, the ATV market has been segmented into below 400 cc, between 400cc-800cc, and above 800cc. The 400cc-800cc engine segment dominated the market in 2021, with a revenue share of over 48.2%. The growth can be attributed to the growing popularity of these vehicles for utility activities. For instance, ATVs are built with a considerable amount of storage space and are often used for hauling supplies and equipment. Government organizations are adopting these vehicles for search and rescue operations and monitoring wild and forest areas. Prominent players in the market are launching 400cc-800cc ATVs to cater to a broader range of users and discover new application areas. For instance, Quad 750 XP and 500 XP were launched by Suzuki Motor of America, Inc. in the 400-800cc category with an improved towing capacity to meet the customer demand.

The above 800cc segment is anticipated to register a CAGR of 7.4% over the forecast period. An increase in off-trailing events and activities is projected to drive the demand for ATVs with above 800cc engine capacity. Off-trailing events and activities need vehicles with advanced engine movement capacities to deliver improved torque performance which enables the participants to gain a competitive advantage. The introduction of improved ATVs would enable competitive desert race events and rough terrain, thereby proliferating the demand for ATVs with engine capacity of 800cc and above. For instance, in October 2018, Polaris launched two ATVs, namely Sportsman 850 SP and XP 1000. These ATVs offer higher ground clearance and suspension travel.

Application Insights

Based on application, the ATV market has been segmented into sports, agriculture, military and defense, and recreational. The recreational segment dominated the market in 2021 with a share of above 65.5%. The high demand for ATVs for recreational purposes can be attributed to the increasing number of hiking and camping activities. Furthermore, government initiatives to promote ATVs, such as making grants available to individuals engaged in rough terrain and off-road activities, are expected to propel the growth of the market over the forecast period. For instance, the Oregon Parks & Recreation Department introduced an ATV grant program in 2017 that helps to pay for emergency medical services, law enforcement, operation and maintenance, and land acquisition.

Global all-terrain vehicle market, by application, 2021 (%),

The military and defense segment of the all-terrain market is expected to register a CAGR of 7.9% over the forecast period. ATVs offer maneuvering and mobility for strategic missions. Original Equipment Manufacturers (OEMs) involved in tactical contracts with military organizations provide off-road transport, utility, electric ATVs, and combat for military applications. For instance, Polaris offers various ATV models, such as Sportsman MV850, DAGOR A1, and Mrzr D4, for military applications.

Regional Insights

North America was the most prominent market in 2021, accounting for a revenue share of over 56.3%. The adoption of ATVs witnessed a considerable increase in the U.S. and Canada owing to various factors, such as the higher disposable income of residents, developed economy, government regulations regarding ATVs, and upcoming electric vehicle projects. The region has numerous off-road terrain trails and parks such as Northwest Off-Highway Vehicle Park, Rocky Ridge Ranch, and River Valley Motocross as these off-road terrain trails and parks attract many tourists, thereby driving the growth of the market.

The MEA market is expected to register a CAGR of 10.0% from 2022 to 2030. The market growth can be attributed to the growing demand for off-road vehicles in the military & defense and agricultural sectors. The development of consistent test methods and safety requirements, along with revised regulations owing to emissions from non-road mobile machinery, is anticipated to boost the growth of the market. Furthermore, the market in the Asia Pacific region provides significant growth opportunities for ATV manufacturers owing to the low manufacturing cost, increasing military expenditure, and large addressable market.

Key Companies & Market Share Insights

Prominent players that dominated the all-terrain vehicle market in 2021 include Polaris Inc.; Bombardier Recreational Products (BRP); American Honda Motor Co., Inc.; Arctic Cat Inc. (acquired by Textron Inc.), and Yamaha Motor Corporation. These players focus on new product launches, geographic expansions, strategic partnerships, and mergers & acquisitions to improve their product offerings, enhance their market presence, and gain a competitive edge. These initiatives also assist in creating awareness regarding driver safety among end-users and assist the companies in expanding their product portfolio and brand value. For instance, In August 2020, Polaris Inc. announced the launch of new ATVs, Sportsman 570 and Sportsman 450 H.O. The launch helped the company to improve its product portfolio and cater to consumer demands. Some of the prominent players operating in the global all-terrain vehicle market are:

  • Polaris Inc.

  • American Honda Motor Co., Inc.

  • Bombardier Recreational Products (BRP)

  • Yamaha Motor Corporation

  • Arctic Cat Inc.

All-terrain Vehicle Market Report Scope

Report Attribute


Market size value in 2022

USD 1.28 billion

Revenue forecast in 2030

USD 1.92 billion

Growth Rate

CAGR of 5.2% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Engine type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Polaris Inc.; Bombardier Recreational Products (BRP); American Honda Motor Co., Inc.; Arctic Cat Inc.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global all-terrain vehicle market report based on engine type, application, and region:

  • Engine Type Outlook (Volume, Units; Revenue, Million 2018 - 2030)

    • Below 400cc

    • 400cc-800cc

    • Above 800cc

  • Application Outlook (Volume, Units; Revenue, Million 2018 - 2030)

    • Agriculture

    • Sports

    • Recreational

    • Military and Defense

  • Regional Outlook (Volume, Units; Revenue, Million 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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