All terrain vehicle (ATV) marketsize is anticipated to witness significant growth from 2016 to 2023. Proliferating use of these vehicles in numerous applications such as sports, grazing and entertainment is likely to fuel demand over the forecast period.
Macro economic factors such as escalating customer self-reliance level, high standard of living, rising employment rate as well as the health of the housing industry along with ease of credit availability are expected to drive growth. The surge in the industry can also be attributed to increasing spending capability among people. Furthermore, unremitting economic development along with rising urban population are estimated to fuel all terrain vehicle market size.
The U.S. all terrain vehicle market size was valued over USD 4.9 billion and it is likely to grow at a CAGR of over 7.5% from 2016 to 2023. Canada and the U.S. are expected to be the largest regions and are likely to hold more than three fourth of the overall industry shares. Flourishing recreational needs coupled with rising disposable incomes in the region along with rising significance of these vehicles in various sectors such as forestry, agriculture, hunting and fishing is expected to act as catalyst for industry growth.
Rising interest rates in the region is projected to hider the revenue growth, due to which less number of consumers are willing to finance their vehicle purchase over the forecast period. Canada all terrain vehicles market size was valued over USD 665 million in 2013. In addition, it also recorded the sales of more than 54 million units in 2013. Europe is also projected to witness substantial growth due to increasing demand for these vehicles in the region.
A large number of these vehicle users are now shifting their focus on side-by-side (SxS) owing to features offered such as better riding experience and augmented ease of mobility. Unique features presented by SxS namely rollover protection bars as well as seat belts are anticipated to significantly impact the industry demand over the forecast period.
Unfavourable climatic situations might pose a challenge to the industry demand over the coming few years. In addition, rising environmental concerns is likely to hider the industry growth over the several forth coming years. Furthermore, rising number of injuries and deaths incidents occurring due to these vehicles is estimated to pose challenge to the industry demand over the couple of fourth coming years.
The ATV market can be segmented on the basis of type, technology as well as application. Based on type the industry can be segmented into sport utility, sport, turf, youth and utility. Sport utility ATV’s range from 250cc to 700cc, Sports class ATV range from 200cc to 400cc, Utility ATV’s range from 250cc to 700cc where as high-performance ATV’s range from 350cc to twin cylinder 750cc.
Asia Pacific all terrain vehicle market size is also projected to exhibit significant growth due to increasing spending capability. In addition, rapidly growing urban population might also justify the surge in the region over the forecast period. China is estimated to witness considerable growth due to economic adjustments going on in the region. In addition, presence of huge number ATV enterprises in the region is forecast to boost the industry growth.
The products offered by Chinese companies mainly ranged from 50 cc to 250 cc. Sports application accounted for 28%, followed by entertainment application accounted for 25%. Agriculture sector applications were valued to account for 18%, military segment accounted for 9% and hunting application were forecast to accumulate 5% of the overall regional demand in the country. It is likely to exceed 365,200 units by 2023.
Key industry participants in all terrain vehicle market share include Yamaha, CFMOTO, Zhejiang Kandi Vehicles, Polaris, Hisun, Kawasaki, Chongqing SHINERAY Motorcycle, John Deere, Chongqing Jianshe Motorcycle, Kymco, Suzuki, Honda, BRP, Can-Am, Arctic Cat among others. As of 2013, Yamaha was estimated to be the third biggest ATV vendor after Polaris and Honda. It was projected to account for more than 17% of the overall industry share in 2014.
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