GLOBAL REPORT
According to the latest research by Power Systems Research, the global ATV & SxS market size is valued at $13.54 billion in 2024 and is expected to expand at a CAGR of 6.87% during the forecast period, reaching $22.85 billion by 2032.
ATV stands for “All Terrain Vehicle.” An ATV is an off-road vehicle with handlebar steering and a motorcycle-style seat that can seat a driver and one passenger in tandem. ATVs are designed for a variety of uneven terrain and roads. A side-by-side vehicle (SxS) is an off-road vehicle known for its 4- to 6-wheel design, unique side-by-side bucket seat setup, and steering wheel and pedal drive system.
Source: Power Systems Research
Growth Drivers
- Many nations host annual championships, which are gaining popularity because of ATVs.
- Growing popularity of adventure sports
- Increased development of off-road riding areas
- Non-competitive leisure purpose activities are created to promote tourism.
- Increasing usage of ATVs and SxSs in military
- ATVs and SxSs are becoming increasingly popular for military operations, including troop transportation, driving across challenging terrain, and improved mobility for tactical tasks.
- Increased development of new models with increased flexibility.
- Development of electric units.
Industry Challenges
- High labor costs.
- Increasing tariffs and taxes associated with imports affecting overall costs.
- Gasoline and electric SxS/ATVs are expected to increase in their prices.
- High maintenance cost of SxSs/ATVs.
- Nearly all the accidents related to these vehicles are caused due to the driver’s failure to act safely and reasonably.
- ATV/SxS use in a wildlife area can have several negative environmental consequences, including noise pollution, vegetation damage, increased runoff, soil erosion, and deteriorated water quality and threatens the habitat of wildlife.
KEY MARKET TRENDS
The market is seeing a surge in demand due to all-terrain vehicles’ capacity to operate effectively in rugged and steep terrain. Consumers are using them in agricultural areas, mountains, and forests. ATVs are being used for farming which requires less labor and lowers total farming costs. PSR
Michael Aistrup is Senior Analyst at Power Systems Research
