U.S. Off-road Vehicles Market Size to Reach USD 19.09 Bn by 2033

Prathamesh Sakpal

1 month ago

The U.S. off-road vehicles market size reached USD 12.63 billion in 2023 and is projected to attain around USD 19.09 billion by 2033, growing at a CAGR of 4.40% from 2024 to 2033.

Key Points

By product type, the three-wheeler segment held the largest market share of 46% in 2023.
By product type, the service segment is anticipated to grow at a remarkable CAGR of 8.4% between 2024 and 2033.
By propulsion type, the diesel segment generated over 47% of market share in 2023.
By propulsion type, the gasoline segment is expected to expand at the fastest CAGR over the projected period.
By application, the sports segment generated over 38% of the market share in 2023.
By application, the military segment is expected to expand at the fastest CAGR over the projected period.

The U.S. off-road vehicles market comprises various types of vehicles such as all-terrain vehicles (ATVs), utility task vehicles (UTVs), dirt bikes, and other off-road equipment. These vehicles are designed for use on rough terrains such as dirt trails, sand dunes, and rocky landscapes. The market has seen steady growth due to an increase in outdoor recreational activities and a rise in demand for vehicles that can handle various terrains.

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Growth Factors

One of the primary growth factors for the U.S. off-road vehicles market is the increasing popularity of outdoor recreational activities like trail riding, dune bashing, and off-road racing. Additionally, advancements in vehicle technology, including more efficient engines and better safety features, are making off-road vehicles more appealing to consumers. The market also benefits from a growing interest in adventure tourism and travel.

U.S. Off-road Vehicles Market Data and Statistics

In August 2022, Polaris introduced its latest flagship RZR Pro R Sport ATV model in India, boasting a robust 1997 cc 4-stroke DOHC inline four-cylinder engine that generates a formidable 225 bhp of maximum power.
Also in 2022, Arctic Cat debuted the new Alterra 600 ATV, available in four distinct trim levels.
In April 2021, Arctic Cat unveiled a new addition to its 2022 model year lineup, the Alterra 600 EPS, featuring a redesigned engine, drivetrain, and chassis, promising enhanced power, improved handling, and simplified servicing. Dealerships began stocking this model in July.
February 2022 marked the entry of American Landmaster into the electric UTV market, offering electric-powered UTVs with a towing capacity of 1,200 lbs in both 2-door and 4-door configurations, operating in 4X2 driving mode.
Also in February 2022, Segway Powersports expanded the availability of its Fugleman side-by-side vehicle to over 40 dealerships across the United States.
Back in June 2020, Kawasaki unveiled its 2020 lineup of MULE and ATV vehicles, encompassing the Brute Force ATV series, MULE PRO lineup, and SX series.

Region Insights:

The U.S. off-road vehicles market is primarily concentrated in regions known for outdoor recreational activities such as the Midwest, Southwest, and Western regions. States like California, Texas, Arizona, and Utah have numerous off-road trails and parks, making them significant markets for off-road vehicles. Additionally, these regions have a strong culture of off-roading and motorsports.

U.S. Off-road Vehicles Market Scope

Report Coverage	Details
U.S. Market Size in 2023	USD 12.63 Billion
U.S. Market Size in 2024	USD 13.16 Billion
U.S. Market Size by 2033	USD 19.09 Billion
Growth Rate from 2024 to 2033	CAGR of 4.40%
Base Year	2023
Forecast Period	2024 to 2033
Segments Covered	By Product Type, By Propulsion Type, and By Application

U.S. Off-road Vehicles Market Dynamics

Drivers:

Key drivers of the U.S. off-road vehicles market include the increasing disposable income of consumers, which allows for more spending on recreational activities. The demand for off-road vehicles in agriculture and utility sectors also contributes to market growth. Furthermore, an expanding network of off-road trails and parks across the country encourages more consumers to invest in off-road vehicles.

Opportunities:

There are ample opportunities for growth in the U.S. off-road vehicles market, including the development of electric and hybrid off-road vehicles, which can appeal to environmentally conscious consumers. The integration of advanced technologies such as GPS and vehicle tracking systems can enhance the appeal of these vehicles. Additionally, growth in adventure tourism can create new markets for off-road vehicles.

Challenges:

Despite the potential for growth, the U.S. off-road vehicles market faces challenges such as environmental concerns and regulatory restrictions on off-roading in certain areas. The high cost of some off-road vehicles may also limit market penetration. Additionally, there is competition from other recreational activities that may draw consumer interest away from off-roading.

Recent Developments

In June 2023, Polaris Inc. revealed that it had secured a $700,000 grant aimed at facilitating the development of an electric vehicle (EV) charging infrastructure designed specifically for off-road vehicles. This initiative will be implemented within a public off-road trail system located in Michigan’s Upper Peninsula. The grant originates from the Mobility Public-Private Partnership & Programming (MP4) Grant, which is part of the Michigan Office of Future Mobility & Electrification’s efforts to strengthen the state’s mobility sector, including the outdoor recreation industry, through the adoption of electric and technologically enhanced vehicles.
Also in June 2023, Kawasaki Motors Corp., U.S.A., announced the continuation of its partnership with TrueTimber. Commencing from the 2024 model year, TrueTimber will exclusively provide camouflage patterns for a range of Kawasaki models, including the newly introduced Kawasaki MULE PRO-FXT™ 1000.