Off-road Vehicles Market Size, Share, and Trends 2024 to 2034

Off-road Vehicles Market Size and Companies

The global off-road vehicles market size was USD 23.34 billion in 2023, accounted for USD 24.37 billion in 2024, and is expected to reach around USD 37.48 billion by 2034, expanding at a CAGR of 4.4% from 2024 to 2034. The North America off-road vehicles market size reached USD 15.40 billion in 2023. The off-road vehicles market is driven by increasing interest in off-road sports events.

Off-road Vehicles Market Key Takeaways

• North America dominated the off-road vehicles market in 2023 and accounted for 66% market share.
• Asia Pacific is expected to be the significantly growing marketplace during the forecast period.
• By product type, the three-wheeler segment dominated the off-road vehicles market in 2023 and contributed 46% market share.

U.S. Off-road Vehicles Market Size and Growth 2024 to 2034

The U.S. off-road vehicles market size was estimated at USD 10.80 billion in 2023 and is predicted to be worth around USD 17.72 billion by 2034, at a CAGR of 4.6% from 2024 to 2034.

North America has its largest market share in 2023 in the off-road vehicles market, the region is also observed to see a significant growth throughout the predicted timeframe. Global agriculture is a primary business that uses various off-road vehicle types. The United States of America has many natural landscapes, unpaved roads, and large farms and ranches dispersed across the country. Because of stronger cars and larger clearance zones, off-road vehicles can even access trails and forest roads with less traction and irregular terrain. Off-road vehicles are also utilized for utility and military applications.

Out of all industries, the sports sector in North America has the most significant market share for off-road vehicles. Off-roading is a well-liked leisure activity in the United States, contributing to the high demand for eORVs. Many American businesses, including GMC, Bollinger, and Rivian, work on electric off-road vehicles (eORVs).

• In March 2022, the expansion of Polaris Inc.'s Wilmington, Ohio, distribution plant was formally announced. The expansion will increase the capacity for distribution, broaden the selection of products offered, enhance customer service and delivery, and streamline operations. The complex will have a 465,000-square-foot footprint after the 165,000-square-foot addition.
• In February 2022, a new agreement has been established in the United States and Canada between Wallbox N.V., an internationally recognized supplier of energy management solutions and electric vehicle (EV) charging, and Polaris Inc., a leading power sports company globally. The announcement comes after Polaris unveiled the 2023 RANGER XP Kinetic, which is anticipated to ship in full this summer.

Europe is observed to be the fastest growing off-road vehicles market during the forecast period. Throughout the forecast period, the European market for off-road electric vehicles is anticipated to develop due to rising infrastructure investments and legislation controlling diesel emissions from heavy equipment. Over the past few years, the German government has continuously invested in top-notch infrastructure. Due to Germany's fast-growing infrastructure market, which is especially strong in roads, highways, and transportation infrastructure, other markets for concrete and road machinery may rise significantly.

While Europe is highly urbanized, there's still a strong inclination towards outdoor activities and recreation. Off-roading has become a popular leisure activity, driving the demand for off-road vehicles. Europe has stringent emissions regulations, pushing manufacturers to produce more environmentally friendly off-road vehicles. This has led to the development of electric and hybrid off-road vehicles, catering to consumers' increasing concern for the environment.

• In February 2024, Czech-located electric vehicle manufacturer MW Motors has disclosed the new Spartan 2.0 electric off-reader for the European market.

Asia-Pacific shows a significant growth in the off-road vehicles market during the forecast period. India is an off-roader's heaven with its vast and varied topography. Plenty of places to discover and embark on adventures include wildlife sanctuaries, forest paths, snow-capped mountains like the Himalayas, the Thar desert, and unpaved motorable roads. There will be exclusive locations in the nearby steep areas only accessible off-road. Leading off-road cars in India include the Isuzu D-Max V-Cross, Force Gurkha, Mahindra Scorpio N, Maruti Suzuki Jimny, and Mahindra Thar.

• In February 2024, Mahindra introduced the Thar Earth Edition, which costs between Rs 15.4 lakh and Rs 17.6 lakh. The price of the special edition is Rs 40,000 higher than that of the base LX trim. Only 4x4 models are available for the SUV, and it doesn't change mechanically.

Market Overview

The off-road vehicles market refers to the segment of the automotive industry that deals with vehicles designed and built for off-road use. These vehicles are specifically engineered to navigate rough terrain, such as dirt trails, rocky paths, sand dunes, and other challenging landscapes. Off-road vehicles are manufactured for use in rocky environments. They are mainly used in construction and agricultural activities. They often feature sizeable tires with open, deep treads and flexible suspension.

Off-road vehicles are becoming more accessible to a broader range of consumers due to advancements in technology and manufacturing processes. This accessibility includes a wider range of price points, making off-road vehicles more attainable for a larger demographic. Off-road vehicles are versatile and can serve multiple purposes. They can be used for recreational activities, but also for practical purposes like agriculture, construction, or military applications. This versatility increases their appeal to various market segments.

Off-road Vehicles Market Trends

• In April 2023, INEOS Automotive exposed plans to explore its Land Rover Defender- going after Grenadier 4x4 with a more compact, zero-diffusion off-road vehicle.
• In August 2022, Polaris as contributed its flagship off-road vehicle to India. The RZR Pro R Sport is a two-seater vehicle with 16-inch (406 mm) ground clearance and a 74-inch (1880 mm) width, which will be handy in off-road adventures.
• In August 2022, AGCO provided a more oversized frame, more hydraulic capacity, and an improved powertrain equipped with VarioDrive and the Fendt iD low engine speed concept with the launch of the Fendt 700 Vario Series.
• In July 2022, Kubota Corporation planned to increase the production capacity of its primary mini excavator manufacturing site in Japan, the Hirakata Plant. By creating a new facility that can handle painting assembly along with additional manufacturing procedures, Kubota will be able to raise its yearly production capability from 48,000 to 78,000 units. With these additional manufacturing capabilities, Kubota will be able to meet the growing demand in North America and Europe as well as the demand it anticipates in Asia and other rising countries in the future.

Off-road Vehicles Market Growth Factors

• Growth in the trend of recreational activities and adventure sports promotes the adoption of off-road vehicles by fueling the market’s growth.
• An increase in penetration of AWD and 4WD vehicles is also observed to be associated with the growth of the off-road vehicles market.
• Development of electric-powered off-road vehicles along with the increasing support of governments for the development of advanced and unique automotive components is observed to promote the market’s growth.

Market Scope

Market Dynamics

Driver: Rapid adoption for agricultural activities

The best-performing vehicles are off-road ones. With the utmost precision, they can move several cubic meters of earth, operate in challenging areas, and carry big loads. Simultaneously, there is an increase in demand for fuel efficiency, comfort, ease of use, and environmental sustainability. Autonomous and self-driving vehicles are being used in more job operations. It is difficult to test these functions at an early stage, yet maximizing efficiency and safety is essential. The vehicle and any attached trailer or accessory can be immediately evaluated with a virtual prototype, which also helps to streamline the vehicle development process. Thereby, the rising adoption of off-road vehicles for agricultural activities promotes the growth of the off-road vehicle market.

Restraint: Safety concerns related to off-road vehicles

Rain, snow, and strong winds can cause havoc on the landscape and raise the danger of rollovers, slides, and losing control. A flaw in the vehicle can rapidly and severely cause a driver to lose control, regardless of experience level, whether they have been off-roading for years and know the vehicle inside and out or are total novices. This has a detrimental effect on the market and impedes expansion. Thereby, the factor associated with the concerns acts as a major restraint for the off-road vehicles market.

Opportunity: Growth of off-roading sports activities

One of the most enjoyable pastimes available to people is off-roading. Nothing is more exhilarating than leisurely driving through one of the world's most diverse communities. Age, gender, or restrictions do not apply to the love of off-roading, which spans from 18 years old to retired veterans. There are various off-road activities, including rally racing, overlanding, weekend excursions, off-road excursions, and off-road trails. It is available in every size and shape.

People are naturally adventurous and love to take risks and try new things. This is the exact reason we enjoy off-roading so much. What was formerly a luxury for a select few is now a popular pastime. Traveling the less-traveled route to reach the most remote and unconventional places on the globe might be difficult. But the fun comes along with the trials. The difficulties, uncertainty, and sense of achievement create a singular experience. This is what distinguishes off-road driving.

Off-road driving requires competence, technique, intelligence, patience, and presence of mind. Such abilities must be developed, and this takes experience. In the end, this presents a chance for the off-road vehicles market.

Product Type Insights

The three-wheeler segment dominated the off-road vehicles market in 2023. In commercial settings, three-wheelers are usually used for both passenger and freight transportation. Three-wheeled mobility is contingent upon cost, door-to-door delivery, and maneuverability. In many developing countries, three-wheelers are the most cost-effective and speedy option for cargo and public transportation, making them the ideal choice for meeting the demand.

• In March 2023, At CONEXPO-CON/AGG 2023 in Las Vegas, Honda developed and demonstrated the expanded capabilities of its prototype Honda Autonomous Work Vehicle (AWV) to enhance the construction sector and job site efficiencies.

The all-terrain vehicle segment shows a significant growth in the off-road vehicles market during the forecast period. Three- or four-wheeled motorized vehicles with big, soft tires and a somewhat elevated center of gravity are known as all-terrain vehicles (ATVs). They are mainly utilized for off-road activities. Like motorcycles, ATVs have handlebars that allow one person to straddle the vehicle's body. Some weigh up to 600 lbs. and top speeds of 50 mph.

Off-road Vehicles Market Companies

• Arctic Cat Inc. (Textron Inc.)
• ARGO
• BRP
• Deere & Company
• Electra Meccanica
• Harley-Davison, Inc.
• Honda Motor Co., Ltd.
• SSR Motorsports
• Taiga Motors Inc.
• Yamaha Motor Co., Ltd.

Recent Developments

• In August 2023, BYD declared the off-road SUV BAO 5 governed by the DMO tech and FANGCHENGBAO brand.
• In August 2022, all Volcon Inc.'s off-road utility terrain vehicles, notably the company's flagship Volcon Stag UTV, which was unveiled to the public on July 1, 2022, will be powered by General Motors' tried and accurate electric propulsion systems. Future GM electric propulsion systems will be used in the design and development of future models, which will include further iterations of the Stag and the company's projected "Project X" vehicle. With GM's electric propulsion, Volcon will be the first and, for now, the sole off-road power sports manufacturer to provide their entire lineup of vehicles.

Segments Covered in the Report

By Product Type

• All-Terrain Vehicle
• Utility Terrain Vehicle
• Snowmobile
• Three-Wheeler

By Application

• Utility
• Sports
• Recreation
• Military

By Propulsion Type

• Gasoline
• Diesel
• Electric

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa