Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Off-road Vehicle - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Off-road Vehicle Market is set to reach USD 24.33 billion by 2026, advancing from USD 22.47 billion in 2025, with projections hitting USD 36.25 billion by 2031. This represents a robust CAGR of 8.28% between 2026 and 2031, fueled by the rise in outdoor recreational activities, electrification, and utility applications.
Key factors bolstering this growth include increased trail infrastructure funding, precision-farming initiatives, and advancements in military mobility programs, all of which broaden the demand spectrum. Technological innovations such as electronic power steering (EPS), telematics, and advanced suspension systems further enhance appeal for both consumer and commercial segments. Despite previous revenue dips among major suppliers, the market demonstrates resilience by diversifying into electric models, specialty defense contracts, and subscription-based services, ensuring stable long-term revenues.
Outdoor Recreational Tourism Boost
In 2024, outdoor recreation contributed USD 1.2 trillion to the U.S. GDP, prompting increased ATV and UTV purchases. Key state programs, such as Colorado's and Oregon's grant allocations, have bolstered trail access and rural manufacturing, while Minnesota's snowmobile trails significantly boost tourism revenue.
Defense Sector Demand
Defense forces require agile vehicle solutions for complex terrains. India's upcoming tender and Europe's FAMOUS program showcase the need for modular, tactical vehicles. The U.S. has also funded the acquisition of light combat vehicles, urging vendors to innovate with modular chassis and hybrid powertrains.
Lithium Supply Constraints
With China holding a substantial share of lithium refining and battery production, global manufacturers face supply risks. Despite U.S. funding to boost domestic processing, challenges persist, affecting battery costs and electric ATV adoption.
Segment Analysis
UTVs captured over half of the market share in 2025, driven by demand from recreational, agricultural, and defense sectors. All-terrain vehicles maintain strong demand, especially in regions with width restrictions. The off-road vehicle market balances traditional internal-combustion engines with emerging electric models, adapting to changing consumer needs.
Recreational pursuits account for a significant market portion, with military and law enforcement demand projected to rise. Agriculture, construction, and emerging tourism activities continue to expand market applications.
Geographical Insights
North America leads with 37.84% market share in 2025 due to outdoor recreation investment and extensive trails. Asia-Pacific is growing at the fastest rate, supported by government funding and the rising popularity of outdoor lifestyles. While Europe lags in growth, regulatory incentives for electrification encourage innovation in alternative powertrains.
Market Players Covered in the Report:
- Polaris Inc.
- Bombardier Recreational Products Inc. (Can-Am)
- Yamaha Motor Corp.
- Textron Inc. (Arctic Cat)
- Kawasaki Heavy Industries Ltd.
- Suzuki Motor Corp.
- Honda Motor Co. Ltd.
- CFMOTO Powersports Inc.
- Kwang Yang Motor Co. Ltd. (Kymco)
- American LandMaster
- Tracker Off-Road (Bass Pro Shops)
- Kubota Corp. (RTV)
- John Deere (Gator)
- Mahindra & Mahindra Ltd.
- Segway Powersports
- Hisun Motors Corp.
- Linhai Group
- TGB (Taiwan Golden Bee)
- DRR USA
For more information about this report visit https://www.researchandmarkets.com/r/q8ckuf
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