Off-Road Vehicles (ORV) Market Hits $12.4BN in 2022; Electric Advancements Surge Predicts 8.11% CAGR by 2030

Off-Road Vehicles (ORV) Market Hits $12.4BN in 2022; Electric Advancements Surge Predicts 8.11% CAGR by 2030
In 2022, the Off-Road Vehicles (ORV) market valuation exceeded USD 12,415.6 Million. Projections indicate a growth rate of over 8.11% CAGR from 2022 to 2030. A significant factor propelling this growth is the emergent development and adoption of electric off-road vehicles in Europe.

Off-Road Vehicles Market Analysis

In 2022, the Off-Road Vehicles (ORV) market valuation exceeded USD 12,415.6 Million. Projections indicate a growth rate of over 8.11% CAGR from 2022 to 2030. A significant factor propelling this growth is the emergent development and adoption of electric off-road vehicles in Europe.

Europe, with its diverse mountainous and rugged terrains, provides ample opportunities for the off-road vehicle sector. Leading European nations such as the UK, France, and Germany have reported an upsurge in the adoption of electric ORVs, predominantly among the millennial demographic. The EU’s decision in early November 2022 to prohibit the sale of new petrol and diesel vehicles by 2035, in a bid to reduce CO2 emissions, has further enhanced the attractiveness of electric alternatives. These vehicles, devoid of fossil fuel reliance, are poised to redefine industry standards.


Report Coverage


Market Size in 2022

USD 12,415.6 Million

Market Size by 2030

USD 21,425.39 Million

Growth Rate from 2023 to 2030

CAGR of 8.11%

Largest Market

North America

Base Year


Forecast Period

2023 to 2030

Segments Covered

By Vehicle Type, By Propulsion, By Application, By Region

Regions Covered

North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Challenges Facing the Market

While the industry has potential, it’s not without its challenges. Off-roading is recognized as a high-risk adventure activity with a propensity for severe mishaps. Many off-road vehicles offer limited protective measures to riders, potentially curtailing market growth. Additionally, the marketing of these vehicles to a younger demographic, in the absence of robust regulatory oversight, increases the potential for accidents, posing a substantial challenge to the industry’s advancement.


Browse Full Report Table and Figures –


All-Terrain Vehicles (ATV) Segment on an Upward Trajectory

The All-Terrain Vehicle (ATV) sector is predicted to witness an 8% growth from 2023 to 2030. Factors contributing to this growth include an increase in ATV clubs and the proliferation of outdoor parks. The surge in sports competitions and the active participation of younger generations in these outdoor pursuits will likely fuel this growth trend. Furthermore, the advent of facilities emphasizing proper driving training and passenger safety is expected to enhance product demand.

Dominance of ORVs in Construction and Mining

From an application standpoint, the construction and mining sectors are forecasted to lead in the global off-road vehicle industry. The ongoing surge in global infrastructure development projects necessitates robust construction and mining equipment. The appeal of ORVs in these sectors is further intensified by increasing automation and the incorporation of machinery to augment human efforts. Heavy construction machinery integration considerably optimizes overall project costs. The trend of renting such heavy-duty equipment, being more economically viable than outright purchase, underscores the escalating popularity of ORVs in these industries.

No-Emission Vehicles: A Growing Demand

The electric propulsion segment in the off-road vehicles market is set to experience an impressive 17% growth rate by 2030. As global governments intensify efforts to reduce carbon emissions and combat pollution, electric vehicles are rapidly becoming mainstream. This transformation is enhancing the demand for electric Off-Road Vehicles (ORVs), especially given the rising popularity of off-roading ventures. Electric motors, known for delivering immediate power and torque, are particularly appealing to U.S. consumers.

Recreational usage of off-road vehicles is projected to attain a market value of USD 16 billion by 2030. This upswing can be attributed to augmented expenditure on leisure and adventurous activities. The Covid-19 pandemic, which necessitated home confinement, led to a subsequent surge in outdoor recreational participation once restrictions were relaxed. This trend presents notable investment prospects, invigorating the industry’s momentum.

In 2022, North America’s off-road vehicles market was valued at 12 billion. The region’s dominant stance is due to a relatively higher engagement in recreational activities, fostering increased demand for ORVs. The U.S., in particular, boasts a thriving off-roading industry, complemented by the introduction of state-of-the-art vehicles.

Competitive Landscape: An Era of Expansion

Prominent stakeholders in the dynamic off-road vehicles market include Honda Motors, Polaris Industries, Yamaha Motor Corporation, BRP, and Kawasaki Motors Corporation. To fortify their market position, many of these entities are concentrating on refining product designs, enhancing configuration, and augmenting after-sales support.

The Pandemic’s Ripple Effect on the Off-Road Vehicles Market

The onset of the COVID-19 pandemic adversely affected numerous sectors, especially those predicated on outdoor engagement. The initial phase of the pandemic saw the off-road vehicles market grappling with subdued demand due to worldwide lockdowns. However, the easing of these restrictions triggered a resurgence in outdoor pursuits, catering to a populace eager to break free from prolonged confinement. As per Polaris, a prominent American automaker, there was a substantial uptick in ORV sales, registering a near 40% increment in profits during Q1 2021. This underscores a burgeoning demographic keen on exploring off-roading.

Key Trends in the Off-Road Vehicle Market

  1. Robust Growth in the All-Terrain Vehicle (ATV) Segment:
    • The ATV market is witnessing accelerated growth due to diversified end-use applications by manufacturers. The rising enthusiasm for sports and recreational activities is further propelling this segment.
    • Environmental sustainability is also a focus, with manufacturers increasingly leaning towards eco-friendly vehicle variants.
    • Notable product launches include Polaris’ RZR (R) Pro R Sport ATV model in India (2022), Arctic Cat’s Alterra 600 ATV, and Yamaha’s ATV models such as Grizzly 2021 and Kodiak 700.
    • Regulatory changes and guidance, primarily from entities like the California-based All-terrain Vehicle Safety Institute (ASI), are shaping the ATV market. These regulations, focusing on safety and standardization, endorse approved accessories like seatbelts, helmets, and kill switches.

The future of the off-road vehicles market is poised for evolution, driven by technological advancements, regulatory shifts, and changing consumer preferences.

Global Off-Road Vehicle Market: Key Player Analysis

The off-road vehicle market on a global scale demonstrates a consolidated landscape, characterized by a cadre of prominent manufacturers wielding substantial market shares. Advanced technological integrations are a common strategy employed by these manufacturers, aimed at bolstering their market standing. Furthermore, expansion of product portfolios through strategic acquisitions and partnerships has been observed as a prevalent trend.

Prominent entities operating in the global off-road vehicle market include Caterpillar Inc., Deere & Company, CLAAS KGaA mbH, Valtra, Escorts Limited, KUBOTA Corporation, YANMAR CO., LTD., Mahindra & Mahindra Ltd., SAME DEUTZ-FAHR Italia S.p.A., AGCO Corporation, Doosan Infracore, AB Volvo, BELL Equipment, Hitachi, Ltd., Liebherr- International AG, CNH Industrial America LLC, Komatsu America Corp., ALLU Finland Oy, Terex Corporation, and Manitowoc.

Recent Milestones in the Global Off-Road Vehicle Industry

  1. AGCO Corporation: In August 2022, AGCO unveiled its new Fendt 700 Vario tractor series for the North American market. These tractors come equipped with a high-efficiency powertrain, complemented by VarioDrive transmission.
  2. KUBOTA Corporation: In July 2022, KUBOTA disclosed its plans to enhance the production capacity of its principal mini excavator manufacturing facility located in Hirakata, Japan. By inaugurating a new site dedicated to processes like painting and assembly, the corporation aims to elevate its yearly production capacity from 48,000 to 78,000 units.
  3. Caterpillar Inc.: Caterpillar, a vanguard in the realm of construction equipment manufacturing, introduced two cutting-edge products to the Indian market in May 2022. These products, the Cat 303 CR Mini Excavator and Cat 120 GC Motor Grader, are strategically designed to fortify the company’s foothold in sectors like infrastructure, mining, and energy within India.

These developments underline the industry’s focus on innovation, capacity expansion, and regional market penetration, signaling a vibrant future for the global off-road vehicle market.


Dive Deeper into the Data: Browse Full Report with Free Sample :


Get Free 15% off on Customisation 


Follow Us @ Linkedin


About Us:

Credence Research is a viable intelligence and market research platform that provides quantitative B2B research to more than 2000 clients worldwide and is built on the Give principle. The company is a market research and consulting firm serving governments, non-legislative associations, non-profit organizations, and various organizations worldwide. We help our clients improve their execution in a lasting way and understand their most imperative objectives. For nearly a century, we’ve built a company well-prepared for this task.

Media Contact
Company Name: Credence Research
Contact Person: Gunakesh Parmar
Email: Send Email
Phone: +91 6232493207
City: Gwalior
State: MP
Country: India