Today, the All-Terrain Vehicle (ATV) Industry comprises a surprisingly complex business sector. It includes both manufacturers and retailers who sell ATVs and related products. Many questions remain concerning the impact of the global coronavirus pandemic on this niche market.
Assessing the extent of the ongoing demand for these products also proves problematic (in some respects). A wide array of product lines and the invention of exciting new technologies have recently enhanced the ATV market. As a result, analysts frequently group ATVs with slightly more extensive and more expensive Utility-Terrain Vehicles (UTVs) or Recreational Utility Vehicles (RUVs).
Challenges Facing the ATV Market
Clarifying The Scope of The Market
Another challenge confronting ATV sellers this year involves defining the industry. For example, numerous manufacturers today produce smaller scooters, ATVs, and larger UTVs. Thus, assessing the marketplace’s value accurately requires clarifying whether sales figures apply to both types of recreational vehicles or only to ATVs.
Reportedly, new ATVs command prices ranging from $4,000 to $16,000. UTVs typically include passenger seats and a greater cargo-carrying capacity. These oversized vehicles range from $8,000 to $18,000 in price. Recently, some companies have also begun producing XUV crossover utility vehicles as a particular recreational off-highway vehicles (ROV) category.
Yet another ongoing challenge for the ATV industry concerns safety. Despite recent legislative action, unacceptable casualty and fatality rates still cause public concern. Some 300 to 400 people die annually in the USA alone from ATV-related accidents. In addition, children remain at high risk from this source since they are sometimes crushed by tipped-over vehicles.
During the pandemic, ATV accident rates rose in some states. For example, Minnesota reported 19 fatalities connected to ATVs as of September 23rd. ATV accidents also sent five seriously injured children under ten years to Hennepin County’s E.R.
Establishing Dedicated Public Use Areas
One of the potential opportunities for expanding the ATV industry lies in creating dedicated use areas for these off-road vehicles. Since this equipment easily damages sensitive ecosystems, many parks won’t authorize this transportation outside specified sites. In addition, most jurisdictions in the USA and Canada do not allow these vehicles on public roads. As a result, landowners currently constitute an important market for all-terrain vehicles.
Consequently, non-landowners may enjoy limited opportunities to use this equipment. Some states, including West Virginia and Georgia, have created special-use ATV trail systems. Obtaining well-maintained, dedicated ATV recreational areas might benefit this industry.
Another possible opportunity for manufacturers this year involves developing specialized new ATV models. In addition to recreational uses, ATVs serve a variety of industries. For example, the largest U.S. manufacturer, Polaris, recently released special editions for different hunting terrains.
ATVs assist sports competitions, the military, oil and gas producers, law enforcement, surveyors, wilderness firefighters, EMS departments, and search and rescue operations. This technology potentially enjoys broad utility.
Striving to Meet Market Demand
As 2023 progresses, it remains unclear whether the high demand for ATVs and UTVs will continue. Yet ample room exists for developing innovative new product designs in this industry. Therefore, the ability of manufacturers to address these challenges and opportunities should prove crucial during 2023.
10 Trends Shaping The All-Terrain Vehicle (ATV) Industry
Electric Youth ATVs
This trend in youth ATVs comes from Best Reviews, a reliable company that does not accept products from manufacturers. Their team spent time deciding which trends are necessary to make a great ATV for children. The top pick for youth ATVs in 2023 is a dirt quad ATV called the Razor. The movement to have an electric ATV is on the rise, and this youth four-wheeler also has high-performance tires, like ATVs driven by adults.
Fun Accessories on Youth ATVs
Kid Trax is an ATV that doesn’t go very fast but has some new accessories trending in the market. Best Review picked Kid Trax as the best affordable model of youth ATV. This kid’s ATV has working headlights and buttons to make realistic engine sounds that children will enjoy.
Hydraulic Disc Brakes on Top Performing ATVs
Our first trend in adult ATVs comes from a list compiled by ATV.com. This website provides consumers with reviews, product information, and more. The top-performing ATV on their list for this year is the sophisticated Polaris Sportsman 450 (H.O.). Like most ATVs in its class, the Sportsman has hydraulic disc front and rear brakes and a fuel-injection carburetor engine.
Runner-up Top ATV Has Dual Hydraulic Front Brakes
ATV.com chose the 2023 Can-Am Outlander Max XT 570 as the second-best ATV. The trend for warranties on new ATVs is five to seven years, and this ATV meets that demand with a guarantee of six years. Compared to the Polaris Sportsman, the Outlander has a similar braking system, but the front brakes on this model are dual hydraulic brakes.
Dirt Wheels Magazine’s Best ATV for Doing Work
Dirt Wheels Magazine is available in print, in the iTunes store, and through many other major distribution networks. In their 2023 ATV Buyer’s Guide, their staff discusses the trend of owning an ATV that is good for doing work. For example, the Alterra 570 by Arctic Cat has towing capabilities, and its ground clearance is 11 inches.
Affordable Adult ATVs
A trend that is always popular among consumers is affordability, so Motor Day put this criterion on their list of the 25 best ATVs on the market. Their pick for the best affordable ATV is from a company from the Zhejiang Province in China called Tao Motors. The Tao Tao T-Force 110cc has industry-standard hydraulic disc brakes. It also has two utility racks for carrying cargo.
Top ATVs Have Well-Rounded Specs
According to Motor Day, one of the prominent trends ATV buyers in 2023 want is finding a machine that meets their needs in a balanced way. For this reason, their top pick is the Tao Tao Rhino 250. This powerful machine is equipped with a 200cc 4-stroke engine.
Versatility and Good Shocks for Trail Riding
Gear Sustain is a motorcycle and ATV enthusiast resource headquartered in Arizona. They’ve assembled a list of the best ATVs for trail riding in 2023. Topping off their list is the Raptor 700R from Yamaha. This machine is trendy because of its versatility in meeting the demands of new and old riders. In addition, gear Sustain mentions how this machine is a smooth vehicle because of its high-quality shocks.
Torque Is a Major Concern for Trail Riding Enthusiasts
As reported by Gear Sustain, the second choice for the best ATV in 2023 is the Kawasaki Brute Force 750i EPS. This vehicle is appealing today because of its high torque ability. Kawasaki loaded the Brute Force with a 749cc V-Twin engine to meet this demand. This one is good for trails and for working around the yard.
Picking a Good ATV for Hunting
Eagle Cap Outdoors is responsible for assembling the information behind this trend in hunting ATVs for 2023. They ranked their picks based on various factors, including towing capacity, price, accessories, and winch quality. Their top pick was the Can-Am Outlander Mossy Oak 650. They picked this one above the rest because it has two winch receivers, a lot of clearance for riding through the brush, and excellent towing capacity.
ATV Industry Stats and Growth Projections in 2023
ATV Ownership Broken Down by Age
If you’re wondering how many others own an ATV, it’s a good idea to see which age groups are accustomed to riding one. Knowing this information will help buyers decide if purchasing an ATV for someone else is a good idea. In addition, this information should be helpful to anyone working within the ATV industry.
Statista, a reliable source in over 200 markets, has obtained this information. Statista’s survey results are from a study that included over 4,000 respondents. Their survey shows 8.11 percent of ATV owners were between 18 and 29. In addition, more than 30 to 49-year-old respondents owned an ATV, resulting in an 11.85 percent share from this group. Lastly, around 5.5 percent of ATV owners were in the age range of 50 to 64 years. This survey was conducted in 2018.
How Many People Will Buy an ATV?
In January of 2023, Alexander Kunst published this statistic on Statista. This information was obtained before 2023, representing the percentage of people planning to purchase an ATV in the preceding year. According to this survey, around 5.5 percent of the people questioned about buying an ATV had planned to buy one. The survey group included people in the age range of 18 to 29 years.
Increase in ATV Roads Throughout America
While people of various age groups enjoy ATVs, enthusiasts might have difficulty finding a place to ride. However, the expansion of ATV pathways in parks throughout the country should cause an increased interest among consumers. This information comes from a source formerly called PrimeNewswire (founded in 1998). GlobeNewswire is recognized for releasing public relations reports for companies in North America and Europe.
According to this source, the number of parks allowing ATVs was deficient. For example, a decade ago, only a dozen parks (out of nearly 400) had approved ATV pathways.
Market Shared Between Five Major Companies
According to GlobeNewswire, around 90 percent of the national and worldwide ATV sales market is split between five competing companies. Three of the five manufacturers sharing this significant portion of the market are in the U.S. The US-based companies are Polaris, Arctic Cat, and BRC. The other two are Honda and Yamaha. Polaris operates out of Minnesota, and Arctic Cat is also in Minnesota.
Safety Requirements Have Increased for ATVs
Along with more riders mounting ATVs throughout the U.S., there have been increased injuries from ATV use and misuse. According to GlobeNewswire, injuries and fatalities have hindered the growth of this market. Fortunately, the U.S. has created stringent public safety precautions to address the growing demand by ATV enthusiasts. Unfortunately, from 2006 to 2016, over 14,000 fatalities were attributed to ATV use and misuse. This statistic comes from the U.S. Consumer Product Safety Commission.
CAGR to Increase From 2023 to 2025
The CAGR (compound annual growth rate) is expected to increase by nearly 5 percent from 2023 to 2025. This information is good news for anyone interested in investing in the ATV market, and current investments should be in the money.
Value of ATV Market in 2019
With such a large percentage of the ATV market share in the U.S., it’s no surprise that the North American ATV market value is well over a billion dollars. In 2019, the ATV and UTV market was valued at around 5.89 billion dollars.
Top Five Companies Have the Largest Revenue in Industry
In addition to having the most significant market shares, the top five manufacturers have the most important claims of revenue from ATV sales. Since a large portion of sales come from the top five manufacturers, it’s no surprise that 75.90 percent of income is also attributed to these companies.
Average Cost of ATVs
According to a consumer reporting website called Kompare It, the average cost of an ATV is between $8,000 and $17,000. This resource is only taking into account new ATV purchases from dealerships.
Average ATV Insurance Cost
Consumers considering purchasing an ATV might be interested in learning about insurance statistics. Insurance companies will offer several options to cover the ATV, the rider, and property damage. Value Penguin presents data for five insurance options. The lowest insurance option costs $99, and the most expensive option costs $1,597.